Your electricity bill could soon be going up by €20

A 32% rise in levy proposed to cover renewable energy costs...

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File photo. Image: Peter Byrne / PA Wire/Press Association Images

Ireland's energy regulator is proposing a 32% increase in the cost of a levy covering production of renewable energy.

If the recommendations in the Commission for Energy Regulation's (CER) newly-published consultation paper go ahead, it would add close to €20 to a household's annual electricity bill from October.

Every household would be liable to pay a total of €90 per year on the Public Service Obligation (PSO) levy.

The increase would be €65 for small businesses, taking their PSO bill up to €280 annually.

The PSO levy is chiefly used to fund the development of renewable energy and peat production.

It is set to take in more than €325m for the period between October 2015 and September 2016.

The increase from October 1st is estimated to bump this amount up to €441m for the 2016/2017 year. 

The CER has confirmed that the 32% increase is just a proposed rate, and will likely change between now and the decision date of August 1st.

According to the Irish Independent, the regulator is attributing lower wholesale prices as the main reason why payments to companies engaged in the PSO should increase.

An increase in the energy production from renewables such as wind and biomass was also cited.

The average household currently spends about €1,900 annually on electricity, the third-highest in the EU for the second half of last year according to the latest figures from Eurostat,