Timmy Dooley
Question:231. Deputy Timmy Dooley asked the Minister for Communications, Climate Action and Environment his plans to make changes to the PSO levy system; and if he will make a statement on the matter. [31647/17]
View answerWednesday, 5 July 2017
Questions (231, 232)
Timmy Dooley
Question:232. Deputy Timmy Dooley asked the Minister for Communications, Climate Action and Environment if his Department has considered calculating the PSO levy on the basis of the kilowatt hours of electricity used per month rather than the maximum import capacity of each user. [31648/17]
View answerWritten answers
I propose to take Questions Nos. 231 and 232 together.
I currently have no plans to make changes to the PSO Levy scheme.
The Public Service Obligation (PSO) levy has been in place since 2001 and is the overall support mechanism for generation constructed for security of supply purposes, including peat generation, as well as the development of renewable electricity. It is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers. The Council of European Energy Regulators, in its 2017 Status Review of Renewable Support Schemes in Europe, found Ireland’s level of RES supports, although rising, continues to be one of the lowest per unit in Europe.
I am very conscious of the impacts of energy prices on industry and households alike. However, the PSO levy is vital to enable Ireland to meet its 40% target for electricity generated from renewable sources by 2020, which in turn is important for the achievement of Ireland's 16% EU 2020 target for renewable energy. The PSO levy has supported the connection of over 3,000 MW of renewable energy to the electricity grid and will continue to support further renewable energy connection so that the 40% target for renewable electricity penetration by 2020 is met.
The calculation of the level of the PSO levy is a matter for the Commission on Energy Regulation (CER). With regard to changing the current method for charging the PSO levy to a kWh rate, the EU Commission has made clear in the State Aid notifications related to the PSO for peat and renewables that it is not permissible under the Treaty of the Functioning of the European Union to impose the levy as a consumption per kWh.