Government Electricity Allowance

An Electricity Costs Emergency Benefit Scheme was signed into law on March 2nd 2022. This scheme will give a Government Electricity Allowance to all Domestic Electricity Customers in Ireland between April and the end of June 2022.
This government electricity allowance will show on bills as a credit of €176.22. (ex VAT). (This will work out the same as deducting €200 including VAT)


Electricity Costs Emergency Measures Act

The Electricity Costs (Domestic Electricity Accounts) Emergency Measures Act 2022 was enacted at the beginning of March, allowing the scheme to become operational by the end of March, with payments appearing on customer bills as they are then issued from April onwards .
It will show on bills as “Government Electricity Credit”.

Approximately 2.1 million domestic electricity account holders will benefit from the Government Electricity Credit Scheme for a one-off credit of €176.22 on their electricity accounts.
The payment to all Domestic Electricity Customers will be automatic and people will not need to apply for it. The credit should start showing on bills from April onwards. A credit item will appear on electricity bills with an amount of €176.22 with the identifier ‘Government Electricity Credit’ or an abbreviated version of this.

The credit will be €176.22 (excluding VAT.) This means that the total impact for each domestic electricity account will be €200. (VAT on electricity is 13.5%). See VAT Rates in Ireland here.

Prepaid customers will get a full €200 credit that can be entered on their accounts and available to pick-up as a vend once notified by their supplier. (More details below).


It will be paid to millionaires and people on welfare. (Labour and the Social Democrats both argued that the money should be better targeted. )
Maybe the millionaires will donate their payment to charity ?


When Will the Government Electricity Allowance be paid?

The €176.22 credit will be channelled through ESB networks to all the energy suppliers, who will then pass on the discount to customers. The Commission for the Regulation of Utilities (CRU) will have oversight of the scheme.


The payment will be made to all domestic electricity accounts, including pay as you go customers. The credit must be applied to all customers between 1st April 2022 and 30th June 2022.


Credit On Prepayment Meters


It is to be implemented for prepayment customers as a full €200 credit that can be entered on their accounts and available to pick-up as a vend once notified by their supplier.
To redeem the government 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 €200government electricity credit when entered.
Some meters have a maximum vend of €100 – so people with those type of meters will have to collect the credit in 3 stages as shown below:

  1. Customer purchases a top up of €10 and €90 of the Government Electricity
    • Credit will be applied for a total top-up of €100.
  2. Customer purchases a top up of €10 and €90 of the Government Electricity
    • Credit will be applied for a total top-up of €100.
  3. Customer purchases a top up of €10 and €20 of the Government Electricity
    • Credit will be applied for a total top-up of €30

Switching Electricity Provider

The provider you are with on March 29th 2022 is responsible for paying you the government credit. If you switch suppliers before the credit is paid – you should be paid by bank transfer or cheque by the electricity supplier you were with on March 29th.


Other Help With Fuel Bills

Thousands of households already get help towards fuel bills with the Winter Fuel Allowance . The fuel allowance amounts to €924 a year for eligible households.
Due to increasing energy costs – the government has already paid an extra €125 to all fuel allowance recipients in the week beginning 14 March 2022.
A further fuel allowance payment of €100 is due to be paid out in May 2022.


Under the Household Benefit Scheme, about 400,00 people also receive €35 a month towards electricity OR gas all year round. That works out at €420 a year per claimant. Some of these people will also qualify for the Fuel Allowance.

For a household getting both the fuel allowance and the Household Benefit Scheme – they will receive €1344 in a full year (2021/22) . This newly announced €200 payment will bring their total payments from Government towards fuel bills to €1669 in a year.

VAT on Energy Bills :


The VAT on gas and electricity looks set to be temporarily cut from 13.5 per cent to 9 per cent under plans due to be brought to Cabinet in April/May 2022. See VAT Rates Ireland


See where to get the Cheapest Electricity Here


Gas Price comparison Here


Problems Paying Energy Bills?

If you are facing difficulty paying your electricity or gas bill, you should contact your supplier and seek to come to an agreement on a payment plan. Energy suppliers must arrange practical payment plans to assist domestic customers who have built up arrears. Any repayment arrangements must take into account the customer’s circumstances and must be reasonable and affordable.

The Money Advice and Budgeting Service (MABS) is the State’s money advice service, guiding people through dealing with problem debt. MABS runs a Helpline (0818 07 2000) Monday to Friday, 9am to 8pm)


Money Saving Tips

Grants for Heat Pumps and Insulation

Gov.ie

Northern Ireland Emergency Fuel Payment Scheme