The credit comes as a refund of the public service obligation (PSO) and will be distributed by suppliers until September.

The CRU said: “Historically, the PSO levy is charged to all electricity final customers to fund schemes designed by the Irish Government to support the greater integration of renewable generation and to meet its national targets.

“To date, these schemes have been successful in incentivising over 4,200 MW of renewable generation.”

However, due to current wholesale gas prices being high, Irish households have been paying more toward the PSO than is needed. This is because wholesale gas prices set the standard for wholesale electricity prices.

The CRU continued: “As a result, for the PSO year 2022/23, no support for these renewable generators is required from the PSO and, under the terms of the scheme, the benefits of buying from renewables generation are now to be paid back to customers through a PSO payment on their bills.”

Electricity customers will not be required to take any action, as the refund will be automatically credited. It will appear on a separate line in energy bills.

On top of this, a €200 electricity credit is set to be distributed to Irish households by the Government in March.