From Department of the Environment, Climate and Communications
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The President, Michael D Higgins, signed the Bill on Friday, which paves the way for €200 (inclusive of VAT) to be credited to all domestic electricity accounts. This is almost a doubling of what was originally envisaged, in recognition of pressures on households due to increases in the cost of living. The €176.22 credit line (ex VAT) will appear on bills from next month (April) and continue over the following month or so (depending on a household’s billing cycle and electricity supplier).
The credit will be applied automatically. Households do not need to apply for it. They do not need to contact their electricity supplier.
The scheme is considerable in its scope. It encompasses up to 2.25 million domestic electricity accounts. The Department, the Commission for Regulation of Utilities (CRU), ESB Networks and electricity suppliers have made a concerted effort to prioritise the delivery of this important and unprecedented support measure. The primary legislation needed to establish the scheme, and to enable the credit to be made as soon as possible, was fast-tracked by both the Office of the Attorney General and the Oireachtas. This was done to ensure that the entire legislative process was completed in three months. This included increasing the total funding for the scheme from €215 million to €400 million.
Particular attention has been paid to ensure that all will benefit from this support, especially those in greatest need.
Specific arrangements have been put in place for customers using hardship prepay meters, around how they can receive the credit. This guidance will be communicated by their suppliers. The majority of prepayment meters will accept the credit in full. However, there is a small population of older prepayment meters which, due to their age and inbuilt monetary limits, will require the customer to redeem their credit over three separate transactions over the space of a few days (see the Notes to the Editor section).
For tenants in rented accommodation who pay their landlord for their electricity, the Residential Tenancies Board (RTB) is providing guidance to landlords and tenants, to ensure that the credit is passed to tenants (see the Notes to the Editor section).
Speaking today, Minister for the Environment, Climate and Communications, Eamon Ryan TD, said:
"The Government is acutely aware of recent increases in the cost of living and the impact of rising inflation right across the economy. Increased energy costs have played a significant role in this, due to rising energy costs internationally and, more recently, due to the crisis in Ukraine.
"As part of the Government’s package of measures to tackle the rising cost of living, we recently increased the electricity credit for all households to the value of €200. This will be implemented quickly. In addition, my officials and I will continue our efforts to ensure that we, and the relevant Agencies under my remit, explore every avenue to identify and assist those most in need.
"Internationally, natural gas prices have been on an upward curve since the second half of 2020. This has fed directly through to retail electricity prices, as the wholesale price of electricity correlates strongly with the price of gas. In the long term, the way to reduce our dependence on fossil fuels is to expand our own indigenous supply of renewable power, and to invest in energy efficiency in our homes. We are working towards having up to 80% of our electricity from renewables by 2030 and we now have supports for homeowners, farms and small businesses to generate their own power and sell any excess to the grid. This, in addition to immediate short-term measures, is what we must do – to protect Irish householders from high energy costs over the coming years."
This €200 electricity credit is part of a package of wider measures announced by the Government to combat recent increases in the costs of living. Last month, the Government detailed a €505 million package to mitigate rises in the cost of living. This package of supports comes on top of the measures taken in Budget 2022 to support households, such as increases in social welfare rates, as well as increases in tax bands.
€200 exclusive of VAT is €176.22, 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 – €200.
ENDS
Using the unique Meter Point Registration Number (MPRN), the payment will be credited to all domestic electricity accounts, including pay-as-you-go customers.
The Scheme is being rolled out in this way to ensure that it benefits as many people as possible, as quickly as possible. Consumers will not need to apply for this or do anything. The credit will be automatic.
The Commission for Regulation of Utilities (CRU) has oversight of the Scheme. The Scheme is being operated by the Distribution System Operator (ESB Networks) and electricity suppliers. ESB Networks will pass the funds to the energy suppliers. In turn, the energy suppliers will credit the domestic electricity accounts.
A credit line item will appear on bills in the amount of €176.22 (€200 excluding VAT) 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 in the first instance. If further information is needed, on referring a dispute for mediation or adjudication, more information is available at the RTB website.
The €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, the 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 |