Seán Kyne (Galway West, Fine Gael) | Oireachtas source

I thank the Senator for his comments. I will liaise with the Minister, Deputy Naughten, on this issue and I will ask him to liaise with the CER. I accept that there is uncertainty about issues pertaining to the levy. This is associated with factors outside our control that relate to the global market for energy. A number of factors are applying upward pressure to the PSO levy, including the lower Single Energy Market and wholesale market prices. As I have said, the wholesale market price is 20% lower than the price used to calculate the current 2015-16 PSO levy. That creates a major complication.

I reiterate that a lower wholesale price means that the payment to companies engaged in the PSO increases. In addition, there are more renewables. The REFIT scheme supported 2,080 MW of renewable generation in 2015. It is estimated that 2,943 MW of renewable energy, mostly wind energy, will be supported by the PSO next year. As this is 863 MW, or 41%, more than the level supported in the current PSO period, it is driving up the levy. The CER estimates that all renewables account for approximately €334 million of the total of €444 million. While there are a number of complicating factors, they are predominantly based on the lower gas prices in the present market. I will discuss the concerns raised by Senator O'Mahony with the Minister, Deputy Naughten. In particular, I will ask him to liaise with the CER on the impact this is having on small businesses.