Energy Regulator proposes 12pc decrease in electricity levy
THE energy regulator has proposed that households pay €56 a year from October in a levy on their electricity bills.
The levy is to cover the cost of generating electricity from renewables, peat and to contribute to the cost of keeping power stations on standby as backup on the system.
This is down 12pc from the current cost of the levy, called a public service obligation. When VAT is included, the proposed cost would be €64 per household.
Simon Moynihan of price comparison site Bonkers.ie said the energy regulator’s proposal to reduce the levy should be welcomed as it is the only time we've seen it decrease since 2011.
The PSO Levy, which currently stands at €64.37 (€73.06 including VAT) per year for every electricity household, has increased every year since 2011 . It fell in 2010.
The levy has gone up by 233pc since 2011 from €19.33 to €64.37 this year, Mr Moynihan said.
Lower wholesale prices have put upward pressure on the levy. However, the termination of contracts for power plants at Tynagh, Aughinish and Edenderry over the coming year have more than compensated for this, and will reduce the amount needed for the public service obligation levy by €38m.
The Commission for Energy Regulation has sought views on the proposed levy cost.