CER proposes another increase to the PSO Levy
The proposal equates to a 40% increase for domestic electricity customers.
Today, the Commission for Energy Regulation (CER) has issued a proposal on the PSO Levy for 2017/18.
What is the PSO Levy?
The PSO Levy 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.
What would this PSO Levy increase mean for me?
Each year, the CER reviews the total levy amount and decides on the amount needed for the following year. Today, the CER has proposed a PSO Levy of €496.5 million for 1 October 2017 to 30 September 2018 - an increase of around €104 million on the 2016/17 amount.
In terms of practicalities, what this means is a 40% increase in the cost of the levy for domestic customers. Currently, the levy comes in at €5.90 per customer each month (ex VAT), the proposed increase would see this rise to €8.27 per month (ex VAT).
Why is the CER proposing a PSO Levy increase?
The CER has said the main driver behind the increase in the levy is an increase in the level of renewable capacity - the cost of renewables has increased by €73 million relative to the 2016/17 levy.
When will the PSO Levy increase come into effect?
Generally, the CER issues a proposal on the PSO Levy around this time each year. This is an initial proposal, and feedback is requested from staekholders on this.
Later in the summer, the CER will issue a final decision on the 2017/18 levy - which could be higher or lower than the current proposal - and the new levy will be charged to all electricity customers from 1 October 2017.
How can I save on my electricity bills?
The standard electricity bill for an average customer in Ireland is a whopping €971.56 per year, so any increase in the PSO Levy - which all electricity customers have to pay - will be unwelcome news for anyone already struggling to make ends meet.
But, there are great introductory offers and discounts in the energy market at the moment, with potential savings of up to €177 on electricity bills alone, which could go a long way.
Switching only takes a few minutes, and the potential savings would likely more than cover the cost of any PSO Levy increase.