ESRI: Universal Energy Credits Cost Hundreds of Millions More Than Targeted Aid

Universal energy credits have cost hundreds of millions of euro more than targeted measures that could have lifted vulnerable households out of energy poverty, according to the ESRI. This finding comes as Minister for Finance Simon Harris considers reintroducing universal credits in the next budget.

Electricity credits of €125 were paid to 2.3 million household accounts in 2024 and 2025 before being scrapped. Harris noted that many Irish households not qualifying for fuel allowance still face hardship and «won’t be forgotten». He stated that ruling out universal credits now would be «foolish and arrogant».

However, the ESRI’s research indicates 30% of households experience energy affordability problems, needing an average of €480 annually to exit energy poverty. A targeted €480 subsidy for these households would have cost €370 million, whereas the universal electricity credit cost €550-575 million. The ESRI argues a €575 million fiscal envelope could be used more effectively through targeted support.

Sinn Féin’s call for an emergency budget with a €400 electricity credit would also be very expensive. The ESRI suggests temporary electricity credits, targeted bill supports, and deferred payment schemes for price shocks. Long-term solutions include investment in energy efficiency, retrofitting, renewables, and supportive grant schemes. Energy poverty disproportionately affects low-income households, single-adult households, and renters, with only about a third of those in energy poverty receiving fuel allowance.