Cuts to the VAT rate charged on electricity and gas will last until the end of October.
Ministers approved a package of measures aimed at reducing the cost of living at a Cabinet meeting this morning.
"Today the Government has now agreed to the reduction in VAT from 13.5% to 9% on the supply of gas and electricity".
Well flagged in advance but Finance Minister Paschal Donohoe outlined a measure which will be worth around €50 on an annual gas bill and €70 a year for electricity.
He also confirmed the existing cut in excise on petrol and diesel will be extended until the budget.
The PSO levy of €50 a year is being waived
And those on fuel allowance will be paid €100 in mid-May to help with their bills.
Minister Eamon Ryan says the discussion this morning also focused on energy security
"On our electricity, we're also in a very tight situation. We had an amber alert yesterday, and it's one of the reasons I'm pushing energy efficiency in everything - we do have to manage that."
The moves today will put hundreds of euro a year back in people's pockets, but Ministers know it won't go near fully offsetting increased costs.
