Energy arrears: One in eight households behind in electricity, one in four in gas bills

Households will again receive support with their electricity bills this year, with the Government recently announcing a €250 credit in Budget 2025. File photo

The number of households in arrears on their energy bills has surged this year, with almost one in eight now behind on their electricity and almost one in four behind on their gas bills.

The Commission for Regulation of Utilities has said that, at the end of June, households across Ireland owed a total of €119m on their electricity bills and €38m on their gas bills. This worked out to an average of households owing €435 on electricity and €210 on gas, CRU said.

Its figures also show a marked increase in disconnections due to non-payment, with 226 households disconnected from electricity and 266 disconnected from gas in July.

“The percentage of domestic electricity customers in arrears in July 2024 was 12%, which is the same level it was at in June 2024,” CRU said. “The peak percentage of customers in arrears is 13% which was reached in November 2023 and previously in December 2021, March 2022 and May 2022.

“The number of domestic electricity customers in arrears has continued to rise marginally month-on-month since the final payment of the Government Electricity Credit Scheme was applied to customers’ accounts in March 2024.” 

Comparing month by month, CRU’s figures show that once the Government’s electricity supports kick in, the number of people in arrears drops.

In January, there were 208,899 customers in arrears on electricity bills. However, by July, this had risen to 271,338. This is the highest it has been since last November.

Meanwhile, 178,676 people were in arrears on their gas bills in July. “The percentage of domestic gas customers in arrears in July 2024 was 24%, a decrease of 1% from the level it was at in May 2024,” the regulator said.

“The record level of domestic gas customers in arrears is 25%, recorded in March, May and June 2024. Domestic gas arrears levels have typically tended to plateau over the course of summer (24% throughout summer 2023, 20% throughout summer 2022).” 

One-off supports

Households will again receive support with their electricity bills this year, with the Government recently announcing a €250 credit in Budget 2025. This will be applied in two instalments.

Despite inflation easing, energy bills are still at significant levels with no substantial reductions in bills appearing likely in the short term.

However, the Government has been criticised for the nature of these one-off supports, while charities working with those living in poverty have said the once-off payments are welcome but not sufficient for struggling families.

Last week, Social Democrats TD Cian O’Callaghan called on the Taoiseach to “put in place long-term supports and changes, not temporary measures”.

"Let us be very clear about that," he said. "The Government's failure to invest where it is needed most has real consequences for people."

Simon Harris responded that while the economy is doing well, people are still facing high grocery costs and are struggling to pay bills.

"I make no apology for giving people a little bit of their own money back in the here and now," he said.