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THE COST OF living crisis is now the single biggest worry for the public according to some opinion polls.
The scale of the problem was brought home by the latest Consumer Price Index, which has measured prices at an average of 5.5% higher than the same time last year.
The rising cost of living is being driven primarily by increased energy costs and many other price rises are also being pushed up by this.
The “centrepiece” of the government’s newly announced measures to combat the crisis is the €200 energy credit for households. What is this credit and who will benefit from it?
How does the credit work?
The once-off credit will be automatically applied to all electricity customer accounts in the March/April billing cycle, so you won’t have to do anything to avail of it.
The government has said that giving a credit to people’s electricity accounts was the quickest and most straightforward way to help all households.
The Commission for the Regulation of Utilities is in charge of overseeing the scheme and it is operated by ESB Networks.
ESB Networks will make payments to energy suppliers who will in turn credit all their domestic electricity account holders with the €200.
How much exactly is this energy credit?
As of last night, the credit is to be €200 including VAT. Before Christmas the plan was that a credit of €100 excluding VAT would be applied in March.
However, the inflationary situation is changing so quickly that the government was forced into increasing the credit before the previously announced credit even took effect.
Excluding VAT the value of the new payment is €176, so the move isn’t quite a doubling of what was previously announced.
The total cost to the exchequer of the energy credit will be €378 million. Before the increase, the credit was slated to cost €215 million.
So this is a once-off credit, as in just one bill?
If your bill is more than €200 then the credit will be eaten up in a single bill, yes.
If however your bill is less than the €200 credit then the balance of the credit will be carried over into the next bill and you’ll get the benefit of the rest of it then.
Basically each customer account will benefit from €200 credit only, whether that’s over one billing cycle or more.
It is estimated that about 2.1 million account holders will benefit from the scheme
Does that mean every customer gets exactly the same credit?
Yes that’s right, the credit is not means tested and the only requirement to benefit from it is to have an electricity account.
This is something that has been criticised by opposition parties and some advocacy groups.
Sinn Féin, for example, has said it would have kept the original energy credit at €100 but also given people an additional cash payment based on their income.
The proposal would see people earning up to €30,000 receive a €200 cash payment and people earning €30,000-€60,000 receive a €100 cash payment.
The Social Democrats have also argued that the €200 energy credit should not apply to holiday homes.
So some people may benefit twice from the credit?
Yes, if someone has a holiday home and is therefore an electricity customer in two properties then they would benefit from the credit twice.
The government has argued that the credit is being paid through utility companies who don’t know if a property is a holiday home or not, so there’s no easy way of just cutting holiday homes out.
I use a prepay meter and don’t have a bill, will I benefit?
Yes, the government has said that pay as you go customers will benefit from the scheme as their prepaid cards should be credited with the €200.
I pay electricity through my rent, will I get the credit?
The credit is reflected on the account holder’s bill, so if that account holder is the landlord it is they who will see the benefit.
There might therefore be a discussion to be had between a landlord and a renter in the event that electricity is included in the monthly rent.
The government has said that it is working with the Residentials Tenancies Board (RTB) to publicise details of the scheme so that renters who hold accounts benefit.
The department also points to the RTB’s disputes mechanism is available should a dispute arise.
I’m a gas customer with Electric Ireland, will I get a credit on my gas bill?
No, the credit is for electricity accounts only, so whichever electricity supplier you have that’s where you should see the credit reflected.
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Why not just abolish the USC 11 years on from Enda Kenny’s 2011 election promise.
Utility, fuel, mortgage interest rates, childcare, rents, motor insurance, home insurance, paying 40% tax at 36k to name a few.
People earning what is perceived to be a decent wage are fawking broke at the end of the month and one of payment of €200 might help for one month but what about the other 11?
There needs to be a substantial change and to make that happen the only logical reason is to abolish the USC.
It was supposed to be a short term solution. It has been 11 years.
@Fay Moynihan: the problem is that USC generates about €4.5bn a year for the exchequer. Where do we get €4.5bn from to plug the gap?
@Fay Moynihan: asking for a friend but where do you expect the shortfall to come from…?
@GrumpyAulFella: They’ll make it off the VAT on the fuel and alcohol prices as well as the increased corporation taxes.
@GrumpyAulFella: taxing the bailed out banks, vulture funds and enforcing the correct corporate tax bands while closing all other tax avoidance loop holes will achieve that and more.
@Luke: good question and very few have a proper answer. USC actually closes a tax loophole that the high earners use for income tax by writing off assets and pension contributions so keep this for high earners but should be got rid of for under 30k.
@GrumpyAulFella: What did the Goverment do for this money before USC was introduced ?
@Fay Moynihan: you didn’t actually believe Enda Kenny.
@GrumpyAulFella:
Suspend and review the many tax avoiding/evasion/dodging/and whatever your having yourself loopholes would be a start.
@GrumpyAulFella: Where was it got before that ?
@GrumpyAulFella: I love the ‘where do we get the €4.5bn from now’ argument. Who cares? The supposed finest minds in the land are TDs supported by MORE finest minds in advisors, no one cares where it comes from, it’s their job, do the work, find it somewhere else. Also, BTW, all that USC money? It’s badly needed by people and would be instantly spent again creating more vat spend and creating more jobs. It’s not hard. Pass level Economics tells you that’s how it’d work. The reality is theres no appetite to find an alternative, the USC is an easier target.
@Fay Moynihan: and how do you expect to replace the money that the usc brings in.
This should be restricted to primary home accounts only, not a multiple payment to those with holiday homes.
