Dáil Éireann Debate, Thursday - 15 June 2023
125. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he plans to review the application of the PSO levy given the disproportionate burden it currently places on households, in particular low-income households; if alternative funding models, including direct state investment have been considered to support renewable projects; and if he will make a statement on the matter. [28916/23]
View answerThe Public Service Obligation (PSO) levy is a vital policy support for the development of renewable electricity and to enable Ireland reach our national and EU energy and climate targets. The PSO provides support for renewable generators under a number of Government schemes, including the Renewable Electricity Support Scheme (RESS) and the Renewable Energy Feed-In Tariff (REFIT) schemes.
The PSO levy is apportioned across domestic and business consumers according to the methodology set out in the Electricity Regulation Act,1999. The CRU has statutory responsibility to calculate the PSO on an annual basis and to ensure that the scheme is administered appropriately and efficiently.
Due to unprecedented and sustained levels of wholesale electricity prices, the CRU calculated that the PSO levy for the 2022/23 PSO Year would be negative. In June 2022, Government amended the Electricity Regulation Act, 1999 to allow the CRU, if it deems it appropriate, to direct that electricity customers (both households and businesses) are credited with a benefit, if the PSO levy has been calculated as a negative.
On 1 October 2022, the PSO levy on electricity customers' bills was set to zero, while the CRU and EirGrid developed a mechanism to credit customers with the PSO benefit. From 1 March 2023, electricity customers have been receiving a PSO benefit on their bills. These benefit payments will continue until at least 30 September 2023.
