Starting on October 1st, households will pay an additional yearly fee of around €40 on their power bills in order to support the production of electricity from renewable energy sources, reports Breaking News.
Additionally, small business power providers will see price increases of almost €155 over a 12-month period.
The rises come after the energy regulator confirmed on Thursday that €251.79 million is needed for the Public Service Obligation (PSO) Levy, which will be imposed on all electricity users starting on October 1.
The amount is over 27 million more than the €225 million preliminary estimate that the Commission for Regulation of Utilities released in June, reports Breaking News.
For the preceding twelve months, the PSO Levy was zero.
For home power users, the hike will mean a monthly PSO fee of €3.23 or an annual cost of €38.76 starting in October.
Customers that operate small businesses will see a monthly rise in their power prices of €12.91 as a result of the adjustment, or an annual increase of €154.92.
The PSO levy is a yearly fee designed to offset the cost of producing electricity through solar panel and wind farm activities, reports Breaking News.
The CRU stated that an assessment of all the data supplied by energy providers was the reason for the PSO Levy’s rise for the upcoming year, which was higher than anticipated.
It did, however, also note that fluctuations in forward fuel and carbon costs, as well as foreign currency rates, had helped to contain the magnitude of the PSO Levy.
According to the CRU, Ireland’s ability to reach its national goals for producing power from renewable sources depends on the PSO Levy.
“The PSO is key in supporting renewable projects which play a vital role in lowering carbon emissions, reducing the impact of fossil fuels on the environment and reducing our dependency on countries which export fossil fuels,” the CRU said, reports Breaking News.
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