What is the carbon tax?
The carbon tax is a government tax introduced in the 2010 Budget, applicable to all CO2 emission sources. The carbon tax has applied to all natural gas customers since 1 May 2010.
From 1 May 2024, the tax for natural gas was derived from the rate of €56 per tonne of carbon dioxide (CO2) emitted and is applied to gas bills at a rate of €0.01013/kWh. This is subject to VAT.
For the average residential gas customer based on usage of 11,000 kWh per annum (as per CRU guidelines), the carbon tax equates to €111.43 annually (excl. VAT), or €18.57 (excl. VAT) per bi-monthly bill.
Further details about the carbon tax can be found at revenue.ie which includes information on the carbon tax methodology, figures and calculations.