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Government Electricity Credit

What is the Government Electricity Credit?  

A €400 million Scheme has been approved by Cabinet to credit all domestic electricity customers with €200 (inc. VAT) in 2022. Approximately 2.25 million account holders will benefit from the scheme with a one-off, exceptional payment to their electricity accounts. This is one of a range of measures being taken to mitigate the impact of rising energy costs. 

The scheme will apply to all domestic accounts, including pay as you go customers.  

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) and electricity suppliers in accordance with the relevant Act and regulations. ESB Networks will make payments to energy suppliers, who in turn will credit all their domestic electricity account holders with €176.22 (exc. VAT). 

When will I receive the credit? 

You will see the credit line item of €176.22 (exc. VAT) on your bill along with a message about the credit from April onwards. We anticipate that we will start crediting electricity accounts from the 8th April 2022.  The credit has to be applied to your bill no later than 30th June 2022 and will be incorporated into your existing billing cycle. 

What do I have to do receive the credit? 

All domestic electricity customers will receive the credit automatically and do not need to apply for it. The supplier that you are registered with at the time of ESBN transferring the exchequer funds will include the credit in your bill. 

Why have electricity costs risen? 

All suppliers have seen increased electricity costs, due to the unprecedented increase in wholesale gas and electricity costs in recent months.  

Why not Gas or LPG? 

While all homes have electricity, the heating fuel varies, so it would be difficult to fairly compensate customers for their heating fuel costs. 

What if I owe money on my account? 

The payment will effectively credit your account and any amount owed will be reduced. 

I’m thinking of switching my electric provider should I hold off? 

You will receive your credit from the supplier you were with on the effective date of 29 March 2022. If you do leave Flogas after this date and before you have received the credit then you will receive the credit on your final bill. Change of supplier will not impact your right to receive the credit.

Does the credit carry over to the next bill if I don’t need it all on this bill? 

The credit will appear on your bill and be allocated to either current or future usage depending on your account balance at the time of allocation. 

What if I have a PAYG meter? 

Arrangements have been put in place for customers using hardship PAYG meters, around how you will receive the credit. Some meters will have to the credit applied in three different instalments over a number of days but we will be communicating directly with affected customers in advance of the credit being applied. 

What if I pay my landlord for my electricity? 

For operational reasons the scheme can only credit the domestic electricity account holder. In cases where a tenant is not the account holder, the expectation is that the landlord will pass the credit on to the tenant. 

I am due to move house / apartment, the account is in the name of “the resident” do I get the credit? 

You should contact us to activate your account as soon as practically reasonable upon your purchase/rental of a property. If the account activation is requested in advance of the fund allocation date, the credit will be automatically applied to your account. 

My house isn’t ready yet, the account is not in my name it is in the name of the builder how do I get the credit? 

For operational reasons the scheme can only credit the domestic electricity account holder. Only the account holder who is registered to the MPRN at the time of fund allocation will receive the credit, each MPRN will only receive one credit, you may want to discuss this with your builder if the date is of concern to you. 

I am applying for a new connection, but it won’t be active until end March do I get the credit? 

Only accounts registered at the time of fund allocation will receive the credit, if there is an outstanding fit meter/registration request that completes after the fund allocation date you will not receive the credit.

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.”

Are there additional supports available to help with electricity/heating costs? 

Yes. The Department of Social Protection has a number of supports available including: 

Fuel Allowance 

Households Benefits Package 

Exceptional Needs Payments (SWA)