Hildegarde Naughton (Galway West, Fine Gael)
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501. To ask the Minister for Communications, Energy and Natural Resources if he is aware of the plan to increase the public service obligation levy by nearly 36% in each of the years 2016 and 2017; if so, the estimated knock-on effect of this on the price of electricity; and if he will make a statement on the matter. [16784/16]

Denis Naughten (Roscommon-Galway, Independent)
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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 Government's electricity policy objectives for renewables, indigenous fuels and security of supply. It also supports employment in the renewables industry and in the peat industry. The PSO has supported the connection of over 2,000 MW of renewable energy to the electricity grid and will continue to support further renewable energy connection so that the 40% target for renewable electricity penetration by 2020 is met.

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 on Energy Regulation (CER).  The CER has published a consultation on a proposed levy of €441 million for 2016-2017, equating to less than €7 per month for domestic consumers and representing an annual increase for domestic consumers of €19.32 on last year. The biggest drivers for the proposed levy increase are the lower predicted wholesale market electricity price and increased deployment of renewables.

I am very 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 proposed levy increase in the current period. In this regard I am pleased to see that some electricity suppliers have recently reduced their prices. Customers can also avail of discounts available, either by contacting their supplier directly or by using the price comparison websites accredited by CER to switch to discounted tariffs. A customer consuming the average amount of electricity could save over €150 by switching suppliers.