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President Michael D Higgins signed a Bill on Friday 4 March, paving the way for the payment 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 credit line will appear on bills from 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 Commission for the Regulation of Utilities (CRU) will be charged with oversight of the scheme. The scheme will be operated by the Distribution System Operator (ESB Networks) because of its existing interface with all electricity suppliers. ESB Networks will make payments to energy suppliers, who in turn will credit each of their domestic electricity accounts.
How do I sign up?
There is no need to sign up, the scheme is automatic and applies to all domestic electricity accounts either as a bill credit or as a top-up on your prepay meter.
Who is eligible?
The scheme applies to all domestic electricity accounts held with suppliers on 29 March. The payment is being applied automatically. This is an exceptional measure which uses the single eligibility criterion of a meter point registration number, to ensure payments to each domestic electricity account as early as possible in 2022, without any additional means testing. As such, it is being applied automatically to all domestic electricity accounts which were held with suppliers on 29 March. The payment is being applied to domestic electricity accounts - those which are subject to distribution use of system charges at the rate for urban domestic customers (DG1) or the rate for rural domestic customers (DG2), as set out in section 1 of the Act.
I have a prepay meter, will I still receive the credit?
Yes. The scheme applies to all domestic electricity accounts, including pay as you go customers.
Prepay customers are being notified by their supplier via a letter or email to explain how they can receive the credit.
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. In these cases, to redeem each stage of the credit, customers will need to buy a (minimum) €10 top up. When they do this they will receive a new 40-digit code which will credit their meter with the government electricity credit when entered. Once the credit is applied to the customer’s account/meter they can access it by vending three times.
When will I receive the payment?
The credit of €176.22, as set out in section 5(2) of the Electricity Costs (Domestic Electricity Accounts) Emergency Measures Act 2022, is being made to all domestic electricity accounts as their bills are issued through April and May, with facility in the operational arrangements for suppliers to continue to make payments in June to allow for any follow ups.
Are there additional supports available to help with electricity/heating costs?
Yes. The Department of Social Protection has a number of supports available including:
My electricity bill is included in my rent, will I still get the credit?
For operational reasons the scheme can only credit the domestic electricity account holder.
We are working with the Department of Housing, Local Government and Heritage, and the Residentials Tenancies Board (RTB) to publicise and increase awareness of the Electricity Costs Emergency Benefit Scheme to ensure those in rented accommodation who hold the electricity account receive benefit from the payment. In the event that a dispute should arise, there are existing dispute resolution mechanisms provided by the RTB to landlords and tenants. The RTB encourages parties to engage with its mediation service where agreements are reached in over 70% of cases.
Will people with multiple residences like holiday homes be eligible?
The scheme applies to every domestic electricity account.
The scheme uses the above single eligibility criteria, to enable payments to be made at the earliest possible opportunity in 2022.
The scheme does not have additional eligibility criteria. For example, it is not means tested, as the application of such criteria would override the automatic nature of the current scheme, be cumbersome for customers by requiring formal application and delay the automatic crediting of customer accounts.
What if my bill is less than the amount credited?
Should your first billable amount, after the credit is applied to your account, be lower than the value of the credit, the credit will remain on your account and pass onto your following bill(s).
What is the implication in the reduction in the VAT on the Electricity costs emergency benefits scheme?
VAT has been reduced from 13.5% to 9% on gas and electricity bills from the start of May until the end of October as part of the suite of measures introduced in the National Energy Security Framework.
In line with Ireland’s VAT legislation, the rate of VAT that is applicable is the rate in force at the time of issuing of the bill.
The credit of €176.22 as set out in Section 5(2) of the Electricity Costs (Domestic Electricity Accounts) Emergency Measures Act 2022, is being made to each domestic electricity account from April and remains the same.
What happens if closed accounts are credited?
If there is a change of legal entity (a change in the account holder), it is the account holder registered to the supplier on 29 March 2022 who is eligible to receive the credit. Where accounts are closed prior to 29 March, they will not receive the credit.
Suppliers are required to maintain records of any accounts they have been unable to credit, and to return these unallocated credits for the purpose of the scheme to ESB Networks by 15 July 2022. Where accounts were closed prior to 29 March, they will not receive the credit.
I am a landlord who owns multiple apartments – how will tenants receive the credit?
While the majority of residential tenants will hold their own domestic electricity accounts, and therefore receive the credit directly, others would have tenancy agreements where tenants pay their actual share of each bill and, in those cases, will benefit from the payment because the amount of the bill will be reduced by the amount of the payment. A small proportion would have other arrangements in place whereby electricity costs are part of the rental cost.
Where tenants have a dispute relating to tenancies including any terms relating to electricity payments, these can be referred to the Residential Tenancies Board (RTB) for dispute resolution.
I am a business owner, and my electricity for domestic and commercial use all comes through the same metering system – how will I receive the credit?
This is an exceptional measure which uses the single eligibility criterion of a meter point registration number, to ensure payments to each domestic electricity account as early as possible in 2022, without any additional means testing. As such, it is being applied automatically to all domestic electricity accounts which were held with suppliers on 29 March. The payment is being applied to domestic electricity accounts - those which are subject to distribution use of system charges at the rate for urban domestic customers (DG1) or the rate for rural domestic customers (DG2), as set out in section 1 of the Act.
I am a full-time mobile home resident – how will I receive the credit?
This is an exceptional measure which uses the single eligibility criterion of a meter point registration number, to ensure payments to each domestic electricity account as early as possible in 2022, without any additional means testing. The payment will only be applied to domestic electricity accounts, and will be made to the account rather than an individual.
In cases where non-ESBN meters are used, these coin operated meters are not installed by ESBN and are not regulated by the Commission for Regulation of Utilities (CRU). Such meters are usually installed behind the meter, and are contractual matters between residents and the operators of such parks.
In cases where residents of mobile homes hold a tenancy agreement, disputes relating to terms of the tenancy can be referred to the Residential Tenancies Board (RTB) for resolution. Section 78 of the Residential Tenancies Acts prescribes a non-exhaustive list of matters or complaints that can be referred for RTB dispute resolution.
Further information is also available on the Commission for Regulation of Utilities (CRU) website.
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