Mattie McGrath (Tipperary, Independent)
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16. To ask the Minister for Communications, Climate Action and Environment if the reduction in VAT from 13.5 % to 9% will be passed onto the customer in relation to the electricity account credit payment of €200 or if it has been retained by the electricity supplier; if each supplier received €200 per account; or if he will confirm the amount that they received; and if he will make a statement on the matter. [36463/22]

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

This was an exceptional measure which used the single eligibility criterion of a meter point registration number, to ensure payments to each domestic electricity account as early as possible this year, without any additional means testing. The scheme included pre-pay customers. The Electricity Costs Emergency Benefit Payment was €176.22, exclusive of VAT as set out in section 5(2) of the Act.

The benefit payment was allocated to billed costs in the first bill issued after 31 March 2022. Suppliers credited domestic electricity accounts through April, May and June. VAT was applied at the date the bill was issued to the customer.

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.

The impact of the reduction of VAT to 9% has resulted in a reduction in the overall bill inclusive of VAT for customers. As the benefit payment was applied excluding VAT this reduction in rate had an impact on the total estimated benefit of €200 which was based on a 13.5% VAT rate as the VAT rate that applied in March 2021.

The Deputy may also wish to note that Frequently Asked Questions are available on gov.ie at: www.gov.ie/en/publication/4ae14-electricity-costs-emergency-benefit-scheme/