More households in energy arrears than ever before
More households are in energy arrears than ever before, and experts are warning that the situation will only get worse.
Figures for May from the Commission for the Regulation of Utilities (CRU) show that 328,273 are in electricity arrears, while 188,941 are in gas arrears.
Since May, major suppliers such as Electric Ireland, Yuno Energy, and PrepayPower have all hiked their electricity prices.
Despite the record figures, Taoiseach Micheál Martin indicated that there will be no one-off package to address the issue in October's Budget.
Speaking in Kanturk, Co Cork, Mr Martin said: “We have a budget in the first week of October — that will provide us with an opportunity to deal with cost of living pressures on families, some of it occasioned by the fuel but other knock-on consequences in terms of food prices and so on.”
The number of accounts in arrears for more than 90 days has also increased for both electricity and gas bills, with 188,748 for electricity, and 142,090 for gas, both increased on the figures from this time last year.
The amount of money owed on electricity arrears has climbed to an average of €512.02, while the amount for gas arrears figure has climbed to €223.57, both of which has increased 65% and 45% respectively since 2022.
VAT on energy in Ireland is charged at the lower 9% rate. The lower rate was originally introduced in 2022 as part of a major cost-of-living package from the Government, with VAT falling from 13.5% to 9%. That rate on gas and electricity will be 9% until the end of 2030 under measures announced in last year's Budget.
