Understanding Energy Insecurity among Indiana Households

The Problem

Energy insecurity—the inability to pay an energy bill—is a widespread problem among low-income households in the United States. When households are unable to pay for their energy needs, the mental and physical well-being of household members is likely to suffer. The problem is exacerbated by disruptions to the labor market, increases in energy costs, and extreme weather, among other factors.

The economic shock of the COVID-19 pandemic pushed millions of Americans into energy insecurity despite efforts by state and local governments to protect households that have fallen behind on utility payments. Understanding the magnitude of this problem and the shared characteristics of these households is essential to addressing this growing problem.

The Project

Throughout 2020, IU researchers conducted multiple surveys to assess the impact of COVID-19 on household energy insecurity. National and Indiana-specific surveys were conducted in multiple waves to assess how fast-changing economic conditions affected Americans’ abilities to meet their household energy needs.

After two rounds of national surveys, the team found that 20 percent of households could not pay an energy bill, nearly 15 percent received an energy shutoff notice, and about 7 percent had their service disconnected. National findings suggest that around 3.8 million Americans could not pay an energy bill in at least one month in 2020, 2.8 million received a shutoff notice, and 1.2 million have had their electricity disconnected between May and August 2020. Responses from Hoosiers indicate that Indiana’s energy insecurity experiences generally reflect the rest of the country.  

Survey results also reveal disparities in who has been affected most by the pandemic’s economic fallout. Responses indicate that low-income Black and Hispanic households were around two to five times more likely to face energy insecurity compared to low-income white households. Additionally, households with young children, households at or below the poverty line, and households with a member who relies on a medical device were more likely to be energy insecure.

The Path Forward

In 2021, the team is conducting an additional round of surveying to capture households’ energy security status as the pandemic and government policies evolve.

The results will further help answer questions such as what assistance people are seeking, whether they are aware of available options, how much debt people are accruing, how energy debt compares to other forms of debt, and what activities people are forgoing because of their energy insecurity.

Once researchers have conducted and analyzed their latest surveys, they plan on creating a dashboard analyzing US energy disconnections to bring more transparency to this issue.

Updated May 25, 2021

The research team is collecting data through multiple surveys over time. See below for more information on how they are conducting the surveys and what data is being produced.

• Energy-insecure households sometimes use risky coping strategies to keep lights, heat on
• Energy insecurity 
• More Hoosiers facing energy insecurity during pandemic
• Utility shut-offs, evictions more likely for households of color
• A 'tidal wave' of power cuts may be coming as electric companies resume shutoffs
• Low-income households are struggling to pay energy bills during pandemic
• 'Food is more important right now': COVID-19 forces some to struggle paying energy bills
• Energy is a basic need, and many Americans are struggling to afford it in the COVID-19 recession
• 'Tidal wave' of power shut-offs looms as nation grapples with heat
• A pandemic and surging summer heat leave thousands struggling to pay utility bills
• Coronavirus is creating a crisis of energy insecurity
• COVID-19 hurting vulnerable populations already struggling to pay utilities

• Behavioral and financial coping strategies among energy-insecure households
• Which households are energy insecure? An empirical analysis of race, housing conditions, and energy burdens in the United States
• Sociodemographic disparities in energy insecurity among low-income households before and during the COVID-19 pandemic
• Electric utility disconnection policy and vulnerable populations
• Survey of household energy insecurity in the time of COVID: Preliminary results of wave-2, and wave-1 and wave-2 combined
  • View a text alternative of the report
• Survey of household energy insecurity in Indiana in the time of COVID
  • View a text alternative of the report
• Survey of household energy insecurity in the time of COVID
  • View a text alternative of the report
• COVID-19 assistance needs to target energy insecurity