Households receive second €200 electricity credit
Over 2.2 million households, including pay-as-you-go customers, received the next €200 (including VAT) electricity credit payment from January 1. Depending on a household’s individual billing cycle, people will see the credit during January or February.
This is the second of three €200 electricity credits announced as part of a suite of measures under Budget 2023. The first €200 credit was applied before Christmas (November/December billing cycle); the third tranche will apply in the March/April billing cycle. This €600 intervention followed an additional €200 (including VAT) electricity credit, that was paid out earlier in 2022.
This €600 intervention will cost over €1.2 billion. This is part of a broader €4.1 billion package of one-off measures that was announced in Budget 2023, and which is now supporting households and businesses right across the country in the midst of high energy prices, as a result of Russia’s invasion of Ukraine.
Specific arrangements for the electricity credits have been put in place for customers using prepay or pay-as-you-go meters. For example, guidance on how they can receive the credit has been given and has been communicated by suppliers. The majority of pre-payment 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.
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.
Minister for the Environment, Climate and Communications, Eamon Ryan, 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 acutely, due to the crisis in Ukraine. We know that everyone is working as hard as they can for their families and households, and that rising costs are making it ever-more expensive to do the weekly shop, to fill the car and pay the bills — especially as we face into the New Year.
“The ESRI has found that the one-off measures we brought in, as part of Budget 2023, are insulating most households from rising prices this winter. Across Government and across our State agencies, we will continue to closely monitor the situation.
“We know from our regular Reduce Your Use tracker surveys that people are worried that they won’t be able to pay their energy bills, or that they won’t be able to heat or power their homes adequately, particularly during cold snaps like those we’ve experienced very recently. That’s why, for example, we’ve put in place a €10 million fund to bolster hardship funds already provided by many energy suppliers – as part of a new Energy Poverty Action Plan.
“We are encouraging people to engage with their energy suppliers and to seek additional support from them in the first instance. People in need of further support can apply for an Additional Needs Payment (provided by the Department of Social Protection). This includes customers on a pay-as-you-go meter who may need immediate financial assistance to keep their energy on. Every effort will be made to ensure that anyone in financial distress, and who qualifies, receives an Additional Needs Payment on the same day or as soon as possible where it relates to electricity and heating.”