Timmy Dooley (Clare, Fianna Fail)
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485. To ask the Minister for Communications, Energy and Natural Resources his views on increasing the public service obligation levy on electricity bills; the rate at which it is levied; and if he will make a statement on the matter. [40906/16]

Denis Naughten (Roscommon-Galway, Independent)
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The Public Service Obligation Levy has been in place since 2001. The PSO levy consists of a set of support schemes designed to facilitate 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 and it will continue to support the development of renewable energy so that we can meet our target of increasing renewable electricity penetration to 40% by 2020.

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.  The total PSO Levy for 2016-2017 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 the 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 levy increase. In this regard I am pleased to see that most electricity suppliers have 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.ie or switcher.ie to switch to discounted tariffs. A customer consuming the average amount of electricity could save over €200 by switching suppliers.