Americans facing high summer air conditioning bills are having to cut expenses in other areas to cover the cost.
According to new data from PowerSetter, a platform for comparing energy rates, one in three U.S. households have reduced their grocery spending to manage their utility bills. The company surveyed 2,000 participants, with 75% expecting their summer utility bills to rise significantly, potentially leading to financial strain.
“Extreme heat is driving up energy use. With the ongoing heat wave, households are cranking up the AC, which boosts energy consumption and related costs,” PowerSetter founder and CEO Mark Feygin told Fortune, noting that inflation-related price increases are also contributing to financial difficulties.
“Many consumers are cutting back on electricity usage because they can’t afford the escalating bills, but they may still end up spending more than they did last year,” Feygin added.
Families are also cutting back on non-essential expenses, such as entertainment and vacations. One in five survey respondents reported canceling their summer plans to pay for utilities, and some admitted to borrowing money to cover their bills.
“When one in five Americans are canceling summer plans, it’s a significant warning sign,” finance expert Michael Ryan told Newsweek, emphasizing that rising costs for essentials are forcing people into “difficult financial choices.”
“This highlights the broader impact of inflation on disposable income.”
