Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

The public service obligation, PSO, levy has been in place since 2001. The PSO levy consists of a set of support schemes designed to facilitate the national electricity policy objectives for renewables, indigenous fuels and security of supply. The PSO has supported the connection of over 2,000 MW of renewable energy to the electricity grid. It will continue to support the development of renewable energy to ensure we can meet our target of increasing renewable electricity penetration to 40% by 2020.

Recent international studies have shown that Ireland has had one of the lowest per unit supports for renewable energy in the European Union.

The calculation of the level of the PSO is a matter for the Commission for Energy Regulation, CER. The total PSO levy for 2016-17 is €392.4 million. This equates to less than €6 per month for domestic consumers and represents an increase of less than €1 per month. The biggest drivers for the proposed levy increase are the lower predicted wholesale market electricity price and increased deployment of renewables.

I am conscious of the impacts of energy costs on industry and households alike. As the wholesale electricity price is falling, this should be passed onto domestic electricity customers and more than outweigh the levy increase. In this regard, I am pleased to see that most electricity suppliers have recently reduced their standard prices.

Customers can also avail of discounts available, either by contacting their supplier directly, or by using the price comparison websites accredited by CER, such as bonkers.ieor switcher.ie, to switch to discounted tariffs. A customer consuming the average amount of electricity could save over €200 per annum by switching suppliers.

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