Electricity bills set to increase as PSO levy goes up

The new total levy will now be €104.74 per year

Electricity bills set to increase as PSO levy goes up

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The Commission for Energy Regulation has announced an increase in the Public Service Obligation (PSO) levy.

It is going up by just over 30%, which will mean an increase of around €24 per year including VAT.

The new total levy will now be €104.74 per year, up from €80.30.

The increase will come into effect from October 1st and will impact all domestic electricity customers.

The PSO levy subsidy is designed by the Government and consists of various schemes to support objectives related to renewable energy and indigenous fuels.

The Government determines the level of subsidy provided, with the CER’s primary role being the calculation of the levy.

The CER says: "Following a review of PSO cost submissions from eligible suppliers, the CER’s initial calculation is that a PSO levy of €496.5m will be required for the 2017/18 PSO period"

Managing director of website Switcher.ie, Eoin Clarke, said: "The PSO levy is a standard component of all electricity bills, and is a charge all of us have to pay, regardless of our electricity usage.

"Already, the average electricity bill in Ireland stands at €947 per year, so the fact that this PSO Levy change will push this up by another €25 will come as unwelcome news for anyone who is already struggling to pay their energy bills."