Electric Ireland has announced new measures aimed at reducing electricity bills and helping vulnerable customers
Electric Ireland has announced that it is foregoing all profit from its residential electricity business this year, with each of its 1.1 million customers due to receive a €50 credit.
This comes as the company also announced a €2 million increase to its hardship fund, bringing the total to €5 million.
This latest credit is likely to be good news for struggling consumers before Christmas, but when will customers receive the credit?
Relief for customers
Electric Ireland’s decision to give each of its electricity customers a credit is likely to cost the supplier over €50 million when VAT is factored in. However, there is no credit for its gas customers.
Pay-as-you-go customers will see their credit applied to their meters between 20th and 22nd December, while billpay customers will see the credit on their online accounts from 2nd January and on paper bills from 3rd January 2023.
The credit will only apply to households which are existing customers of Electric Ireland as at 19th December 2022.
The increase to the Electric Ireland Hardship Fund is aimed at customers who are struggling to afford their electricity bills in the wake of rising wholesale electricity prices, which are having an effect on customers' ability to afford their energy bills.
The fund is administered by the Society of St Vincent de Paul and the Money Advice and Budgeting Service (MABS), who administer energy credits to vulnerable clients. The scheme only applies to customers who have been with the company for at least 12 months.
Do I need to apply for the credit?
You don't need to apply for the €50 credit or to contact Electric Ireland.
If you're a customer as at 19th December the money will be credited to your account automatically over the next week or two.
And in the unlikely event that you don't use all the credit during one bill cycle, it'll be carried forward onto your next bill.
Reaction
Speaking on the announcement of the new credit, Pat Fenlon, Executive Director at Electric Ireland said:
“2022 has been a very challenging year for energy customers, primarily as a result of increases in international gas prices. We are acutely aware of the pressures that customers face this winter and, recognising these exceptional circumstances, Electric Ireland is forgoing profit from its residential electricity business. Electric Ireland’s residential customers can each expect to receive €50 credit in the New Year.
We are committed to helping any of our customers who experience financial difficulty. As always, we encourage any Electric Ireland customer who has difficulty in paying their energy bill to engage with us and we will work with them to put a manageable payment plan in place.”
Supports in place
There are a number of supports out there for people who are struggling to manage their energy bills.
The Government announced in Budget 2023 that a new €600 energy credit, paid in three €200 instalments, would be applied to all electricity accounts in the country. One has already been applied, while the second one will come into effect in January and the third in March.
There is also an extended moratorium on energy disconnections, a minimum of 24 months for a customer to repay their debt, and the reduced 9% rate of VAT on energy has been extended until the end of February at least.
On top of all this, those on the fuel allowance will also receive an extra €400 lump sum payment.
Better than nothing
While €50 may not put a huge dent in the massive amounts that some customers are paying on their energy bills, it is a nice touch from Electric Ireland just before Christmas. But, it may not really make a difference to some.
The average Electric Ireland customer's electricity bill has gone up by over €900 this year alone. While gas customers will have seen an increase of over €1,000. So many customers will still struggle with energy bills over the coming weeks.
Electric Ireland’s gas customers might also feel aggrieved that they weren’t considered for a credit also.
However, with a spend of over €50 million, it’s hard for Electric Ireland to give more than this amount, or to more customers.
Learn more
If you want to read more about the protections in place for energy customers, you can read our information piece here.
To learn more about the various supports supplied by the government in the Budget, you can take a look at our breakdown of the Budget supports.
If you are struggling to pay your energy bills, read our guide on how to talk to your energy supplier.
Get in touch
Do you think Electric Ireland’s credit went far enough? Or does it not go far enough to help struggling families? Let us know on Facebook, Twitter, or Instagram.
