Fears over increase of levy on electricity
The public service obligation tax has already risen by more than 300% since it was introduced three years ago by the Commissioner for Energy Regulation.
Many Irish-owned businesses will also see their bills increase sharply from the end of the month.
Despite a fall in wholesale energy prices worldwide, Irish electricity consumers will see their bills rise this winter due to a 50% increase in the public service obligation levy which came into effect on October 1.
A nationwide survey has found that electricity is the biggest cause for concern when it comes to utility bills — with 45% feeling pressure to reduce consumption.
A further study conducted by uSwitch.ie, an independent price-comparison and switching service, shows that 61% of households went cold in their homes last winter in an attempt to keep a lid on their energy bills.
That figure is likely to rise as a result of the increased levy, which will operate until the end of September, 2015.
All electricity consumers are affected, regardless of the amount of energy they use.
The study also reveals that one in four homes regularly went without heating last winter due to soaring energy costs.
“It’s clear from this research that people are still struggling to cope with the high cost of energy bills in Ireland,” said Eoin Clarke, head of uSwitch.ie.
“With the price of energy rocketing by over €500 in the last three years, there are many people who have resorted to going cold in their own homes in a bid to reduce bills.”
The levy is increasing by more than 50%, rising from a current annual charge of €42.84 per customer to €64.37, excluding Vat. That represents an increase of €21.53 per customer, but the total increases from €48.62 to €73.06 when Vat is added.
Smaller and medium-sized businesses will pay €221.66 a year, or €18.47 a month, over the same period. They will pay €38.3m of the total nationally.
The increase has been attacked by consumer groups and the Society of St Vincent de Paul, which described it as a “regressive tax” that will put a financial burden on vulnerable people.
The society said the levy will also substantially increase costs to SMEs and larger electricity users.
