Urgent Update: Irish Households Face €6 Bill Increase as Energy Aid Cuts

UPDATE: All households in Ireland could soon face a minimum increase of €6 annually on their electricity bills as energy credits are set to be axed. The Commission for Regulation of Utilities has proposed this hike, while both ESB and Eirgrid are seeking an additional €16 per year. A final decision is expected later this year, according to a report by the Irish Sun.

This development comes on the heels of the government’s confirmation that there will be no energy credit payments in the upcoming budget. Energy Minister Darragh O’Brien emphasized the importance of maintaining the lower VAT rate on gas and electricity, which was initially introduced as a cost of living support three years ago. O’Brien stated that the universal energy credits had amounted to a staggering €3.5 billion, significantly impacting funding for other vital measures.

“That level of one-off payments is very significant, and the more you put into that, the less you can invest in medium and long-term sustainable measures to change our energy system,”

O’Brien noted.

The proposed bill increases are intended to support a massive €14 billion investment over the next five years aimed at upgrading Ireland’s energy networks to meet both current and future demand. This is an urgent matter as households across the nation brace for the financial implications of these changes.

In response to the increasing energy costs, O’Brien is also reviewing the Fuel Allowance, a crucial payment designed to assist households with heating costs during winter. The allowance, which is typically paid to one person per household, is set to return soon. Eligible recipients can expect double lump sum payments totaling €924, or weekly payments of €33 over 28 weeks, starting from the last week of September 2025.

The first lump sum is projected to be distributed during the last week of September 2025, with the second payment following in the first week of January 2026. Weekly payments are also anticipated to commence in late September and conclude in April.

To qualify for the Fuel Allowance, applicants must reside in Ireland and cannot receive the allowance if their heating expenses are fully covered as part of their accommodation.

As the government navigates these changes, it is essential for households to stay informed about the potential impacts on their finances. The decisions made in the coming weeks could significantly affect energy costs and support measures for many families across Ireland. Stay tuned for further updates as this story develops.