Every household to get €100 off their electricity bill in new year

Every private house in the country will get €100 credit off their first electricity bill of the New Year, under government plans expected to be announced next week.

The state intervention – which is expected to cost more than €170m – is aimed at tackling the financial burden of rising energy prices as inflation continues to increase.

The one-off €100 electricity credit will cover January and February and will be deducted from domestic household bills in March.

All two million homes in the country, regardless of income, will receive the credit.

The annual rate of inflation rose to 5.3% in November, its highest level in 20 years. 

There have been 35 increases in energy prices since the start of the year. 

The credit will be applied to domestic bills only - no commercial premises will be eligible.

The measure is expected to cost in the region of €200m and will come from existing resources within Minister Eamon Ryan’s Department of Energy budget.

Tánaiste Leo Varadkar  said the Government was examining ways to reduce energy costs for households.

“We’d hope to be in a position to make a decision on that in the near future, so that people will see the effect of that in the bills that they receive in the new year, being a little bit less than perhaps they expected,” Mr Varadkar said.