Catherine Murphy (Kildare North, Social Democrats)
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22. To ask the Minister for Communications, Energy and Natural Resources when the returns generated from the public service obligation levy used to reduce energy costs will materialise; the proposed increase in the public service obligation; and if he will make a statement on the matter. [21514/16]

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 achievement of national 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 proceeds of the PSO levy are used to contribute to the additional relevant costs incurred by PSO-supported electricity generators which are not recovered in the electricity market.The PSO has supported the connection of more than 2,000 MW of renewable energy to the electricity grid and will continue to support the development of renewable energy so that the target for 40% 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.

I am conscious of the impact of energy costs on industry and households alike, but would point out that the falling wholesale price  of electricity is being passed on the consumers and more than outweighs the proposed levy increase in the current period. In that regard, I would remind the House of recent price reductions by electricity suppliers  Consumers can also avail of discounts either by contacting their suppliers directly or using the price comparison websites accredited by the CER, such as bonkers.ieand switcher.ie, to switch to discounted tariffs. A customer consuming the average amount of electricity could save over €150 by switching suppliers.

The calculation of the level of the PSO is a matter for the Commission for Energy Regulation (CER). The CER has published a consultation on a proposed levy of €441 million for 2016-2017,  for domestic consumers equating to just less than €7 per month and representing an increase on 2015 of €1.61 per month, or €19.32 per year. The biggest drivers for the proposed levy increase are the lower predicted wholesale market electricity price and increased deployment of renewables.