Good news for electricity customers - CRU proposes a decrease to the PSO Levy
A final decision on the Levy for 18/19 will be published later this summer.
The Commission for Regulation of Utilities (CRU) has just issued a proposal on the PSO Levy for 2018/19. If the proposal goes through it would mean a decrease of €3.43 per month on the Levy for domestic electricity customers, so they will be paying €4.26 per month (ex. VAT), rather than the current rate of €7.69.
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 are the details of this decrease?
Each year, the CRU reviews the total levy amount and decides on the amount needed for the following year. Today’s proposal suggests a PSO Levy amount of €258.6 million for 1 October 2018 to 30 September 2019 - a decrease of €213.3 million on the 2017/18 amount.
When will the PSO Levy decrease come into effect?
The CRU issues a proposal on the PSO Levy around this time every year, and requests feedback from stakeholders on it.
The CRU will issue a final decision on the 2018/19 levy later in the summer - the final decision may see this proposed amount reduced, or increased. The new levy will then be charged to all electricity customers from 1 October 2018.
How can I save on my electricity bills?
At the moment, the annual standard electricity bill for an average customer in Ireland is €1005.26, but we’ve just had a price hike announcement from SSE Airtricity, so we may see further increases soon.
So any decrease in the PSO Levy, which all electricity customers have to pay, will be a welcome reprieve for electricity customers, particularly anyone who is already struggling to make ends meet.
And there are also big savings available for anyone who is free to switch suppliers. At the moment, the average electricity customer can save up to €205 by switching to the cheapest deal on the market, which could go a really long way in combatting any price hikes.