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Public Service Obligation Levy

Dáil Éireann Debate, Tuesday - 15 September 2020

Tuesday, 15 September 2020

Questions (181, 182)

Darren O'Rourke

Question:

181. Deputy Darren O'Rourke asked the Minister for Climate Action and Communication Networks the amount collected from the PSO levy from electricity customers in each of the years 2010 to 2019, in tabular form; and if he will make a statement on the matter. [23631/20]

View answer

Darren O'Rourke

Question:

182. Deputy Darren O'Rourke asked the Minister for Climate Action and Communication Networks the areas in which the PSO levy collected from electricity customers in 2019 was spent; and if he will make a statement on the matter. [23632/20]

View answer

Written answers (Question to Climate)

I propose to take Questions Nos. 181 and 182 together.

The total amount and details of the PSO levy for each levy year are calculated and published annually by the Commission for Regulation of Utilities (CRU). This material is publicly available at www.cru.ie.

The table below shows the annual amounts for the PSO levy for each year since 2010/11.

 Year

€ Millions

2010/11

157

2011/12

92

2012/13

131

2013/14

211

2014/15

335

2015/16

325

2016/17

392

2017/18

472

2018/19

209

2019/20

176

2020/21

393

Under the PSO legislation, the calculation of the Levy is strictly a matter for the Commission for Regulation of Utilities, the independent electricity and gas regulator. 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. 217 of 2002), under which the CRU is assigned responsibility for calculation of the levy each year. The methodology for determining the PSO levy charge is also set out in S.I. 217 of 2002.The PSO levy has been in place since 2001, and is a charge on all electricity customers without exception. It consists of a set of support schemes designed to facilitate national policy objectives for renewables and security of supply. The PSO levy supports the development of renewable electricity and is a key enabler to decarbonising our electricity system over the longer term in line with the Climate Action Plan and the Programme for Government.

In the coming years as we move decisively to confront the challenge of global warming and decarbonise electricity, and to promote a green recovery in the wake of Covid-19, the importance of the PSO will continue as a vital support for increasing renewable electricity which is a national policy objective for good climate and energy reasons. The Programme for Government confirms that a reliable supply of safe, secure and clean energy is essential in order to deliver a phase-out of fossil fuels and that the Government is committed to the rapid decarbonisation of the energy sector and will take the necessary action to deliver at least 70% renewable electricity by 2030.

The latest CRU decision paper for 2020/21 https://www.cru.ie/wp-content/uploads/2020/07/CRU20086-PSO-Decision-Paper-2020-21.pdf gives details of schemes supported for the 2019/2020 and 2020/2021 periods (see Table 6.2). In 2019/2020, the PSO levy was used primarily to fund renewable energy sources of electricity such as onshore wind and biomass as well as peat generation. For the period 2020/21, the PSO Levy is used exclusively to fund renewable electricity.

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