Eamon Ryan criticised for spending €40m more on first energy credit scheme than necessary

Sinn Féin senator Lynn Boylan  had previously argued against the inclusion of second homes in the energy credit scheme, which was launched by the Government in a bid to tackle high energy prices

In a letter to the Oireachtas Environment Committee, Energy Minister Eamon Ryan says he is proposing to 'withhold funding from low-usage electricity households, potentially saving up to €40m'. Picture: Green Party

The Energy Minister has been criticised for spending €40m more on the first energy credit scheme than was necessary by including low-usage households such as vacant houses and holiday homes.

The renewed credit scheme — announced in October's budget — will go directly to 2.2m households over the winter.

The €150 credit will be applied to household bills on December 1, 2023, January 1, 2024, and March 1, 2024.

For some households it may take longer to see the credit on their bill because of the nature of the two-monthly billing cycle for electricity, it has been warned. The credits will be applied automatically, households do not need to apply for them.

However, in a letter to the Oireachtas Environment Committee requesting a waiver of pre-legislative scrutiny on the Electricity Costs (Domestic Electricity Accounts) Emergency Measures Bill 2023, Energy Minister Eamon Ryan says he is proposing to "withhold funding from low-usage electricity households, potentially saving up to €40m".

The bill defines low-usage homes as "a domestic electricity account which is not a micro-generation account, identified by the distribution system operator as having less than 150 kilowatts of electricity consumed in each period of three months in the four consecutive periods of three months occurring in the period beginning on 1 July 2022 and ending on 30 June 2023".

These low-usage homes include holiday, vacant, and second homes, but Sinn Féin senator Lynn Boylan said this could have been done in the last iteration of the scheme. The previous energy credit scheme saw three €200 credits paid to homeowners and Ms Boylan says the inclusion of all homes meant an additional €40m was paid out that could have been used by those most in need. 

Ms Boylan had previously argued against the inclusion of second homes in the energy credit scheme, which was launched by the Government in a bid to tackle high energy prices being experienced by consumers.

The Sinn Féin senator said that the idea was rooted in CSO data which found that it was possible to identify vacant houses and holiday homes based on low electricity usage. Around 10% of residential customers consumed less than 1,000 kilowatt hours in 2020, a stark contrast to the median consumption of 3,658 kilowatt hours. Ms Boylan said:

By excluding vacant and holiday homes, the Government is ensuring that credit isn’t being lavished on people who need it least. In the process, they will save €40m. The Government continually dismissed my efforts to design a more targeted electricity credit scheme as unworkable but fortunately they have proven themselves wrong.

“While I appreciate the Government is finally recognising the benefit of Sinn Féin’s policy adjustment, it is very disappointing that it took them so long to act. 

"The minister could have saved tens of millions last year if he had of taken on board our amendments to the legislation on all the previous occasions.

“While Eamon Ryan was busy cutting the bills of holiday-home owners, he could have been driving even more resources into alleviating energy poverty instead. Once again, the Greens show us their true colours."

A spokesperson for Minister Eamon Ryan declined to respond to Ms Boylan's comments,