PSO levy on energy bills to be discarded from October

Eamon Ryan is to bring an “energy framework” memo to Cabinet on Wednesday to help offset the energy price crisis. Photo: Julien Behal

Eamon Ryan is to bring an “energy framework” memo to Cabinet on Wednesday to help offset the energy price crisis.

Government sources have confirmed the memo is likely to recommend the PSO levy should be eliminated on October 1 this year. The PSO (Public Service Obligation) levy is charged to all electricity customers in Ireland and supports the generation of electricity from sustainable, renewable and indigenous sources. 

Government sources say the proliferation of renewables and their reduced cost, has minimised the need for the levy. Elimination of the levy will save billpayers around €58 a year.

The use of Smart Meters and a time-of-day usage opt-in will also be encouraged. The Government will also be encouraging people to use electricity at a time of day when the tariff is cheaper.

At the moment bill payers opt in to such a programme, and the Government is now looking at an opt-out measure to increase the amount of properties involved.

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There will also be measures to help people in fuel debt, according to a government source, which will include ensuring people are on the correct tariff and altering some measures on repayment schedules. Sources have confirmed there will be no financial measures in what will be announced on Wednesday.

Separate to the memo, government leaders are to meet this evening to discuss further measures to offset the carbon tax increase due next month.

Fianna Fáil and Fine Gael are both battling backbench concerns about the proposed raise on carbon tax and have heaped pressure on their respective party leaders.

“Carbon tax is already offset, it has already paid for the increase in fuel allowance,” one Department of Environment source said.

“The department has been left scratching their heads, if they want to offer measures to help people in fuel poverty, we’d be keen to listen to that.” The report also notes that Ireland’s energy security is stable compared to other European countries, especially those close to Russia.