Written answers

Thursday, 28 May 2026

Department of Environment, Community and Local Government

Budget 2027

Photo of Paul MurphyPaul Murphy (Dublin South West, Solidarity)
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195. To ask the Minister for Environment, Community and Local Government if electricity credits will be included in Budget 2027; and if he will make a statement on the matter. [39411/26]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal East, Fianna Fail)
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The electricity and gas retail markets in Ireland operate within an EU regulatory regime wherein these markets are commercial and liberalised. The Commission for Regulation of Utilities ended its regulation of retail prices in the electricity market in 2011, and in the gas market in 2014. Price setting by electricity suppliers is, therefore, a commercial matter for the companies concerned.

Government is deeply aware and concerned about the pressures placed on households and businesses by high energy costs.

The Government has taken, and is taking, action to help households and businesses with the cost of fuel and energy. At this point, the €750 million intervention by the Irish Government is one of the more significant in the EU. This package was announced following significant engagement with industry representatives.

The Government took other actions in Budget 2026 to provide significant supports aimed at helping households with energy costs which included:

  • an extension of the 9% VAT rate currently applied to gas and electricity, saving households up to €100 per year;
  • enhanced social protection payments, including an increase to the Fuel Allowance rate to €38 per week and an expansion in the eligibility rules; and
  • a record allocation of €640 million for the Sustainable Energy Authority of Ireland retrofit schemes.
It is important to note that the Department of Social Protection can also provide support through the Additional Needs Payment to help households meet expenses, including those who face difficulties with fuel bills.

A cross-Government National Energy Affordability Taskforce (NEAT) was established last June to identify and implement measures to enhance energy affordability for households and businesses. The first report of NEAT, published last November, helped to inform key aspects of Budget 2026. The NEAT is now preparing an Energy Affordability Action Plan that will be completed in Q3 of this year.

Electricity credits were always envisioned as a temporary, emergency measure. While necessary at the peak of the energy crisis, they are not fiscally sustainable nor do they reduce the drivers of cost in the energy sector.

There are no decisions made yet in respect of Budget 2027.

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