Help & Questions - Business Electricity - PSO Levy

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What does PSO stand for and what is the levy for?

PSO stands for Public Service Obligation. The PSO levy is designed to support the national policy objectives of security of energy supply, the use of indigenous fuels (e.g. peat) and of the use renewable energy sources in electricity generation. Specifically, the proceeds of the levy are used to recoup the additional costs incurred by the ESB and other suppliers in having to source a proportion of their electricity supplies from such generators.

Whose decision was it to impose a levy on electricity customers?

The policy and terms associated with PSO levy supported plant are mandated by Government and approved by the European Commission.

What is the role of the Commission for Energy Regulation (CER) in setting the levy?

The Commission for Energy Regulation does not set the policy and terms associated with PSO levy supported plant and, as such, has no real control over the level of the PSO levy that arises from the policy and terms associated with PSO levy supported plant. The levy is calculated by the Commission for Energy Regulation in accordance with the relevant legislation and particular terms of the various PSO schemes.

How much is the PSO levy for residential customers and how will it be charged for it?

The PSO levy for small business customers (Maximum import capacity < 30kVA) is €4.77 ex VAT per month end within the period covered by the electricity bill. For very large business customers (Maximum import capacity => 30kVA) the levy is charged by kilovolt-ampere and the rate is €0.71 ex VAT per kVA per month end within the period covered by the electricity bill.

When is the PSO levy applicable from?

The current PSO levy rates are applicable from 1st October 2011 to 30th September 2012.