Written answers

Wednesday, 18 May 2022

Department of Communications, Climate Action and Environment

Energy Policy

Photo of Mark WardMark Ward (Dublin Mid West, Sinn Fein)
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55. To ask the Minister for Communications, Climate Action and Environment if the full €200 reduction off energy bills was deducted; if VAT was taken into account and therefore a lesser amount was deducted; and if he will make a statement on the matter. [25301/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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The Electricity Costs (Domestic Electricity Accounts) Emergency Measures Act 2022 established a scheme for the making in 2022, of a once-off Electricity Costs Emergency Benefit Payment to each domestic electricity account, having regard to the exceptional rise in energy prices. The credit of €176.22 (excluding VAT) which suppliers began applying in April, will be applied to remaining domestic electricity accounts through May and June, and includes prepay meters.This Scheme is in addition to: the Government’s ongoing measures to address energy poverty and the protection of vulnerable customers; the measures introduced in the Budget; and, more recent measures announced by Government to deal with rising energy costs.

The scheme is operated by the Distribution System Operator (ESB Networks) and electricity suppliers with oversight by the Commission for Regulation of Utilities.

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.

The Deputy may wish to note that regular updates on the electricity credit, including frequently asked questions, are available on gov.ie at: www.gov.ie/en/publication/4ae14-electricity-costs-emergency-benefit-scheme.

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