Róisín Shortall (Dublin North West, Social Democrats)
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796. To ask the Minister for Communications, Energy and Natural Resources the rationale for current regulations, specifically Article 9 (3) (e) (v) of the Electricity Regulation Act 1999 (Public Service Obligations) Order 2002, that results in not-for-profit sports clubs with floodlights being placed in the same category as multi-national companies; if he is aware of the enormous and disproportionate cost this places on such community organisations; and why a fixed charge cannot apply to such cases as with other categories. [6056/16]

Alex White (Dublin South, Labour)
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The overarching objective of the Government's energy policy is to ensure secure and sustainable supplies of competitively priced energy to all consumers. This policy is set out in the White Paper published in 2015, Ireland’s Transition to a Low Carbon Future 2015-2030. The Public Service Obligation (PSO) levy is a charge on all electricity consumers and is a support mechanism used for two very important objectives. Firstly, it supports electricity generation which was constructed for security of supply purposes, including peat generation. Secondly, it supports the development of renewable electricity, which is important for both security of supply and for reducing carbon emissions from electricity generation. The PSO levy is vital to enable Ireland to meet its 40% target for electricity generated from renewable sources by 2020, which in turn is important for the achievement of Ireland's 16% EU 2020 target for renewable energy.

The levy is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers. It has been in place since 2001. The legal basis for the PSO levy and its method of calculation are set out in regulations made under the Electricity Regulation Act 1999 (S.I. 217 of 2002). The Commission for Energy Regulation (CER) determines the PSO levy in accordance with the legislation, which is a charge on all electricity customers without exception. Electricity consumers are classified into the following three groups: i) households ii) small users (maximum import capacity of less than 30 kVA) and iii) medium to large users (maximum import capacity of equal to or greater than 30 kVA). The annual PSO levy amount for 2015/2016 is €325.3 million compared to €335 million in 2014/2015. This equates to €60.09 per annum for residential customers, €214.50 per annum for small business consumers and €30.14/kVA for medium and large business users.

While I fully understand and appreciate concerns about the cost of the PSO levy to customers, it is the Government’s position that increasing the share of renewable energy in electricity generation in Ireland will enable Ireland to reduce its fossil fuel dependence and vulnerability to rises in international fossil fuel prices.  The PSO levy supports that development and increased security of supply in electricity generation.