The Government intends to slash VAT on electricity and gas as part of a raft of cost of living emergency measures being introduced to deal with the energy crisis.
It is also expected to sign off on a three-week extension of the fuel allowance to give relief to hard-pressed families.
The planned measures come after the leaders of the three coalition parties met with finance minister Paschal Donohoe and public expenditure minister Michael McGrath last night to discuss emergency action to cushion cash-strapped households against the rising inflation.
Senior Government sources said that the measures the ministers agreed to bring to Cabinet during the meeting will cancel out the controversial carbon tax increase, which is set to come into effect next month.
The Cabinet is expected tomorrow to sign off on a temporary VAT reduction from 13.5% to 9% on electricity and gas, which is allowed for under the European Commission's measures to mitigate rising costs.
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Business Plus understands that new legislation will be needed to slash the VAT rate, with Government expected to introduce that in "the next few weeks" if the measure is signed off by Cabinet.
Also on the table is a three-week extension of the fuel allowance, which would be paid out in a €99 lump sum. It's understood that more than 370,000 people across the country would benefit from the payment.
This year's fuel allowance ended on April 8. Meanwhile, energy minister Eamon Ryan will bring a separate memo to Cabinet tomorrow with additional money-saving measures.
The Green Party leader proposes cutting the public service obligation (PSO) levy on energy bills. The levy is included on all electricity bills, with energy companies required to collect it.
If the PSO was removed, households would save an average of €58 a year on their electricity bills. Also included in Ryan's memo is a proposal for mandatory time-of-day pricing for 750,000 homes with smart meters.
In homes with smart meters, people can currently opt into time-of-day pricing, with energy prices at their highest at peak hours of 5pm to 7pm, lower between 8am and 5pm as well as 7pm and 11pm, and at their cheapest between 11pm and 8am.
While energy prices are at their cheapest during the night, the Dublin Fire Brigade has warned people against turning on washing machines and dishwashers at bedtime.
A spokesperson for the fire service said: "The advice of Dublin Fire Brigade is to unplug all unnecessary electrical items when you go to bed or leave your home.
"This includes appliances such as washing machines, dryers and dishwashers. These appliances can fail, resulting in a fire. Our advice is in relation to availing of the cheaper energy rate is to use them in the time period before you go to bed."
Meanwhile, a spokesman for the Department of Environment, Climate and Communications said using appliances outside of peak time does "not necessarily" mean night time.
Yesterday, Sinn Féin urged the Government to do an emergency budget to address the rising cost of living.
The opposition party's finance spokesperson, Pearse Doherty, said it is "simply not credible" for the Government to rule out budgetary measures. "The Dáil does not sit now for another two weeks. The Government cannot afford to sit on their hands during this period," he said.
"They need to be proactive and use that time to prioritise an emergency budget that helps to relieve some of the ever-worsening financial pressures on workers and families, and that sets out a roadmap for the state to navigate through this crisis."
Measures being proposed by Sinn Féin include removing excise duty from home heating oil, introducing cost-of-living cash payments, and extending the fuel allowance season by six weeks, along with increasing social welfare rates.
Government ministers have repeatedly ruled out doing a mini-budget to address the cost-of-living crisis. The Taoiseach told the Dáil last week there will be "uncertainty" for the rest of the year as inflation is expected to remain high.
