Budget 2025: When Is The Payment Date for Energy Credits?
As part of Budget 2025 all homeowners will receive a €250 energy credit. It will be paid in 2 instalments of €125. The first payment will be made before the end of 2024, in either November or December, while the second will be made in the new year. The credits are part of a package designed to help with the cost of living crisis and rising energy bills.
When Are The Electricity Credits Paid?
The €250 electricity credit will be paid in 2 instalments of €125 over the coming months:
- November or early December
- January
The credits are part of an overall package designed to help homeowners manage the cost of living crisis and rising energy bills, with winter months in particular putting a financial strain on homes due to high heating costs.
The credits will be automatically applied to your energy bill by your supplier and will also apply to those on PAYG meters.
This year's credits are less than in 2024 when homeowners received a €450 electricity credit which was paid out over three months from late 2023 into early 2024.
Are There Credits for Gas Customers?
No. There are no credits available for residential gas customers, with gas bills in fact set to rise due to the increase in the Carbon Tax.
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Is There More Help With Energy Costs in Budget 2025?
In addition to the new electricity credit, as part of the Budget 2025 spending plan to help households with their energy costs, the following were introduced:
- Fuel Allowance
More people can now qualify for the fuel allowance, and people already receiving it will get another once-off payment of €300 in November 2024. - VAT
The 9% VAT rate on energy will remain until next year. - Living Alone Allowance
An additional €200 will be paid to recipients of the Living Alone Allowance.
Those who qualify for additional payments are also entitled to the €250 electricity credits, meaning it could be possible to make savings of over €500 this winter on home energy bills.
Are My Energy Bills Going To Be Lower This Winter?
While the new electricity credits will offer some welcome relief to households struggling to pay their bills, there were also announcements in relation to increases in charges and levies that will increase average energy bills.
Increases to the following were announced as part of Budget 2025:
PSO Levy
The PSO Levy for 2024/25 will increase from zero to €3.23 (excluding VAT) per month, or €38.76 per year for households customers.
The subsidy is charged to all electricity customers in Ireland to support electricity generation from sustainable and renewable sources and given the falling price of wholesale electricity, the CRU has decided to raise the levy to maintain this financial support.
Carbon Tax
The rate of carbon tax levied on fossil fuels will increase by €7.50 to €63.50 per tonne of carbon dioxide emissions as part of measures announced in Budget 2025.
This increase will add €16.86 to a typical annual gas bill.
Network Charge Increases
While not strictly part of Budget 2025, it was announced earlier this month that network charges for electricity would increase as set out by the CRU.
These charge increases are expected to add €8.42 per month to domestic electricity bills, or €101.04 per year.
It is hoped that providers will lower unit prices to absorb the cost of these increases rather than pass them on to their customers.
Have Energy Costs Come Down in Ireland in 2024?
While the cost of electricity in other EU nations has reduced over the last year, electricity prices in Ireland remain very high.
The latest figures from Eurostat indicate that Ireland's electricity prices have increased by almost 70% since 2020 from €0.2616/kWh to €0.4437/kWh in late 2023 making Ireland's electricity the highest across the EU.
Source: Eurostat
Last Updated: July 2024
As of September 2024, the average annual electricity bill for an Irish home is €1,374 on a standard rate, 24hr urban price plan.
Given the sustained high cost of energy in Ireland and the financial pressure it puts on households, Budget 2025 contains a relief package similar to that in Budget 2024 to help reduce this cost. In particular, during the colder winter months when these energy schemes are most necessary.
What Can I Do To Reduce Electricity Costs?
While government initiatives and spending plans are a much welcomed aid in dealing with high energy costs, there are steps you can take as an individual to help reduce your electricity bills.
- ⚡ How To Reduce Your Electricity Costs
- Switch energy suppliers every 12 months to avail of discounts and introductory offers.
- Study the market to see who is the cheapest electricity supplier.
- Retrofit your home with the help of SEAI grants.
- Learn more about energy consumption in your home and adopt more energy efficient habits.
- Invest in renewable energy sources such as solar panels to offset your energy costs.
- Install a heat pump to reduce heating costs.
Read More of Our Grants and Schemes Articles
Learn more about the Household Benefits Package.
How to apply for the Disability Allowance.
Grants for Windows and Doors.
How to apply for the Warmer Home Scheme.
How can the Household Budget Scheme help you manage your home bills?