As part of Budget 2025, the Government has announced all households will receive a €250 credit to help them cope with the continued high cost of energy bills this winter.
Even though all the main energy suppliers have announced moderate tariff cuts over the past year, prices still remain well above normal levels. Electricity prices, for example, are still about 80% above where they were in 2020 before covid, and then the war in Ukraine. Gas prices are about double what would be considered normal levels.
The new credit of €250 — which includes VAT — will be applied to all residential electricity bills and will be paid in two €125 instalments. Some 2.3 million homes will benefit.
The scheme is being overseen by the energy regulator, the Commission for Regulation of Utilities (CRU), with the measures being rolled out and operated by ESB Networks.
Daragh Cassidy of independent price comparison and switching site Bonkers.ie says the credit is only for domestic electricity customers who are registered with an electricity supplier in the Republic of Ireland. It is not available for gas customers or businesses.
Those eligible for the credit do not need to apply or sign up for it, as it will be automatically applied to your electricity bills.
“The credit will be deducted from domestic electricity bills by suppliers in the form of credit,” says Mr Cassidy. “The credit is not in the form of a cash payment or bank draft… One payment will be made before Christmas and one afterwards.”
The first instalment will land between December 1 and December 31, 2024, with the second one appearing on electricity bills between January 1 and February 28, 2025. The exact date you get your credit will depend on the date your supplier normally sends you your bill.
You should see a credit line on that bill, to the amount of €114.68, which is €125 excluding Vat at 9%. The total payments will be €229.36, again excluding the Vat, across both instalments. The credit will have an identifier of either ‘Government Electricity Credit 1′ or ‘2’ or an abbreviated version of this depending on your supplier, for example, ‘Govt Credit 1’.
Each supplier will have information on its website regarding when exactly the credit will show up on customers’ bills. Don’t worry if your bill comes to less than €125; you won’t lose out. In that case, the balance of the credit will be carried over onto your next bill so you can receive the remaining benefit then.
“Many are concerned that if they switch supplier they’ll miss out on some of the credits,” says Daragh Cassidy. “Don’t worry though, you’ll still get all the electricity credits you’re entitled to.
“If you switch to another provider after receiving one of the credits, the remaining credit you’re due will be automatically applied to your bill by your new provider.”
You will not lose out on any credit by switching and you do not need to stay with the same supplier to get both credits. When you switch, you will be issued a closing bill from your previous supplier within about a week. Any credit on your account will be used to pay this final bill.
If, however, you are still in credit, then the remaining amount will be refunded by the same method you used to pay your bills. You may need to contact your previous supplier to arrange this refund though.
Any Government credits you are still due will automatically be issued to you by your new supplier as outlined above. And no, you will not get the credit twice if you switch.
The credit will apply to every domestic electricity account, which means if you have multiple homes in the Republic of Ireland with a domestic electricity account, you will get the credit for each one.
What about pay-as-you-go electricity? They do not lose out. Pre-pay electricity customers will be contacted by their supplier by letter or email to explain how they can redeem the credit.
“Most pre-pay meters will accept the €125 credit in full,” says Daragh Cassidy. “However, if you have an older hardship pre-pay meter, special arrangements have been made so that you can receive the credit.”
Hardship meters have a limit of €300, and the €125 credit could put the meter over this limit.
If this is the case and your pre-pay meter does have a limit, you will be able to redeem the €125 electricity credit over separate top-up transactions, over a few days. The credit will be broken down into three smaller amounts, such as €50, €50 and €25. This will be repeated for both of the credits issued.
If you are worried you have not received the credit, make sure you check the information on your supplier’s website about when the credit is due to be issued. You should contact your electricity supplier if you have not received the first instalment by the end of January and/or the second instalment by the end of March.
You can find the contact details for your electricity supplier on your most recent bill or statement.
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any texts, calls or emails you receive from anyone purporting to be your supplier in relation to the credit or how to claim.
Note too there are circumstances in which you might be denied the credit. If you used less than 150 kilowatt-hours of energy per quarter between July 1, 2023, and June 30, 2024, then you will fall under the low energy threshold. Unfortunately, properties with low energy usage levels do not automatically qualify for the credits and can be denied them.
However, there are certain situations where the low usage threshold does not apply: if you are on, or are entitled to be on, the vulnerable customer register, if you have a hardship pay-as-you-go meter or you have a microgeneration account.
What about rental properties? Will you get the credit if you are a tenant? That depends. If you are a tenant and you pay your landlord for your electricity, as opposed to paying the energy provider yourself, your landlord should pass each €125 credit onto you. If there’s a dispute about the credit that cannot be resolved, you can contact the Residential Tenancies Board, which will help settle the dispute.
Note too, that if you are in arrears on your electricity bill, the credit can be used to pay this off.
Finally, be wary of fraud. Criminals always scrutinise the budget carefully, looking for new ways to scam people. As far as the energy credit goes, it is important to remember it will be paid automatically.
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any texts, calls or emails you receive from anyone purporting to be your supplier in relation to the credit or how to claim it
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