Government is acutely aware of the impact that the recent increases in global energy prices is having on households and throughout 2022 introduced a €2.4 billion package of supports and as part of Budget 2023 has introduced a package of once off measures worth €2.5 billion. This includes a new Electricity Cost Emergency Benefit Scheme through which €550.47 (exclusive of VAT) is being credited to each domestic electricity account in three payments of €183.49 (exclusive of VAT) in each of the following billing periods - November/December 2022, January/February 2023, and March/April 2023. The estimated cost of this scheme is €1.211 billion.
The payment is applied to domestic electricity accounts which are subject to distribution use of system charges at the rate for urban domestic customers (DG1) or the rate for rural domestic customers (DG2). This includes accounts with pre-pay meters. The scheme uses the single identifier of the Meter Point Registration Number (MPRN) to ensure that payment can be made to those accounts automatically and without application or means testing.
Despite this advantage, the scheme does have limitations. While one credit is applied per domestic MPRN there are cohorts such as households on commercial connections that did not receive the payment.
Along with the Electricity Cost Emergency Benefit Scheme Budget 2023 also introduced measures including:
- €400 lump sum payment to Fuel Allowance recipients
- €200 lump sum payment for pensioners and people with a disability getting the Living Alone Increase
- €500 cost of living lump sum payment to all families getting Working Family Payment
- double payment of Child Benefit to support all families with children
- €500 cost of living payment for people receiving Carer's Support Grant will be paid in November
- €500 lump sum cost of living disability support grant will be paid to all people receiving a long term disability payment
Budget 2023 also announced the introduction of a new Rent Tax Credit: Rent Tax Credit (revenue.ie)
Any customer that is in need of additional support may apply for an Additional Needs Payment provided by the Department of Social Protection, who have a need for financial assistance to facilitate their continued energy supply. Every effort will be made to ensure that these vulnerable individuals in financial distress, and who qualify, receive an Additional Needs Payment on the same day or as soon as possible where it relates to electricity and heating expenses.
On 13 December, Government approved a new Energy Poverty Action Plan, which provides for the establishment of a €10 million fund to further support people in, or at risk of, energy poverty this winter and into 2023, including people on PAYG meters. The fund will provide a further safeguard in addition to the supports from suppliers and the Additional Needs Payment operated by the Department of Social Protection.
Currently my Department is considering a range of options to target this fund to vulnerable groups including those in mobile homes.
The Money Advice and Budgeting Service (MABS) is also available to provide budgeting advice and advocacy support.
