Households get a small break after electricity levy reduced

"The International Energy Agency found that retail prices in Ireland are three times higher than wholesale prices - one of the highest gaps in the world. The agency also found that the gap between what it costs to produce energy in this country and what it is sold for is one of the largest in the world."

"Now the Commission for the Regulation of Utilities (CRU) has confirmed that the levy that applies to all electricity bills is coming down from December. The CRU originally said the Public Service Obligation (PSO) levy, that is in place to help subsidise renewal electricity generation, was to be €24 for the year from December. It has now recalculated the levy and has decided to lower it to €17.52. This is down from €39 last year."

"Daragh Cassidy, of price comparison site Bonkers.ie, said the move was good news for consumers. "This is the first time that I can recall that the CRU has had to adjust the PSO levy mid-year," he said. Mr Cassidy said that in August the CRU announced that the levy would be €2.01 a month excluding VAT for a period running from October 1, 2025, to the end of September 2026 - down from €3.23 a month last year. "But the CRU has kind of admitted that it got its sums wrong based on inaccurate information that was provided to it as well as an error in its calculations the first time around.""

More than a million households in Ireland face electricity price hikes this month, with most bills increasing by around €200 annually. Electricity companies are failing to pass wholesale energy price falls onto consumers and businesses. The International Energy Agency found retail prices in Ireland are three times higher than wholesale prices and that the gap between production cost and sale price is among the largest globally, contributing to the highest electricity prices in Europe. The Commission for the Regulation of Utilities recalculated the Public Service Obligation levy, cutting it from an earlier €24 projection to €17.52, down from €39 last year. Bonkers.ie said the CRU adjusted the levy mid-year after inaccurate information and calculation errors were identified.

Read at Irish Independent