How Much Is the PSO Levy in 2024?
The PSO levy is currently set at €0.00 for the 2023/2024 time period but could rise again later this year following the annual budget announcement in October. 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.
How Much Is the PSO Levy?
From the 30th September 2023 until the 1st October 2024, the PSO Levy is set at €0.00 per year, increasing from the negative figure it was from 2022/2023 at-€97.12.
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 VAT.
The PSO Levy is different from the carbon tax, which is only levied on natural gas customers.
How Does the Government Work Out the PSO Levy?
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 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: July 2024
Why Do We Have a PSO Levy?
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.
Who Pays the PSO Levy?
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.
Does the PSO levy appear on my bill? You will see the PSO levy appear on your bill, along with the number of kilowatt-hours (kWh) you’ve used and VAT. You will usually find it in the breakdown of your bill under your standing charge.
Check Out Our Energy Bill Glossary!
How Much Will the PSO Levy Increase By?
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, prices still 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.
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Is the PSO Levy Reduction the Only Government Help?
In its latest budget for 2024, the government pledged to spend on reducing the cost of living crisis and making things a bit 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:
- Extra Fuel Allowance Payment
The fuel allowance has now been made available to more people, and those who are already on it will receive a once-off payment of €300 in November 2024 to help with the rise in the energy prices. - €450 Electricity Payment
Every electricity customer also received a €450 electricity payment for their electricity bills over the winter months. This payment was paid in three instalments of €200, the first in December 2023, the second in February 2024 and the third in March 2024.
We currently still need to wait for more information about the Budget 2025 and what changes might come due to the easing energy markets.
Check Out Our Guide to the 2024 Budget!
How Else Can I Decrease My Energy Bills?
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.
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.
Our guide to energy saving section contains many useful and informative articles to help you save on your energy costs.