Energy credits ‘lift thousands of households out of arrears’

THE Government’s energy credits have helped lift thousands of families out of arrears on their electricity bills, according to a new report.

Each household was paid €150 in December and January towards their energy bills, with another credit due next month. The number of electricity customers in arrears increased monthon-month between March and October, before plummeting by almost 35,000 between November and December.

Then there was ‘a substantial decrease in December 2023 with the provision of first Government electricity credit’, the Commission for Regulation of Utilities report revealed yesterday.

The energy credits were issued to all customers in response to rising energy costs after the Ukraine war pushed up gas prices on international markets.

About half of Ireland’s electricity is generated by gas-fired power stations, so when gas prices rise, electricity follows. The number in arrears ballooned from 200,819 last March to a peak of 278,403 in November, before dropping to 243,644 in December.

However, there were around 60,000 more in arrears at the end of last year compared to the start. Energy market expert Daragh Cassidy, of comparison site Bonkers.ie, said: ‘It’s encouraging to see the number of households behind on their energy bills fall. Just over 31,000 fewer electricity customers were in arrears in the three months of July, August and September versus the next three month-period of last year.

He added: ‘Government support in the form of energy credits, a mild winter, and a reduction in energy prices all likely contributed to this. ‘Several suppliers have also set up hardship funds to help those in trouble and this may have helped reduce the numbers in arrears too.’ However, he said the CRU report ‘doesn’t shed much light on how deep someone is in arrears’.

The Department of Public Expenditure, which oversees the credits, was contacted for comment.