(Bloomberg) — American households are paying more than ever before for electricity after prices surged the most in almost two years, according to the US Energy Information Administration.
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The average retail price for electricity gained 7.4% in September to a record 18.07 cents per kilowatt-hour, the biggest gain since December 2023, according to data released Tuesday. Power costs are expected to climb even higher in 2026, and transportation and commercial customers are seeing similar trends, amid rising fuel costs and increased demand.
The figures highlight the rising pressure consumers are facing from higher energy bills, as increased power consumption from data centers and industrial users boost prices. While electricity typically fluctuates from month to month due to weather, fuel costs and other reasons, the data shows that power prices have been steadily marching higher for the past five years.
A notable part of the increase comes from natural gas. September prices for the biggest source of US power were up 30% from a year earlier.
–With assistance from Josh Saul.
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