Bill payers for extra savings in energy credits after VAT included

THE tax costs are set to be included in the Government’s new energy credit scheme to help reduce soaring household prices – meaning everyone will get €113.50 off when it’s introduced at the end of the year now.

At first, it was thought that the new payment for the electricity bill would be €100 per person paying the bill, but this does not include VAT.

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In a memo sent to the Cabinet today, ministers were told a value-added tax would now be included in the scheme, bringing the extra savings to €13.50 and the total savings being €113.50, Theo Independent.ie.

This program is intended to help homeowners and renters by providing financial assistance with rising energy costs.

Credit increases will be paid directly to energy suppliers and customers will not have to sign up.

Energy Secretary Eamon Ryan will present a memo to the Cabinet today outlining the legislative plan for the scheme.

The bill on emergency measures in domestic electricity accounts will be passed before Dáil and Seanad in early February and is expected to be passed within a week.

The government hopes that once the law is passed, the subsidy will go into effect in mid-March.

Green Party leader Ryan has asked the Oireachtas Energy Commission to bypass the pre-legislative oversight process to speed up the time it takes for legislation related to the plan to be delivered to the Dáil.

The committee will also hold a technical briefing on energy credits.

Secretary Ryan is still working on how to offer tax credits to people with prepaid electricity meters and he is expected to announce how this will work soon.

The government is encouraging landlords to pass on savings to their tenants if they are paying electricity on behalf of tenants as part of their rent.

The Tenant Board will be tasked with resolving any issues involving tenants who believe their landlords are not transferring their savings.

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