The deduction would kick in when people's first bill arrives in the new year and apply across the board.
The cost of electricity, gas and other fuels has gone up by nearly 30 per cent over the last year.
Housing Minister Darragh O'Brien says it's making life a lot more difficult for people:
"Cost of living has increased substantially. Inflation is up, short term inflation, particularly around energy. It's not just an Irish phenomenon, right across Europe and developed economies are seeing a big increases in, in energy costs in particular, and that's driving up inflation. That's something that we're acutely aware of and I do expect measures in the new year to be able to ameliorate some of those increases, particularly for those who can afford at least."
