Change will come into effect from 1 October
The Commission for Regulation of Utilities (CRU) has announced a decrease in the PSO levy for 2018/19. The levy is going down by 55%, which will mean a decrease of €50.52 (€57.34 incl. VAT) per year on consumers’ electricity bills.
The new total levy will now be €41.76 (€47.40 incl. VAT) per year, down from €92.28 (€104.74 incl. VAT). The decrease will come into effect from 1 October, so all domestic electricity customers in Ireland will see their bills reduce slightly from this date.
Eoin Clarke, Managing Director of Switcher.ie, said: “The PSO levy is a standard charge that all electricity customers have to pay, regardless of our electricity usage, so any decrease in this is welcome news.
“The problem is that this €57 decrease in the Levy follows a spate of energy price hikes, which are going to add up to €180 onto some customers’ bills, so it’s really just a drop in the ocean in terms of what’s going on in the wider market. Within just a few days from now, eight price hikes will have taken effect, so energy bills are going to start shooting up soon. This will hit consumers especially hard as we move into the colder months and are using more energy at home.
“What all this means is that the PSO Levy decrease is not likely to even be noticed by hard-pressed consumers by the time October comes around. However, consumers can make significant, immediate savings on their energy bills just by switching. Despite the hikes, the average electricity customer can still save up to €173 by moving from a standard tariff to the cheapest deal on the market, and dual fuel customers can save more than double this. It only takes five minutes, and added to the PSO Levy decrease, will really help to take the sting out of winter energy bills.”
Consumers can compare energy deals at https://switcher.ie/gas-electricity/ and see how much they can save.
For more information, visit Switcher.ie
For further information please contact:
Maeve McLaughlin, Switcher.ie on 01 517 5922/087 133 2526 or firstname.lastname@example.org
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Notes to editors
About the PSO Levy
The PSO levy is one of the standard components of all electricity bills for electricity customers in Ireland and is collected at the same time as payment for the power which has been used. It is marked as a separate charge on electricity bills.
The purpose of the levy is to cover the additional costs associated with producing sustainable and renewable energy in Ireland. Certain energy sources, such as some thermal power stations and wind farms, are also supported by the levy, because this kind of power is relatively more expensive, and these energy sources are better for the environment.
The CRU calculates the PSO levy in accordance with Government policy, based on an estimate of costs, and helps to ensure that the scheme is administered appropriately and efficiently.
Historic PSO levy changes
The table below highlights the monthly and annual changes in cost to the PSO levy from 2011 to date. Rates exclude 13.5% VAT.
|Year||Monthly levy amount||Annual levy amount|
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