Electricity prices are rising faster than inflation year over year, and the overall cost of energy also continues to soar, the Bureau of Labor Statistics reported Friday.
In the latest consumer price index, the BLS reported that electricity prices rose by 5.1% for the year ending in September, nearly double the rate of inflation, which was about 3% for the year.
Electricity prices did fall by 0.5% from the month before, offering some relief for consumers overwhelmed by increasing bills and concerns that soaring demand will hike prices further.
While energy services, including utility gas, were down for September by about 0.7%, the cost of these services was also up by 6.4% for the year.
Only prices for energy commodities, including gasoline, saw yearly decreases of about 0.5%. However, gasoline prices did rise month to month by 4.1%.
Broadly, energy prices increased by 1.5% from the month of August and were also up by 2.8% for the year.
Electricity prices have steadily risen since President Donald Trump took office in January, making it difficult for the president to keep his campaign promise of slashing the cost of energy and electricity in half.
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“Under my administration, we will be slashing energy and electricity prices by half within 12 months, at a maximum 18 months,” Trump said during an August 2024 campaign rally in North Carolina.
“We’re going to get your energy prices down. We’re going to get your energy prices down by 50%,” he echoed just a few days later during a Pennsylvania rally.
As prices remain high, Trump and his administration have pinned the blame on the deployment of renewable energy resources combined with the accelerated phaseout of fossil fuels.
Electricity experts have insisted that the underlying cause of soaring prices is not that simple, pointing to factors such as the replacement and maintenance of transmission lines, risk mitigation for extreme weather, and increased costs associated with maintaining and operating older power plants.
Plus, Energy Information Administration data compiled by the American Clean Power Association this fall revealed that the top 10 states with the largest share of renewables in their energy makeup have also seen significantly smaller electricity price hikes over the last year when compared to the national average.
Paul Cicio, chairman of the Electricity Transmission Competition Coalition, said he believes that transmission costs have been the biggest driver of rising costs.
He has repeatedly urged the Federal Energy Regulatory Commission to pass an order that would require transmission projects to be subject to competitive bids, which he has claimed can reduce costs by about 25%.
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“Competition promises fair prices for Americans. A competitive market means accountability, innovation, reliability, efficiency, and modernization,” Cicio said in a statement.
“The latest electricity price data is a clear signal to the two new Federal Energy Regulatory Commission (FERC) commissioners Laura Swett and David LaCerte, that FERC must take immediate action to deliver rate relief for Americans as promised by President Trump,” he added.
