Electricity price hikes will cancel out Budget energy credits, says Sinn Féin

The Government is set to announce a €250 energy credit in next week's Budget but much of this will be wiped out by price increases, according to Lynn Boylan MEP

Most of the energy credits in the Budget will be eaten up by new electricity price hikes, Sinn Fein claimed yesterday.

MEP Lynn Boylan condemned the energy regulator and the Government for pushing through price rises that will disproportionately impact households while benefiting large energy users like data centres.

She said that, as the Government is set to announce a €250 energy credit in the Budget, it is hitting families with €140 a year in extra energy costs.

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Ms Boylan said: “On the same day the Government is expected to announce an energy credit, the benefit will be wiped out by increases in the PSO (public service obligation) and network charges the very same day.

“The Government is giving with one hand and taking away with the other. People are struggling to pay bills more than ever. They were already disappointed to see the value of the energy credit cut from €450 in last year’s Budget to €250 this year.

“Now, with over €140 being taken off again, that leaves households with just €110 to help with their energy bills, less than a quarter of what it was last year. Adding insult to injury, these increased charges are effectively subsidies for data centres.”

Tax cuts, a reduction in the rate of the Universal Social Charge, and a tax on vaping products are expected in Tuesday’s Budget. But the cost-of-living package in Jack Chambers’ first budget as finance minister will not be on the same scale as previous budgets.

Budget 2025 talks are set to continue today with large aspects of the package not expected to be finalised until Monday evening. It’s believed the band entry for the 40% tax rate will be increased from €42,000 to €44,000, with the USC cut from 4% to 3% on all earnings between €25,000 and €70,000.

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