The PSO Levy is a charge applied to all electricity customers in Ireland, you’ve probably seen it on an electricity bill below the cost of your electricity usage.

The Levy is due from October 1 through to September 30 with prices for the year set by the Commission for the Regulation of Utilities.

This is a universal charge for all electricity customers meant to support the expansion of renewable energy generation in Ireland.

All metered domestic and commercial electricity customers in Ireland are required to pay the PSO Levy, which will be part of their bill.

The current PSO Levy which is paid by customers is €3.52 per month, totaling €42.25 per year for domestic customers. The levy does not change regardless of how much of how little electricity is used by a premises.

For commercial premises, the PSO Levy is determined by their Maximum Import Capacity (MIC). The current rates for 2024/25 are:

Government policies such as the Renewable Energy Support Scheme scheme are meant to encourage the growth of renewable energy in Ireland, primarily from wind and solar.

It does this by providing guaranteed prices for renewables suppliers, encouraging them to make a financial investment in new wind and solar farms.

The PSO Levy is the current financial mechanism which supports those guaranteed electricity prices.

When wholesale electricity prices are high, again with gas prices shifting the needle, these renewable suppliers do not need any financial support. However, when prices go down they are paid with proceeds from the levy to meet that guaranteed price.

The PSO Levy has supported other schemes in years prior to the RESS, which was first introduced in 2020.

The PSO Levy is fixed at a specific level for the year, but not longer than that. The CRU recalculates the PSO Levy each year, with the rates typically announced during the summer ahead of the next year.

The Levy may increase or decrease based on the price of wholesale electricity, which is largely decided by gas prices.

If electricity prices are high, then the levy will decrease. However, if electricity prices are low then the levy will go up.

Like all other electricity products, the PSO Levy is subjected to VAT at a current rate of 9%.

PSO Levy Over Time

No, Gas customers are not subject to the PSO Levy. They will instead pay the carbon tax for their gas usage.

While customers cannot affect the cost of the PSO Levy, they can still save money on their electricity by switching electricity providers or reducing their consumption.