Electricity pylon shot from below with sun shining through

The calculation method for the PSO levy is changing

The change will 'typically' increase costs for domestic electricity customers.

Following a consultation, the CER today announced that the calculation method for the PSO Levy is changing.

The consultation came about as ESB Networks (ESBN) proposed a change in relation to the method used to determine the proportion of the total PSO Levy to be allocated to Medium-Large Commercial accounts.

Essentially, ESBN now has data to allow a more accurate method of allocating the Levy for this accounts. However, the other two categories of accounts - Domestic and Small Commercial users - will also be impacted.

And, while the change will typically decrease costs of the PSO for Medium-Large Commercial users, the CER has said that it will typically increase PSO costs for Domestic and Small Commercial users.

It’s not clear yet what this will mean in practice, but the new methodology will be implemented for the 2017/18 PSO cycle, so there will be more information on this when the Levy proposal for this cycle is published later this year.

In the meantime, the CER noted that some responses to the consultation raised the social impact of the PSO Levy and the lack of public awareness in relation to it.

While the CER has said it must comply with legislation in terms of calculating and ensuring the Levy is administered appropriately, it has said that it will inform the Department of Communications, Climate Action and Environment of the issues raised.