CSNA urges retailers to ‘act now’ as electricity bill increase looms
With the reinstatement of the PSO Levy from October, electricity bills are set to rise. Businesses are advised to review their energy needs to avoid paying for unused capacity and mitigate the impact of these increases
Print3 September 2024
Members are most likely unaware that a new PSO (Public Service Obligation) Levy has been approved by CRU (Commission for Regulation of Utilities).
According to the CSNA (Convenience Stores & Newsagents Association) the levy will lead to an unwelcome addition to electricity bills from October.
The PSO Levy was not applied last October, and for the previous 12 months (October ’22-Sept ’23), the CRU approved a credit to energy customers due to the ‘phenomenal surpluses being made by the electricity companies’.
Energy regulator
The independent body of convenience store retailers and newsagents in Ireland noted that detailed calculations provided to the Energy Regulator suggest that there will be a shortfall of €251 million.
The amount of credit applied by way of the 2022/23 Decision was €491 million, it added.
The primary objection that business customers have to the PSO Levy is ‘the lack of a level playing pitch; Medium and Large customers have their Levy calculated on the capacity of their business, rather than their actual consumption.‘
Maximum Import Capacity
CSNA highlighted that there have been extraordinary energy-saving devices put into its members’ businesses which have reduced consumption, but as long as customers’ energy provider is billing them based on the original information given to them by the Network provider, the MIC (Maximum Import Capacity).
If the MIC is too high, customers will be paying for more capacity than they need, it added.
The new Levy is set at €18.86 per kVA (Annual) or €1.57 per kVA (Monthly). If customers MIC is 50, then their monthly bill will have an extra 50x €1.57 applied, (€78.50, or an extra €942 in the 12 month period).
Within the past two years, the PSO Levy did not feature as a business expense but from next October, ‘it will ensure that customers’ bills are more expensive.‘
Customers may wish to seek the advice from their electrician and conduct a survey of their actual needs, rather than the capacity of load that was accorded to the premises when it was first connected to the Network.
ESB Networks are obliged to reduce capacity where warranted and while there may be a charge, in many instances the savings exceed this charge, CSNA added.
Read more: CSNA urges greater supports needed for retailers to survive increased costs
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