THE GOVERNMENT HAS today approved a package of measures, including the reduction of the public services obligation (PSO) levy, in a bid to reduce the cost of electricity bills as we head towards winter.
The Government said the changes will result in savings for domestic electricity bills over the course of the next PSO year beginning in October.
The statement also said that the coalition has approved the final results of the second onshore Renewable Electricity Support Scheme (RESS 2) auction. This will bring “significantly more Irish wind, solar and hydro-electric energy onto the National Grid”, the statement from the Government reads.
This, they said, will reduce our reliance on increasingly expensive imported fossil fuels.
The PSO (Public Service Obligation) levy is charged to all electricity customers in Ireland and supports the generation of electricity from sustainable, renewable and indigenous sources.
The levy is calculated and certified annually by the CRU (Commission for Regulation of Utilities) in line with relevant legislation. All energy suppliers are required to collect this levy from customers through bills.
Levy payments are calculated on the basis of estimated generation and estimated wholesale electricity market prices for the year ahead.
The Government previously announced that the PSO levy would go to zero from 1 October of this year, which will lead to an annual saving of €52 (excluding VAT) on household bills.
However, this is being reduced even further, meaning customers should expect a rebate.
The statement explains: “In a further move (and in a new announcement), the proposed PSO levy will decrease from €263 million for 2021/2022 to an estimated figure of minus €408 million for the forthcoming year.
“This will result in a rebate for domestic household bills – equating to an ‘indicative’ annual saving of €75 (excluding VAT) for householders and consumers. Combined with the €52 saving, this will result in a combined ‘indicative’ saving of €127 (excluding VAT) – for 2022/2023.”
A new National Energy Security Framework was unveiled in April of this year and examines Ireland’s energy needs amid Russia’s war on Ukraine and how it will deal with ‘potential shocks’ to the energy system.
The framework, published by the Department of the Environment, sets out measures to manage the impact of price increases on consumers and businesses in the short-term, maintain a secure supply, and reduce dependency on imported fossil fuels in line with the EU’s plan to cut out Russian energy.
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