Energy Regulator proposes 36% increase in PSO levy
The proposed increase by the CER would raise the PSO levy to circa €90 per household.
The Commission for Energy Regulation (CER) has proposed that a 36% increase in the PSO levy is required for the 2016/17 period. This is set to cost households €90 per year after VAT, as opposed to the current levy of €68 annually.
Wholesale price drop & renewable energy
The CER has stated that it requires €440.9 million from the PSO levy for the 2016/17 period, as opposed to the current requirement of €325.3 million.
The increase has been attributed to a drop in the cost of wholesale prices, as well as a 40% increase in renewable energy generation, as the reasons for the €115 million annual increase in the levy.
What is the PSO Levy?
The PSO levy, or Public Service Obligation levy, is added to the bill of every domestic and small commercial electricity customer in Ireland. It was generated as means to cover the additional costs associated with producing sustainable and renewable energy in Ireland.
The Commission for Energy Regulation has sought the views of the public on the proposed levy increase.
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