Irish households in line for larger electricity bill credit before Christmas

Households are in line for a larger electricity bill credit than the €200 provided earlier this year, but the final figure is yet to be decided upon, The Irish Times understands.

The credit to help with soaring energy costs is set to be paid as part of a package of once-off measures accompanying the budget that could top €2 billion.

Taoiseach Micheál Martin, meanwhile, hinted that further cuts in the costs of State services such as public transport and healthcare will be an important element of the Government’s response to the cost-of-living crisis.

It comes as Energia has become the latest company to announce price increases, with the supplier saying it plans to up the unit price of its electricity by 33.5 per cent and the unit price of its gas by 47.11 per cent from October 7th.

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The move will impact some 160,000 electricity customers and 60,000 gas customers and will add more than €500 on to the average annual cost of both its electricity and gas.

Minister for the Environment Eamon Ryan signalled on Wednesday that a second electricity bill credit would be paid before Christmas, while Minister for Public Expenditure Michael McGrath said it is an “option on the table”.

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Speaking to reporters in Dublin, the Taoiseach refused to be tied down on the sum householders could expect.

However, a Government source said the energy credit will be “of a bigger scale” than the €200 credit earlier this year.

The final figure is yet to be decided upon as the Coalition wants to “get it right” to alleviate energy costs to families.

Mr Martin said the Government would use the upcoming budget “to do everything we possibly can” to support households and businesses experiencing large increases in their energy costs.

He mentioned the proposed public pay deal as “an important measure for one sector” and he said there will also be a “tax dimension”, widely expected to be relief for middle-income workers.

He also suggested there will be cost reductions for State services.

Mr Martin highlighted previous cuts in public transport fares and bringing in free school transport in rural areas as well as a drop in healthcare costs such as the Drugs Payment Scheme (DPS) and hospital charges.

The prospect of an extension of reduced transport fares, further cuts to prescription charges and DPS costs, and a reduction in third-level registration fees are all understood to be under consideration in advance of the budget.

On Wednesday, Cabinet approved a series of energy efficiency measures across the public sector, including reducing office temperatures and ensuring heating is turned off at least one to two hours before buildings close.

Thermostats are to be set at 19 degrees where appropriate, but this guideline will not apply to places such as hospitals.

The public, meanwhile, has been directed to advice offered as part of the Reduce Your Use campaign, which includes a suggestion that households try to limit use of appliances during peak evening hours.

The Taoiseach defended the Government’s issuing of energy conservation advice at a time when people want more detailed information on how it will support them financially in paying their bills, saying: “Energy efficiency is a no-brainer in this situation.”

Mr McGrath earlier conceded that the Government cannot give an “absolute guarantee” that power blackouts will be avoided this winter, but said: “We’re going to do everything possible to ensure continuity of supply.”

Elsewhere, Sinn Féin finance spokesman Pearse Doherty said the package of once-off measures in the budget of some €2 billion “simply won’t cut it”.

He said his party’s alternative budget proposals for such measures will exceed that sum and an idea to cap the cost of household energy bills at pre-crisis levels alone would cost €1.7 billion.