Dáil Éireann Debate, Tuesday - 20 June 2017
1777. Deputy Josepha Madigan asked the Minister for Communications, Climate Action and Environment the rationale behind pricing the public service obligation levy for energy at 40%; his plans to reduce this levy; and if he will make a statement on the matter. [27796/17]
View answerThe Public Service Obligation Levy has been in place since 2001. The PSO levy consists of a set of support schemes designed to facilitate national electricity policy objectives for renewables, indigenous fuels and security of supply. The PSO has supported the connection of over 3,000 MW of renewable energy to the electricity grid and it will continue to support the development of renewable energy so that we can meet our target of increasing renewable electricity penetration to 40% by 2020.
International studies have shown that Ireland has had one of the lowest per unit supports for renewable energy in the European Union.
The calculation of the level of the PSO is a matter for the Commission for Energy Regulation (CER). The proposed PSO Levy for 2017-2018 is €496.5 million. The biggest driver for the proposed levy increase is the increased deployment of renewables. The 40% increase for domestic customers represents an increase of €2.37. This means the levy proposed for domestic customers is €8.27 per month, for small commercial customers it is proposed to be €28.79 per month and the proposed monthly levy for medium/large commercial customers is €3.74/kVA.
I am very conscious of the impact of energy costs on industry and households alike. Customers can avail of discounts in the retail electricity market, either by contacting their supplier directly or by using the CER accredited comparison websites, such as bonkers.ie or switcher.ie, to switch to discounted tariffs.
