The energy regulator in Ireland has approved a significant increase on the levy on household electricity bills starting from October this year.
The Commission for Energy Regulation has agreed to a 20% increase in the Public Service Obligation levy.
The Public Service Obligation (PSO) levy is a subsidy charged to all electricity customers in Ireland. It is designed by the Irish Government and consists of various schemes to support its national policy objectives related to renewable energy and security of supply through the use of indigenous fuels (peat).
One of CER's responsibilities is to calculate how much the PSO levy should be, and they've said it should be increased.
CER’s revised calculation is that a PSO levy of €471.9 million will be required for the 2017/18 PSO period, which represents an increase of €79.5 million (20%) on the 2016/17 levy of €392.4 million.
The 2017/18 PSO levy, which will come into effect from October, will result in a monthly charge of €7.69 for domestic customers. Currently the levy stands at €5.90 per month.
