Press release
First of three €200 electricity credits to appear on bills from 1 November
From Department of the Environment, Climate and Communications
Published on
Last updated on
From Department of the Environment, Climate and Communications
Published on
Last updated on
From tomorrow (Tuesday, 1 November) 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, 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; that is, €200. €600 exclusive of VAT is €550.47.)
ENDS
Using the unique Meter Point Registration Number (MPRN), the payments will be credited to all domestic electricity accounts, including pay-as-you-go customers.
The Commission for Regulation of Utilities (CRU) has oversight of the Electricity Costs Emergency Benefit Scheme. The scheme is being operated by the Distribution System Operator (ESB Networks) and electricity suppliers. ESB Networks pass the funds to the energy suppliers. In turn, the energy suppliers credit the domestic electricity accounts.
A credit line item will appear on bills in the amount of €200 (excluding VAT) on each occasion, with the identifier ‘Government Electricity Credit’ or an abbreviated version of this.
The credit is designed to provide all domestic electricity account holders with a contribution to their electricity bills. In some cases, tenants in rented accommodation pay their landlord for their electricity (and do not have a domestic electricity account in their own name). The expectation, in those circumstances, is that landlords will pass on the credit to their tenants. The Department of the Environment, Climate and Communications has partnered with the Residential Tenancies Board (RTB) to ensure that this is communicated widely across the rental sector, to landlords and tenants alike. Those using and ultimately paying for electricity (whether in their electricity bills or included in their rent payments) should be the beneficiaries of the Scheme.
In the event of a dispute arising, tenants and landlords are encouraged to try and resolve the matter together first, by keeping lines of communication open. In the event that the dispute cannot be resolved between the parties, the matter may be referred to the RTB’s free mediation service, where an independent mediator helps both parties to come up with a solution that is mutually beneficial. Alternatively, the parties can apply for adjudication with the RTB, where an independent adjudicator makes a finding based on the evidence related to the case.
Tenants and landlords should have regard to the relevant information on the Electricity Costs Emergency Benefit Scheme II page in the first instance. If further information is needed, on referring a dispute for mediation or adjudication, more information is available on the RTB website.
Each €200 electricity credit will be applied over the course of three separate top-ups or vends, for customers using hardship prepay meters. These meters have a €300 credit limit, and the government credit could put the meter over this limit. As a solution, each credit will be broken down into three smaller credits of €90, €90 and €20, which can be redeemed over the course of a few days – by the customer making a €10 payment towards their electricity bill. Customers will be advised only to pay €10 on each occasion to receive their credit, and to allow one day between each payment.
| 1st vend | €10 credit (customer purchase) | €90 Government credit automatically applied to top-up voucher |
| 2nd vend | €10 credit (customer purchase) | €90 Government credit automatically applied to top-up voucher |
| 3rd vend | €10 credit (customer purchase) | €20 Government credit automatically applied to top-up voucher |
The cross-government Reduce Your Use public information campaign urges householders and businesses to ensure that they are availing of the supports that are in place to help all of us through this winter. The government is asking people to stay warm and well this winter and to know that help is available if they need it over the coming weeks and months.
Where safe and possible, people are being asked to reduce energy wastage. Using less energy will help homes and businesses to save money.
Key partners involved in the campaign are the Commission for Regulation of Utilities (CRU), MABS (Money and Budgeting Advice Service), ALONE and SEAI.
Further information on help and supports over the coming winter period can be found on the Reduce Your Use campaign page.