PSO Levy increase will add €24 to Annual Electricity Bills

Another increase to the PSO levy is taking place in October this year.
The PSO Levy increase  will mean an additional €24.44 a year  on household electricity bills (including VAT).
A 40% increase was originally planned – but this has now been reduced to 30%.

The PSO Levy (Public Service Obligation)  is a charge that all electricity customers in Ireland have to pay. It helps to cover the costs associated with producing sustainable and renewable energy in Ireland.

The PSO levy is currently €5.90 a month (ex VAT) and it is due to rise to €7.69 a month from October 2017  – which is an increase of 30%. The total annual PSO Levy per customer from October 2017 will be €104.74 inclusive of VAT if this increase is agreed. (An increase from the current  €80.30).
As you can  see from previous articles on the PSO Levy – after this latest  increase ,  it will have risen from €19.33 in 2011.

The PSO levy is charged to all electricity customers at the same  flat rate – regardless of how much electricity is used.  So a single person using very small amounts of electricity will pay the same PSO levy as a large family using much more electricity.

There have been suggestions , now and in the past , to charge the PSO levy based on a percentage of electricity usage – so higher usage means a higher PSO levy.
The government say this can’t be done because of EU rules. Apparently this is to do with the fact that levies tied to consumption that help Irish energy producers can’t be applied to imported electricty too.

With rising Electricity bills becoming inevitable –  you might want to take a look at our comparison of Electricity providers deals for switchers. You could easily cut your electricity bill by €200 in one year.