Another increase to the PSO levy is expected in October this year.
The proposed increase will mean an additional €32.28 a year on household electricity bills (including VAT).
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 €8.27 a month from October 2017 – which is an increase of 40%. The total annual PSO Levy per customer from October 2017 will be €118.50 inclusive of VAT if this increase is agreed. (An increase from €70.80). 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 final decision on the increase will be known in August or September.
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.
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