Written answers

Thursday, 7 December 2017

Department of Communications, Climate Action and Environment

Public Service Obligation Levy Increase

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
Link to this: Individually | In context | Oireachtas source

189. To ask the Minister for Communications, Climate Action and Environment the justification for the increase in the PSO on electricity bills; and if he will make a statement on the matter. [52584/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
Link to this: Individually | In context | Oireachtas source

The Public Service Obligation (PSO) Levy is a charge on all electricity customers without exception, and is determined by the Commission for Regulation of Utilities (CRU). The legal basis for the PSO and its method of calculation by the CRU are set out in Regulations made under the Electricity Regulation Act 1999 (S.I. 217 of 2002).

The levy has been in place since 2001, and consists of a set of support schemes designed to facilitate national electricity policy objectives for renewables, indigenous fuels and security of supply.  Ireland has a target of increasing renewable electricity penetration to 40% by 2020 and the PSO has supported the connection of over 3,000 MW of renewable energy to the electricity grid and will continue to support the development of renewable energy so that we can meet our target. Moreover, international studies have shown that Ireland has had one of the lowest per unit supports for renewable energy in the European Union. The PSO currently represents around 10% of the average household final electricity bill, or approximately €7.69 on a monthly basis for domestic customers from October 2017.

The PSO levy is calculated on an annual basis by the CRU, which is an independent statutory body, solely accountable to a committee of the Oireachtas for the performance of its functions.

I am very conscious of the impact of energy costs on industry and households alike.  Customers can avail of discounts in the retail electricity market, either by contacting their supplier directly or by using the CRU accredited comparison websites, such as bonkers.ie or switcher.ie, to switch to discounted tariffs.

Comments

No comments

Log in or join to post a public comment.