Beat the Price Increases and Save Money on Electricity in 2025
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Variable Rate
26% Discount
30% Discount
The Public Service Obligation (PSO) levy for the period of October 1st, 2025, to October 30th, 2026, has been adjusted by the Commission for Regulation of Utilities (CRU). The levy for domestic customers is now set at €2.01 per month (excluding VAT), which amounts to €24.12 per year. Including VAT, the yearly cost will be €26.35. This new rate represents a 38% reduction from the previous period's charge of €3.23 per month.
Following a review by the CRU, the PSO levy is set to be lower for the 2025/2026 period.
Domestic customers will see their monthly charge reduced to €2.01 (excluding VAT) from the current €3.23.
This change will take effect on October 1st, 2025, and translates to an annual cost of €24.12 before VAT, or €26.35 with VAT included.
This 38% reduction in the levy will offer a small but welcome decrease in household energy expenses.
Similar to the domestic rate, the PSO levy for businesses will decrease significantly.
The amount a business pays depends on its Maximum Import Capacity (MIC), which is the maximum amount of electricity a business can draw from the network.
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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 electricity VAT.
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.
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
PSO Levy Ireland
Euros per year
Source: CRU
Last Updated: October 2025
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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