The government’s new energy credit scheme will see the cost of value-added tax (VAT) will be included, which means that bill payers will save €113.50 when it is introduced later in 2022.
In a memo Cabinet, ministers have been told VAT will now be included in the scheme – bringing an extra saving of €13.50, and a total saving to €113.50.
The Residential Tenancies Board (RTB) will be tasked with settling any dispute involving tenants who believe landlords, who pay electricity bills, are not passing on the saving to them.
Energy Minister Eamon Ryan was tasked with bringing the memo to Cabinet, outlining the legislative path for the scheme which is aimed at easing the financial burden caused by the international energy crisis for homeowners and renters.
The Oireachtas Energy Committee was requested to bypass pre-legislative scrutiny to allow the laws underpinning the scheme pass through to Dáil as soon as possible. The committee is to be given a technical briefing on the energy credit.
The Electricity Costs Domestic Electricity Accounts Emergency Measures Bill is due to go before the Dáil and Seanad in early February, 2022, and it is expected to be passed within a week. It is expected that bill payers will receive the deduction by the middle of March.
The credit will be paid directly to energy suppliers and customers will not have to apply for it.
A mechanism to give the tax credit to people who have pre-paid electricity meters is still being sought, and an announcement on how this will work is expected shortly.
The Government will urge landlords to pass on the saving to their tenants if they are paying the electricity bills on behalf of renters and including the cost in their monthly rent.
LSL News.