From tomorrow, the first of three €200 electricity credits* (inclusive of VAT) will be paid directly to over 2.2 million domestic electricity accounts, including both bill pay and pay-as-you-go customers.
The credit line will appear on bills from the start of November and into December, depending on a household’s electricity supplier and billing cycle. The credit is automatic; people do not need to apply for it.
The second and third payments will be paid in January/February and March/April.
Analysis from the Commission for Regulation of Utilities (CRU) shows that the roll-out of the first Government electricity credit in April/May of this year resulted in a decline in the number of domestic electricity customers falling into arrears. It is estimated that the total package of €600 in energy credits**, starting from tomorrow, would equate to around 25% of the estimated annual bill for electricity – for a typical household.
Speaking about this support measure, Minister for the Environment, Climate and Communications, Eamon Ryan TD, said:
“We know from research that this type of financial support is necessary and that it does help. Everyone in Ireland is affected by the energy crisis and the rising cost of living. The Government is acutely aware of the difficulties people are facing, in particular older people, people on lower incomes, young families, renters and many more.
“A €2.4 billion package of supports was implemented earlier this year and a package of once-off measures worth €2.5 billion was included in the Budget 2023. We cannot cushion people completely from the impact of Russia’s war on Ukraine. However, analysis shows that the combination of universal measures and targeted measures introduced in the Budget will help protect households, in particular those at greatest risk of energy poverty. We will continue to monitor the situation closely as we move into the winter.
“I am keen to stress that a co-ordinated whole-of-government approach to the cost-of-living crisis is being followed and is essential in tackling the issue. The cross-Government Reduce Your Use campaign provides clear information about all of the supports and advice available to everyone – from the Government, as well as organisations such as MABS and ALONE. We are also encouraging people to save money by being efficient in their energy use, but only when it is safe to do so. We want everyone to stay warm and well this winter.”
* €200 exclusive of VAT is €183.49, which is the amount consumers will see as a credit line item on their bills. Each domestic electricity account holder will get the benefit of the VAT inclusive amount; i.e. €200.
** €600 exclusive of VAT is €550.47
