Dáil Éireann Debate, Wednesday - 7 October 2020
34. Deputy Seán Haughey asked the Minister for Environment, Climate and Communications the reason there will be a 130% increase in the PSO levy charged to all electricity customers in 2020/2021; if he has consulted with the Commission for Regulation of Utilities on the issue; and if he will make a statement on the matter. [29094/20]
Amharc ar fhreagraThe 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 electricity policy objectives for renewables and security of supply. From a policy standpoint, the PSO has been and will continue to be a vital policy support for the development of renewable electricity and to enable Ireland to reach EU renewable energy targets and our own national energy and climate targets. Under the PSO legislation, the calculation of the Levy is strictly a matter for the Commission for Regulation of Utilities (CRU), 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 and the Public Service Obligations Order 2002 (S.I. 217 of 2002) under which the CRU is assigned responsibility for the calculation of the levy each year. The methodology for determining the PSO levy charge is set out in the Public Service Obligations Order 2002 (S.I. 217 of 2002).
The CRU issued its proposed decision paper on the 2020/21 PSO levy for consultation on 8th June 2020 in accordance with its annual process of determining the PSO levy in line with its function above. This document is available in the public domain here https://www.cru.ie/wp-content/uploads/2020/06/2020-21-PSO-Proposed-Decision.pdf.
The CRU then published its decision on the amount of the PSO for 2020/2021 on 31st July 2020 and it is also available in the public domain here
https://www.cru.ie/wp-content/uploads/2020/07/CRU20086-PSO-Decision-Paper-2020-21.pdf .
The CRU’s decision on the PSO for 2020/21 will result in an increase in the PSO for households of €3.68 per month. The decision paper includes detailed material on reasons for the increase, under the headings upward and downward drivers of the levy.
Under the Electricity Regulation Act, the CRU is directly responsible for the performance of its functions to a Joint Committee of the Oireachtas, and not to me as Minister. The Deputy may wish to note that CRU provide a dedicated email address for Oireachtas members, which enables them raise questions directly to CRU at oireachtas@cru.ie for timely direct reply.
