As part of the 2025 Budget, the Government has announced that all households will receive a new €250 credit to help them cope with the continued high cost of energy bills this winter.
Even though all the main energy suppliers have announced moderate price decreases over the past year, prices still remain well above normal levels.
For example electricity prices are still around 80% above where they were in 2020 before Covid and then the war in Ukraine wreaked havoc with energy prices. While gas prices are still around double normal levels.
So further help with energy bills has been announced in the form of a new €250 energy credit for this winter.
Here's everything you need to know...
What is the energy credit?
During Budget 2025, it was announced that another energy credit of €250 (which includes VAT) will be applied to all residential electricity bills. This will be paid in two €125 instalments.
The credit will be paid to around 2.3 million homes nationwide to help households cope with high energy costs.
The scheme is being overseen by the energy regulator, the Commission for Regulation of Utilities (CRU), and being rolled out and operated by ESB Networks.
Is the credit for gas, electricity, or both?
The credit is only for domestic electricity customers, who are registered with an electricity supplier in the Republic of Ireland. It’s not available for gas customers or businesses.
Who is eligible for the credit?
The credit will automatically be paid to all domestic electricity accounts.
You're eligible for the credit if you are registered with an energy supplier as either:
- An urban domestic customer: This is classified as DG1 on your electricity bill.
- A rural domestic customer: This is classified as DG2 on your electricity bill.
Do I need to sign up for the credit?
No. Those eligible for the credit don't need to apply for it as it'll be automatically applied to your electricity account.
How will I receive the credit?
The credit will be paid to all domestic electricity accounts by suppliers in the form of a credit on your bill.
You won't get the money by cheque or bank draft for example.
When will I see the credit come off my electricity bill?
The €250 credit will be paid in two equal instalments of €125. One payment will be made before Christmas and one afterwards.
You’ll notice the credits being applied to your bills as follows:
- The first instalment: Between 1st November and 31st December 2024
- The second instalment: Between 1st January and 28th February 2025
You should see a ‘credit line’ on your bill to the amount of €114.68 (this is €125 excluding VAT at 9%). The total payments will be €229.36 excluding VAT across both instalments. The credit will have an identifier on your bill of either ‘Government Electricity Credit 1 or 2’ or an abbreviated version of this depending on your supplier, e.g. ‘Govt. Credit 1’.
The exact date you get your credit will depend on the date that your supplier normally sends you your bill.
Each supplier will have information on their website regarding when exactly the credit will show up on customers’ bills.
If my bill is less than €125 will I lose the remaining credit?
If your electricity bill amounts to less than €125, then the balance of the credit will be carried over onto your next bill so that you can receive the remaining benefit then.
Will I still get the credit if I switch electricity supplier?
Many are concerned that if they switch supplier they’ll miss out on some of the credits. Don’t worry though, you'll still get all the electricity credits you're entitled to.
If you switch to another provider after receiving one of the credits (€125), the remaining credit you're due will be automatically applied to your bill by your new provider.
You won't lose out on any credit by switching and you don't need to stay with the same supplier to get both credits.
What if my account is in credit when I switch?
When you switch, you'll be issued a closing bill from your previous supplier within around a week. And any credit on your account will be used to pay this final bill. If, however, you're still in credit, then the remaining amount will be refunded by the same method you used to pay your bills. You may need to contact your previous supplier to arrange this refund though.
However any Government credits that you are still due will automatically be issued to you by your new supplier as outlined above.
Will I get the credit for any additional homes I have?
The credit will apply to every domestic electricity account.
So, if you have multiple homes in the Republic of Ireland with a domestic electricity account then you'll get the credit for each account.
Will I get the credit if I have pay-as-you-go electricity?
The credit will be available to those using pre-pay electricity meters. Pre-pay electricity customers will be contacted by their supplier by letter or email to explain how they can redeem the credit.
Most pre-pay meters will accept the €125 credit in full. However if you have an older hardship pre-pay meter, special arrangements have been made so that you can receive the credit.
Hardship meters have a limit of €300, and the €125 credit could put the meter over this limit.
If your pre-pay meter has a limit, you’ll be able to redeem the €125 electricity credit over separate top-up transactions, over a few days.
The credit will be broken down into three smaller amounts, such as €50, €50 and €25 over several days. This will be repeated for both of the credits issued.
Will I receive the credit twice if I switch electricity supplier?
No, if you switch energy supplier you won’t receive the credit twice.
What should I do if I don’t receive the credit?
If you’re worried you haven’t received the credit, make sure you check the information on your supplier’s website about when the credit is due to be issued.
You should contact your electricity supplier if you do not receive your credit by:
- 31st January 2025 (first instalment)
- 31st March 2025 (second instalment)
You can find the contact details for your electricity supplier on your most recent bill or statement.
Can I be denied the credits?
Yes, you can.
If you used less than 150kWh (kilowatt-hour) of energy a quarter between 1 July 2023 and 30 June 2024 then you will fall under the low energy threshold. Unfortunately, properties with low energy usage levels do not automatically qualify for the credits and can be denied them.
However, there are certain situations where the low usage threshold does not apply, these are:
- You are on, or are entitled to be on, the vulnerable customer register
- You have a hardship PAYG meter
- You have a microgeneration account
Will I get the credit if I’m a tenant?
If you’re a tenant and you pay your landlord for your electricity, as opposed to paying the energy provider yourself, your landlord should pass each €125 credit onto you.
If there’s a dispute about the credit that can’t be resolved, you can contact the Residential Tenancies Board (RTB) who will help settle the dispute.
Can the credit be used to pay off debt?
Yes. If you have debt on your electricity account, the credit can be used to pay this off.
Be wary of fraud!
As mentioned, you don't need to apply for the credit as it'll be paid automatically.
Be highly suspicious or any texts, calls or emails you receive from anyone purporting to be your supplier in relation to the credit or how to claim it.
Switch and save on your energy
If you’re looking to save more on your electricity bills, why not switch to a cheaper energy supplier?
Not only could you switch electricity suppliers, but also gas.
All energy suppliers in the Irish market are competing for new customers, and as such, they are still offering enticing discounts. So it's worthwhile making the switch.
Simply head over to our energy comparison page to begin reviewing the options available to you from all major energy suppliers nationwide. Whether you’re looking to compare electricity, gas, or dual fuel deals, bonkers.ie has you covered.
You can review the steps involved in running an energy comparison in this guide, and learn what’s involved in the switching process here.
Energy is just one of the many comparison tools we have on our website. You can also compare deals and prices for a range of other products and services, such as broadband, phone and TV deals, insurance cover and banking products.
Have any questions?
Do you have any questions that we didn’t answer about the electricity credit? If so, get in touch with us and we’d be happy to help.
