Over 2.2 million households to start receiving the next €200 electricity credit from 1 January 2023
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From: Department of the Environment, Climate and Communications
- Published on: 31 December 2022
- Last updated on: 5 January 2023
Over 2.2 million households, including pay-as-you-go customers, will receive the next €200 (including VAT) electricity credit payment from tomorrow (Sunday, 1 January). Depending on a household’s individual billing cycle, people will see the credit during January or February.
This is the second of three €200 (inclusive of VAT) 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 (see the Notes 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 section).
Commenting on the roll-out of the latest credits in this tranche of supports, 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.”
ENDS
Notes to the Editor
€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. The credit line will begin to appear on bills from tomorrow (Sunday, 1 January 2023) and continue over the January/February period (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. A credit line item will appear on bills with the identifier ‘Government Electricity Credit’ or an abbreviated version of this. 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.
Oversight of the scheme
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 will pass the funds to the energy suppliers. In turn, the energy suppliers will credit the domestic electricity accounts.
Guidance for tenants – in cases where the tenant is not the domestic electricity account holder
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.
Customers using prepay meters
The €200 electricity credit will be applied over the course of three separate top-ups or vends for customers using 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 |
Reduce Your Use / Stay Warm and Well campaign
The Reduce Your Use / Stay Warm and Well campaign is a government initiative to provide practical information to households on how they can reduce their energy use over the winter period, and how they can access financial supports.
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, MABS, ALONE and the SEAI.
Further information on help and supports over the coming winter period can be found on the Reduce Your Use campaign page.
Supports as part of Budget 2023
The 2023 social protection budget package included eight lump-sum payments totalling €1.2 billion, as well as weekly rate increases of €12, effective from January 2023.
These measures are designed to assist families and individuals across the State with the cost of living.
Fuel Allowance
In addition to the lump-sum payment to recipients of Fuel Allowance, a major expansion of the scheme will see up to 81,000 new households supported with their fuel cost for the first time. This measure will take effect in January 2023.
A household in receipt of Fuel Allowance this winter will receive a total benefit of almost €2,000 made up of:
- €924 Fuel Allowance payment for winter 2022/2023
- €400 Fuel Allowance lump sum
- €600 (including VAT) electricity credit
Household Benefits Package
The Household Benefits Package is available to help towards the costs of your electricity or gas bills. It also includes your television licence. Only one Household Benefits Package is payable per household.
The package is available to everyone over 70. It is not means tested and you do not need to be getting a pension. If you are between 66 and 70 you may still get the package if you meet the necessary conditions. You may also qualify if you are under 66 and get Disability Allowance, Invalidity Pension, Blind Pension or Carer's Allowance (if you are living with the person you are caring for).