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The PSO Levy for 2025 is set at €3.23 (excluding VAT) per month, or €38.76 per year for households. With VAT included, this amounts to €42.25 per year. The Public Service Obligation (PSO) levy is charged to all electricity customers in Ireland as a means of supporting the renewable energy sector. The Commission for Regulation of Utilities (CRU) sets the level of the PSO levy every year, which runs from 1st October until 30th September.
PSO Levy Reduction from October 2025
The Commission for the Regulation of Utilities, CRU has decided to lower the PSO levy to €1.94 a month from October 2025. This works out at €23 a year, and is half of what the levy is at the moment.
The PSO Levy in Ireland for the period of October 1st, 2024, to September 30th, 2025 (which includes most of 2025) has been set as follows:
This marks an increase from the previous period (October 1st, 2023, to September 30th, 2024), where the PSO levy was set to zero. The increase is primarily due to lower wholesale electricity prices, which mean renewable generators require greater support from the levy.
The PSO levy ensures a guaranteed price for electricity produced by renewable energy providers The levy increases when wholesale energy prices decrease, which has happened this year.
The Public Service Obligation (PSO) Levy is a tariff imposed on all electricity customers. Its goal is to help pay towards Ireland's renewable energy objectives and is included as an extra tax along with electricty VAT.
Yes, business customers are also obliged to pay the PSO Levy, however there are some differences in how much is charged compared to domestic customers.
Businesses are typically categorized based on their Maximum Import Capacity (MIC), which is the upper limit on the total electrical demand they can place on the network system, measured in kilovolt-amps (kVA).
The fundamental purpose of the PSO levy is to support the generation of electricity from sustainable, renewable, and indigenous sources in Ireland.
Since businesses are significant consumers of electricity, they contribute to the overall cost of supporting the renewable energy sector, just like households do.
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The PSO levy is important because it helps the investment in renewable energy and allows for renewable energy producers to receive a guaranteed minimum price.
This is vital since renewable energy is a very volatile business venture, and having a guaranteed price allows for Ireland’s renewable energy market to remain stable.
The PSO levy is charged to all electricity customers. It is applied directly to your electricity bill and is paid over the course of the year, so it’s not all in one go.
Given that the PSO levy is currently set at €0.00, it has no effect on household electricity bills.
The government sets the level of the PSO levy each year, either increasing or decreasing it accordingly.
The biggest factor that determines how much energy customers are charged on their average electricity bills is the wholesale price of electricity.
In simple terms, the higher the price of electricity, less money is required to subsidise the generation of renewable energy.
If prices fall, the inverse effect occurs and the PSO levy increases to offset the lost revenue in the generation of renewable energy.
The PSO levy was first introduced in 2010 and in the table below you can see how it has fluctuated in amount in the following years, reaching over €100 in 2017
Source: CRU
Last Updated: June 2025
By how much it will increase or decrease is difficult to predict, given the factors that influence it.
While the energy market has stabilised in the last 12 months, bills remain high despite providers lowering their prices slightly, meaning that there is unlikely to be a significant change in the amount charged for the PSO Levy.
In its latest budget for 2025, the government pledged to spend on reducing the cost of living crisis and making things easier for energy customers across the country.
Among tax decreases and other help for social welfare, as well as dealing with the housing crisis, the government offered two other measures other than the decrease in the PSO levy to help battle the crisis:
We currently still need to wait for more information about the Budget 2026 and what changes might come due to the easing energy markets.
Even as the PSO levy was decreased to zero from 1 October 2023, you can still take action to help decrease your own energy bills through implementing some energy efficient measures and or switching provider.
Since many suppliers offer discounted rates and cashback offers to new customers, you can also save money switching or comparing energy tariffs. You can also look into getting a smart meter so you can take advantage of cheaper electricity at night with a night saver tariff.
As of October 1st, 2024, the PSO levy has been reintroduced and is not currently in a refund state. Domestic customers are now paying €3.23 (excluding VAT) per month.
This is because wholesale electricity prices have fallen from their peak, meaning renewable generators now require support from the levy again to meet their guaranteed prices.
No, the PSO Levy is only applied to electricity bills. Gas customers in Ireland pay a separate Carbon Tax on their natural gas usage, which is designed to encourage reduced carbon emissions.
The PSO levy is typically listed as a separate line item on your electricity bill, usually found in the breakdown of charges alongside your standing charge and electricity usage (kWh). It will be clearly labelled as "PSO Levy" or "Public Service Obligation.
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