Thursday will see over one million electricity customers hit with a double whammy of an increase in the price of electricity as well as an increase in the PSO levy.
The Public Service Obligation levy (PSO levy), is a Government levy that is charged to all electricity customers in Ireland. The money collected from the PSO levy is now solely used to support the renewable energy sector in Ireland (having previously been used to support the peat sector too).
The Commission for Regulation of Utilities (CRU) sets the level of the PSO levy every year, which runs from 1st October until 30th September.
The levy for last year was €38.68 a year including VAT, but will rise to €88.80 a year including VAT for the 2020/21 period. This is the second highest the levy has ever been since it was introduced in 2010.
As well as an increase in the PSO levy, customers of Electric Ireland, the country’s biggest electricity supplier, will also have to contend with a 3.4% increase in the unit price of their electricity, which will add around €35 a year to the average annual bill. This comes into effect on the same day as the PSO levy increase.
Meanwhile customers of Prepaypower will be faced with a price rise of 2.9% - due to come into effect on 4th October.
In both cases the suppliers have cited increased electricity network operating costs as the main reason for the price hikes.
Commenting on the price increase, Head of Communications and PR Bonkers.ie, Daragh Cassidy, said it’s very important that customers switch supplier regularly to ensure they are getting the best deals.
He added: “Energy companies all offer really great introductory rates to those who switch to them. However these discounted rates usually expire after 12 months. This means if you don’t shop around and switch again after your 12 months are up you’ll be bumped onto the supplier’s far higher standard rates and will end up paying far more each year for your gas and electricity.”
Mr Cassidy also advised that discounts of over 40% are now available to those who switch, which could mean savings almost €500.
Source: www.businessworld.ie
