Dáil Éireann Debate, Wednesday - 9 July 2014
315. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources the basis on the public service obligation on energy costs; the amount collected in 2013; the way this money was used; and if he will make a statement on the matter. [30350/14]
View answerThe Public Service Obligation (PSO) levy has been in place since 2001 and is the overall support mechanism for electricity generation constructed for security of supply purposes (including peat fired generation), and for the development of renewable electricity to meet Ireland's target 40% of electricity demand being met from renewable sources by 2020. The levy is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers.
The Commission for Energy Regulation (CER) determines the PSO levy which is a charge on all electricity customers without exception. The legal basis for the PSO levy and its method of calculation are set out in Regulations made under the Electricity Regulation Act 1999 (S.I. No. 217 of 2002). The PSO levy is calculated annually for the period 1 October to 30 September.
The levy amounts for 2012/13 and 2013/14 amounted to €131.24 million and €210.9 million respectively. CER Decisions CER/12/121 (of 1 August 2012) and CER/13/168 (of 31 July 2013), both of which are available on the CER website at www.cer.ie, set out how the levy is calculated for these periods. These documents contain further details on the main categories of PSO generation supported and calculate the payment by customer category for these levy periods.
