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01st May 2024

Carbon tax price hikes in effect from today – here’s what it means for customers

Simon Kelly

Carbon tax increases

Less bang for your buck.

The new carbon tax increase comes into effect today (Wednesday, May 1) adding around €17 to annual bills for consumers.

The tax, which is applied per tonne of carbon dioxide emitted by carbon fuels, today increases by €7.50, bringing the current rate to €56 per tonne.

The tax also affects natural gas customers, who will now pay just over 1c extra per kilowatt hour.

The total carbon tax for customers per year will increase to around €122, based on average consumption of 11,000 kilowatt hours for households.

However, those who have houses with three or more bedrooms, or those with poor energy ratings, may end up paying more per year.

The increase will also add €19.40 to the cost of filling a 900-litre tank of kerosene home heating oil.

Users of coal and briquettes will also see prices rise, around 75c extra for a bag of coal and 17c for briquettes.

Carbon tax price hikes in effect from today – here’s what it means for customers

Darragh Cassidy of switcher website said, “With energy prices still at extremely high levels, it’s fair to say this tax increase won’t be welcomed by many.

He added: “There is also concern that it disproportionately affects those on lower incomes.”

Mr Cassidy said that the rise in carbon tax is “here to stay and an increase to €100 has been legislated for already”, suggesting that a switch in suppliers or a retrofitting could be a way to offset the increase.

“Investing in a retrofit and looking for ways to make your home more energy efficient is also an option and is one of the ultimate aims of the carbon tax in the first place,” he said.

The carbon tax does not apply to electricity.

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Carbon tax