Household Electricity Discount Scheme
About the scheme
The Household Electricity Discount Scheme is funded by the government and will provide a direct payment to eligible households in Northern Ireland through their electricity supplier.
The Scheme is designed to help reduce electricity costs for households.
In 2025, the UK Government approved funding to support households through a three-year programme. This funding covers 75% of the domestic cost of the Northern Ireland Renewables Obligation (NIRO) and will be delivered through three broadly equal annual payments, with the first payment being made in autumn 2026 and subsequent payments in 2027 and 2028.
In July 2026, the UK Government announced a temporary reduction in VAT on domestic electricity supplies in Great Britain from 5% to 0% for six months from 1 October 2026. As this measure could not be implemented in Northern Ireland from October, the Department worked with HM Treasury and delivery partners to develop an alternative approach.
As a result, eligible households in Northern Ireland will receive a single combined payment through their electricity supplier. This payment brings together support from both the NIRO funding package and the agreed alternative to the temporary VAT reduction.
The value of the direct payment to each eligible household in Northern Ireland for 2026 is £63. This will be applied automatically and no application required.
Further information
For more information go to:
We have also provided a link to Frequently Asked Questions:
Statement by the Minister for the Economy: