The Commission for Regulation of Utilities (CRU) has announced that the PSO levy – a charge on electricity customers to support the generation of electricity from renewables – will fall come October.
Following a review, the CRU has calculated that an overall PSO (Public Service Obligation) levy of €263.70 million will be required for the 2021/2022 PSO year – October 1, 2021, to September 30, 2022.
This is a 33% decrease on the 2020/2021 levy of €393.13 million.
From a customer impact perspective, the difference in the monthly PSO levy amount between the 2020/2021 and the 2021/2022 PSO levy period that customers will have to pay will be:
- Domestic customers (34% reduction): €4.30 per month (previously €6.52 per month);
- Small commercial customers (36% reduction): €13.63 per month (previously €21.41 per month);
- Medium/large customers (41% reduction): €1.63kVA (previously €2.78kVA).
However, while the next year will see a decrease in the PSO levy for customers, its “inverse relationship with wholesale fuel costs” means that many have experienced price increases by suppliers over the last number of months, as CRU chairperson Aoife MacEvilly pointed out.
Supplier price increases
From September 1, SSE Airtricity will increase its standard household energy prices.
The price change will see a typical household bill increase by 9.8% on average, equivalent to around €3.89 per week for dual fuel customers and €2.27 per week for single fuel.
Last month, Pinergy announced an increase to energy prices, taking effect from later in August. The change will result in a standard unit rate price increase of 3.5c.
Pinergy CEO Enda Gunnell said at the time that it was regrettable that “due to the continued and significant infrastructural supply issues and wholesale pricing outside of our control” prices for customers would increase.
“We have raised these issues on behalf of our customers with both policymakers and regulators in recent weeks. Unfortunately, this cycle of price increases is likely to continue until real action is taken,” he added.
“We had hoped the energy transition to net-zero carbon would be smooth. Regrettably, it seems that homes and businesses will have to bear the increased costs, at least in the short term.”
From the first day of August, Electric Ireland has increased residential electricity prices by 9%, and residential gas prices by 7.8%.
Meanwhile, from August 8, Bord Gáis Energy will increase a typical gas bill by €8.36 per month and electricity bill by €11.39 per month.
The CRU’s Aoife MacEvilly has advised customers that increases to a bill “can be beaten by customers who renegotiate with their supplier or switch to a new provider where they could save over €300”.
Price hikes having a ‘crippling effect’
Sinn Féin spokesperson on climate action, communications and transport Darren O’Rourke has previously said that “constant” energy price hikes are having a “crippling effect”.
He said these recent hikes “could not come at a worse time for people”.
“According to figures from Eurostat, electricity prices in Ireland are 23% above the EU average and the fourth most expensive in the EU,” the Meath East TD said.
“Households are being hammered with energy prices here. On top of the cost of rent, childcare and insurance, many people find themselves under severe financial pressure.”