The Commission for Energy Regulation has announced an increase of 20.2% in the PSO levy which will mean an increase of €13.84 (incl. VAT) per year.
The new total levy will now be €82.04 (incl. VAT) per year, up from €68.20. The increase will come into effect from 1 October and affects all domestic electricity customers in Ireland.
Describing it as ‘a tax on tax’, the Society of St Vincent de Paul (SVP) has told the energy regulator that the proposed 36% increase in the Public Service Obligation Levy (PSO) on electricity bills is a fourfold increase on the 2011 level, wiping out almost 50% of recent savings for electricity customers.
John-Mark McCafferty, Head of SVP Social Justice and Policy says the PSO remains ‘a largely forgotten tax’ which will raise €0.44bn in 2016/2017 to subsidise the energy industry and that with VAT added, domestic customers are effectively paying ‘a tax on a tax’.
“In the interest of social justice and fairness, we urge a review of the PSO application for low income and struggling energy customers.” he said
Commenting on the announcement, Eoin Clarke MD of Switcher.ie, said the levy is a charge we must all pay so any increase will come as unwelcome news for anyone who is already struggling to pay their energy bills.
“The average electricity bill in Ireland is a whopping €1,138 per year. We would encourage people to take a look at their energy bills and the deals that are out there, as switching to a cheaper energy supplier would more than cover the cost of the levy increase. Last year only 14% of us switched electricity supplier, which means most of us are missing out on introductory discounts on offer from other suppliers,” Mr Clarke said.
