Utility assistance and pricing structures for energy impoverished households: A review of the literature

Abstract

When households face conditions of energy insecurity, they may qualify and receive assistance from the federal government through the Low-Income Home Energy Assistance Program (LIHEAP) program. This program, however, has traditionally been underfunded, leaving a large percentage of potentially eligible households without assistance. Even households that do receive assistance may still have excessive utility bills and energy burden and need other supports that help them address these conditions. Utilities and state utility commissions frequently offer complementary programs through bill assistance, bill adjustments, and debt forgiveness. This review article synthesizes the literature on alternative rate and pricing structures and arrearage management meant to provide energy insecure households in the United States with relief from utility bills and accumulated utility bill debt. We identify beneficial strategies for program design to complement LIHEAP in mitigating energy burdens, as well as how application may lead to unintended and potentially negative consequences. We evaluate these programs along several dimensions to characterize their benefits and drawbacks, including how they address key criteria toward alleviation of energy insecurity. We conclude with a discussion of potential future research topics that can advance our understanding of program design and use for utility bill and debt relief.