@Noel_Random: But those people you refer to are paying ‘multiple’ Local Property Taxes. are they not? Would you also agree that this be restricted to the primary home?
@sean o’dhubhghaill: yes because Most second homes are rented out and if not then there is f all electricity being used… Or is that too logical
If they reduced vat on electricity then is would be a much fairer way as holiday home would not recieved the full 200
@Noel_Random: and how do you think you can distinguish a primary house to a holiday one
Why not give €200 to every house hold to use as they need, this handing directly to big company’s doesn’t sit well with me,
@kevin mc cormack: Because then you’d have people giving out about the people that spend the 200 on drink and cigs (had to change that from the “f” word) and whatever. Fine Gael couldn’t be having that!
@kevin mc cormack:
Its 200 euros including Standing charges, PSO levy, Carbon tax then comes the VAT.
But 200 euros including VAT sounds better.
Government would have made around 400m in tax on fuel in January but spending 376m on a credit is supposed to be some sort of generous rebate.
Well they can shove their”centrepiece “ where the sun don’t shine. SCRAP USC. Reduce fuel costs. Top brains in this country, paid exorbitant salaries and this is what they come up with?!?!. And what do the masses do??? Exactly as they hope- we start arguing amongst ourselves, blaming everyone else. Let’s all keep doing what we always do-forget at polling time. I won’t forget. Bail banks out while we try to “ shop around” tighten our belts” and keep food on the table and a roof over our head. I’m so angry.
@Tracey Montgomery:
Agree. I think irelands been here before.
Its all going to end badly AGAIN
They make very little difference to the average wage earner.
The government’s sky rocketing cost of living solution is a 200€ your PAYE tax refund. LMAO
The government laughing at the Irish people take it n shut up
Sinn Féin said, Sinn Féin said…
I can’t wait for Sinn Féin to get into power to see how they deal with the realities of governing.
They were dising the plan yesterday before it was even announced.
@Stanley Marsh: maybe because they knew that the likes of Mr €402,000 Paul Reid and Micheal 3 houses Martin are gonna get this ‘ hardship’ aid.
@Stanley Marsh: yes just look at northern Ireland people have similar financial struggles there.
@Stanley Marsh: “Before it was even announced”!!, The dogs in street knew what was coming didnt need a crystal ball. They were being leaked for days
@Stanley Marsh: can’t wait for all the cheap diesel and all the other free stuff.
@John Mulligan: only if you don’t want to work hard
My holiday home is in Costa Rica will i be entitled to €400
get rid of the USC , 14 years bleeding people, the USC was never a profit gaining exercise, it was to bail out banks , the banks are now back making billions while we are being charged the highest interest rates in Europe
They are forcing people to pay for their electricity!!!!
@Jonathan: Don’t worry – its not your TV licence
Where’s the Q&A for “I live off-grid and generate my own electricity, can I have €200 please….?”
@Reuben Gray: I don’t by the way, just being facetious.
They were Flaging it was going be to be doubled Good PR I’d say Like they said The Pension was going to increase By Five Euro but A lot of People only got Four Euro Fifty Cent More misleading PR
Genuine question: What did we do before the USC?
@Boksburg Girl: Higher income tax rates
@Thomas O’ Donnell:
Not true. It was brought in as an extra tax after the crash.
@Boksburg Girl: Had extra money in our pocket.
@Boksburg Girl: we had what was called a ‘health levy’ which was about 4-5% if I remember correctly.
@Boksburg Girl: We used to pay Income Levy, which by the way was also a so called TEMPORARY TAX. So USC was basically another TEMPORARY TAX to replace the previous one : )
Electric Ireland recently gave me €200 to stay with them for another year (I’m with them over ten years now)
@Peter: Energia work out about 600 cheaper for me. But what I dont understand is why I pay carbon tax on my electricity when Energia declare it be 100% from renewable sources.
@Juniper: Was wondering the same recently
@Juniper:
Interesting! You should contact them about it
@Juniper: Do you honeslty believe that when there is no wind blowing and the sun isn’t shining that your electricity is coming from a renewable source regardless of who your supplier is. Energia have to purchase the electricity from non-renewable sources (gas, oil) during those times.
55% of homes here in my area are holiday homes. Also there is NO bus.
In rural Ireland we pay a higher energy rate to begin with. Thanks a lot!
Very few in the middle class, that’s who. Want to know why FFG allow vulture funds in and go out of their way to keep property prices high? https://youtu.be/BXTPzFSx6oI
Russel has some interesting things to say..
When is the payment due.
@Patabake Kennedy: April as far as I know.
@Patabake Kennedy: March/April billing cycle, with any surplus,if any, being carried over to May/June cycle.
@Franny Ando:
April 1st
It doesn’t really matter of with or without vat. The next bill will be 200€ less and that’s all what is important.
Why not in the Jan/Feb billing cycle? It’s Winter that the bills are highest…
I’ll take the €200,thanks very much!
Is it €200 per person or per home? Trying to figure out if I get a credit on my holiday home but i haven’t seen this cleared up anywhere?
@Oisin Murphy: per electricity account
Donegal is where the sun don’t shine.
I bet you not many consumers will have a bill under 200
This is a disgusting example of irish politics. I don’t need this bribe. A much bigger amount could be given to those who really need it. I’m a pensioner, I have enough at the moment luckily.
Tony Brady
This is a disgusting example of irish politics. I don’t need this bribe. A much bigger amount could be given to those who really need it. I’m a pensioner, I have enough at the moment luckily.
Tony Brady
0879480482
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