"Who Can Afford These Bills?" Texas, USA Faces Deadly Cold Wave with 18 Million Won Electricity Bill Shock

On the 16th, residents in Alvaine, Texas, USA, were carrying firewood to be used as fuel. Photo by Yonhap News

[Asia Economy Reporter Kim Young-eun] Residents of Texas, USA, who have been hit by the worst cold wave and storm in history, are reportedly suffering a double hardship due to 'electricity bill shock.'

Fox News reported on the 20th (local time) that more than 20 people have died in Texas due to the severe winter storm and cold wave, and that there has been significant damage including large-scale power outages and water supply disruptions.

In particular, some residents in the area received outrageously high electricity bills due to the surge in electricity prices.

Tye Williams, who lives in Arlington, Texas, said, "I received an electricity bill of $17,000 (18.81 million KRW) this month," adding, "Who in the world can pay such a bill? It makes absolutely no sense." Before the cold wave, his average monthly electricity bill for his house, guesthouse, and office combined was about $660 (730,000 KRW).

The New York Times (NYT) reported that Scott Willerby, a retired veteran living on a pension in the Dallas suburbs of Texas, was also billed $16,750 (18.48 million KRW) for electricity last week. According to the report, he only had the refrigerator and lights on and did not use electricity excessively, but was charged an amount equivalent to 70 times his usual total utility bills.

A resident of Texas, USA, is clearing snow on the 16th. Photo by Yonhap News

The reason for the soaring electricity bills appears to be the variable rate plan of the wholesale electricity provider supplying them. This rate plan changes prices depending on electricity supply and demand, and due to the record cold wave causing a surge in power demand, prices also rose accordingly.

As complaints from residents about this 'electricity bill shock' poured in, Texas Governor Greg Abbott stated on the 20th, "We cannot let residents who have suffered for days in the cold be hit with high electricity bills," and added, "We will prepare countermeasures."

Additionally, the White House announced that U.S. President Joe Biden approved the declaration of a major disaster area for Texas, which is experiencing large-scale power outages and water shortages due to the abnormal cold wave. Following the major disaster declaration, Texas is expected to receive increased federal support, including temporary shelters for disaster victims, housing repair costs, and low-interest loans.