Energy Regulator announces 6.6% cut in annual electricity levy
Despite proposing a 12% decrease in June, CER announced today the PSO Levy will decrease by 6.6% instead
The Commission for Energy Regulation (CER) has announced a 6.6% decrease in the cost of the Public Service Obligation (PSO) levy for households.
From October 1, the levy will be €60.09 (€68.20 including VAT) for domestic customers - a €4.28 decrease.
The PSO Levy for 2014/2015 was €64.37 (€73.06 including VAT), and had increased every year since 2011.
In June of this year, CER proposed a 12% reduction in this levy which would have brought the price down to €56.52 (€64.15 including VAT).
|Year||Monthly Levy Amount||Annual Levy Amount|
|2011 - 2012||€1.61||€19.33|
|2012 - 2013||€2.32||€27.82|
|2013 - 2014||€3.57||€42.87|
|2014 - 2015||€5.36||€64.37|
|2015 - 2016||€5.01||€60.09|
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Read more: PSO Levy explained
In a decision paper published today, CER stated that the total PSO Levy of €325.3 million for 2015/2016 increased from the proposed €304.8 million consulted on in the June decision paper.
One of the reasons for this is a further reduction in the estimated average wholesale Single Electricity Market (SEM) price for 2015/2016, which fell from €53.52/MWh in the June proposal paper to €52.25/MWh used for this decision.
The PSO Levy is charged to all electricity customers in Ireland. It is used to subsidise renewable energy generation and peat burning power plants. The levy also contributes to the cost of keeping power stations on standby.
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