Philadelphia’s utility bills surge again in 2026 after relentless 2025 hikes
Philadelphia residents are facing another round of rising utility costs in 2026. Multiple rate hikes in 2025 already pushed combined bills up by over $30 a month for many households. Now, further increases are on the way, adding pressure on budgets already stretched thin.
The year 2025 saw repeated price jumps for essential services. In January, PECO raised its electricity distribution rates by 10%, lifting the average residential bill from $135.85 to $149.43. Then, in September, the Philadelphia Water Department increased typical water bills by 9.4%, taking them from $81.77 to $89.42. By late November, Philadelphia Gas Works added a 6.6% rise to gas bills, pushing the average from $92.60 to $98.70.
The trend continues into 2026. On December 18, 2025, the Pennsylvania Public Utility Commission approved an 8.1% PECO distribution rate hike, effective January 1. This will add roughly $14.04 to the average monthly electricity bill. A smaller 2.8% increase will follow later in the year, raising bills from $156.01 to $160.37. For residents like Edoardo Vignani, these rises hit hard. He has watched his bills climb steadily since losing his job in 2022. One summer month saw his electricity bill exceed $400. Others, such as Chia Cotansuca, are now looking for financial support, planning to apply for bill assistance. The problem isn’t localised—across Pennsylvania, Delaware, and New Jersey, electricity prices have outpaced inflation over the past six years.
The latest increases mean Philadelphians will pay even more for water, gas, and electricity in 2026. With bills rising faster than wages for many, households like Vignani’s and Cotansuca’s will need to adjust budgets or seek aid. The approved rate changes will take effect in January, locking in higher costs for the year ahead.
