NEWS: The Public Service Obligation levy is due to be reduced from Autumn 2022.
What is The PSO Levy ?
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 levy is charged to all electricity customers with suppliers collecting the levy through bills. The PSO levy is currently €4.30 excluding VAT per month which equates to €51.60 a year or €58.57 per year inclusive of VAT.
In 2022 there will be a negative PSO Levy for the first time. This means that comsumers will get money off their electricity bills. See more here about PSO Levy Refund . The negative PSO levy this year is because of the new RESS renewable support scheme, which means that renewable energy generators have to return market revenues above a certain level to Levy customers.
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History of the PSO Levy
The PSO levy was reduced in 2018 and 2019 – therefore the levy in 2020 was lower than it was in 2017.
As you can see from previous articles on the PSO Levy – it has risen from €19.33 in 2011.
All domestic electricity customers are charged the PSO levy at the same flat rate – regardless of how much electricity is used. This means that a single person will pay the same PSO levy as a large family using much more electricity.
There have been suggestions that the PSO levy should be based on a percentage of electricity usage. This would be fairer and higher usage would mean a higher PSO levy.
The government say this can’t be done because of EU rules. Apparently, this is because levies tied to consumption that helps Irish energy producers can’t be applied to imported electricity too.
For an average electricity bill – the PSO levy in 2020 made up about 3% of the annual bill.
For a smaller household with half the average electricity bill – the PSO levy was a much larger proportion (6%) of the total bill.
The Carbon Tax is another extra charge on fossil fuels – read more about Carbon Tax in Ireland