Dáil Éireann Debate, Thursday - 2 June 2022
166. Deputy Neale Richmond asked the Minister for the Environment, Climate and Communications if his attention has been drawn to the fact that due to the VAT reduction as of 1 May 2022 many ESB customers are not receiving the full €200 electricity bill credit but €192.08; if he will take steps to address this; and if he will make a statement on the matter. [28619/22]
Amharc ar fhreagra167. Deputy Cathal Crowe asked the Minister for the Environment, Climate and Communications if he will address concerns (details supplied) relating to the electricity credit issued to house holders; and if he will make a statement on the matter. [28644/22]
Amharc ar fhreagraI propose to take Questions Nos. 166 and 167 together.
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 is operated by the Distribution System Operator (ESB Networks) and electricity suppliers with oversight by the Commission for Regulation of Utilities (CRU).This is an exceptional measure which uses 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 includes pre-pay customers.The Electricity Costs Emergency Benefit Payment is €176.22, exclusive of VAT, as set out in section 5(2) of the Act. The benefit payment is being allocated to billed costs in the first bill issued after 31 March 2022. Suppliers began applying the benefit payment in April and May, and will credit remaining domestic electricity accounts through June. VAT is applied at the date the bill is 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% will result in a reduction in the overall bill inclusive of VAT for customers. As the benefit payment was applied excluding VAT this reduction in rate has 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.Queries in relation to individual cases are a matter for the service provider.The Deputy may also wish to note that Frequently Asked Questions are available on gov.ie at: https://www.gov.ie/en/publication/4ae14-electricity-costs-emergency-benefit-scheme/
