Plan to halve 'green levy' may reduce electricity bills

Electricity customers could benefit from a decision by the energy regulator to cut a so-called 'green levy'.

It was introduced in 2010, mainly to support the renewable sector, but the Commission for Regulation of Utilities is proposing to halve the levy to €23.04 next year.

It is hoped the savings will be passed on to consumers.

Irish electricity prices are the fourth highest in Europe.

The Public Services Obligation (PSO) levy was introduced in 2010 to subsidise energy that is generated from renewable sources such as wind and solar and also subsidise peat burning in some Midland power stations.

However, over the past two years, the price of renewable energy has become more competitive and the price of non-renewable energy more expensive.

Daragh Cassidy of price comparison site Bonkers.ie, said: "While it's good news that the levy is proposed to decrease, it's somewhat of a hollow victory for consumers as a main reason for the reduction is the large increase in energy prices that we've seen over the past few years."