Affordability is commonly defined as a household's ability to pay for essential utility services without sacrificing other basic needs. In electric utilities, rising costs of grid modernization, renewable integration and resilience efforts are outpacing income growth for many households.

Water utilities face challenges of declining consumption paired with aging infrastructure, pushing up fixed costs. Gas utilities contend with decarbonization mandates, pipeline safety compliance and shifting demand dynamics, all adding financial pressure. In each case, affordability is shaped by a web of interacting factors including energy efficiency, rate design, regional supply mix and socioeconomic inequality.

Traditional responses often isolate affordability as a customer assistance problem rather than treating it as a systemic outcome. A systems thinking approach reveals that affordability emerges from the interplay of capital investment cycles, regulatory models, rate-making practices, digital maturity and customer engagement strategies. It calls for integrated thinking that transcends department silos and considers long-term feedbackloops.