CRU announces PSO levy to be zero for upcoming year

Electricity customers can breathe a slight sigh of relief, for now at least, as the Commission for Regulation of Utilities (CRU) has confirmed that the PSO levy will be zero for the 2023/2024 period.

The PSO levy is a Government levy which is used to support renewable energy generation in Ireland. It's applied to all residential electricity bills and is set by the CRU each August for the following October to September period. 

How does the PSO levy work?

To encourage investment in renewable energy, operators of wind and solar farms are guaranteed a minimum price for the electricity they produce. In recent years this price has been higher than the overall price of electricity on the wholesale market. So the PSO levy was used to subsidise wind and solar farms by giving them a top-up payment.  

But wholesale electricity prices are currently so high that no top-up payments or subsidies are needed. This is why the levy is being set to zero.

Recent PSO levy history

Last year the CRU also set the PSO levy to zero.

However some wind farm operators were making so much money due to sky-high electricity prices that they had to give some of the money back.

As a result, electricity customers have been receiving a €12.73 monthly PSO levy refund on their bills. This started in March and will continue until September.  

The CRU also considered another small refund for this year, but has decided to use the money saved to offset against any potential PSO levy increases in the coming years instead.

Since the PSO levy was first introduced in 2010, it has been as low as -€89.10 (i.e. a credit to customers) to as high as almost €105 a year.

The pros and cons of a PSO levy decrease

While on first glance it might appear to be good news that the PSO levy has been set to zero, the only reason this has happened is because wholesale electricity prices are at such high levels.

And the immediate outlook doesn't look great.

We’re now heading into autumn with gas and electricity prices at the same record levels they were at last year with little reprieve in sight.   

Read more

Earlier in the year Ireland successfully held its first ever offshore wind auction. But what does it mean for the consumer? And will it lead to lower electricity prices? Read our in-depth guide.

Looking to save?

Amid record energy prices, it's never been more important to be on the best deal for your gas and electricity.

Big savings are available to people who switch energy supplier. 

The good news is that switching energy supplier is quick, easy and free on bonkers.ie.

Use our energy comparison tool right now to compare gas, and electricity deals from all suppliers in Ireland.

Once you find the right plan for you, we can help you to switch and save in seconds!

And don’t forget, we can also help you switch and save across a wide range of other bills on bonkers.ie. Check out our broadband, banking, and insurance comparison tools to learn more.