Government Launches Measures To Tackle Energy Costs

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As energy and fuel costs continue to rise the government is to launch a number of measures to support consumers.

A €200 credit on electricity bills will begin to be delivered from next month. The €200 credit will be listed on people’s bills as a €176.22 credit but the full discount will be €200 when VAT is applied.

For some customers it could be May or June before it appears on their account depending on their billing schedule.

Customers on prepay meters will get it from next month in three credits broken into two €90 payments and a €20 payment – they are advised to top up by €10 each time and to leave at least one day between each payment.

Landlords whose tenants do not have an electricity account are expected to pass the discount and the Residential Tenancies Board could mediate or adjudicate in cases of disputes.

Customers do not have to apply for the credit as it will be issued automatically.Oil prices soared more than 9% on early trading today touching their highest since 2008. Both the EU and US are considering a ban on Russian oil imports. The Irish government is developing a plan to change excise rates on fuel to protect consumers from price increases.  VAT Changes may need EU approval and the government has stated so far that increases in the Carbon tax, due on May 1st  , will go ahead as planned. Data from the Department of Finance shows taxes and charges account for 55 per cent of the cost of petrol and 51 per cent of diesel.  In the case of diesel, a current €189.90 per litre charge constitutes a product cost of €100.73; 42.57 cent in excise; 35.51 cent in VAT; 2 cent in Nora levy (National Oil Reserve Agency); 8.97 cent in carbon tax; and 0.12 cent in the Better Energy levy.