Significant increases In PSO levy expected in October

Association advises members to review their energy contracts to ensure they are benefitting from lower wholesale energy costs.



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23 June 2020

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The Convenience Stores and Newsagents Association (CSNA) reports commercial energy users will be alarmed with the news from the regulatory Authority CRU which suggests that commercial users of electricity will see their bills increasing significantly from October this year.

Public Service Obligation (PSO) levies are charged in three distinct sectors: Domestic, Small Commercial and Medium/Large Commercial.

According to the CSNA, small commercial customers pay €10.35 per calendar month for the PSO Levy. However, based on the CRU’s proposed decision paper, this is set to increase by 137% to €24.50 per calendar month.

The association adds that for those medium to large commercial users, the payment is by way of KMH (which is based upon your MIC rating). The current PSO Levy is charged at €1.22 per KMH but this will increase to €3.36, a 175% increase from October.

“These increases will put hundreds, if not thousands of euro additional charges onto hard pressed businesses from October this year,” the CSNA said. “Whilst it is acknowledged that for many there has been a reduction in energy costs over the past 12 months, these decreases only manifest themselves for those who have not got lengthy contract pricing with their energy providers.”

The association has subsequently advised members to review their energy contracts to ensure they are benefitting from lower wholesale energy costs.

The CSNA has also advised members that it would be happy to offer members assistance in this regard, and to contact the office on 045-535050 or email

The CRU’s proposed decision can be found here. Following this, a final decision and PSO Levy of 2020/21 will be published before 1 August, 2020.

According to Aoife MacEvilly, CRU chairperson: “The PSO Levy this year will be, for the first time since its inception, be purely dedicated to providing support to renewable generation as we approach our 40% renewable generation target.

“The cost of the Levy has been trending upwards, as the level of renewable electricity supported by the scheme has increased,” she added. “However, there is a clear variability to the cost of the levy for each year, due to the volatility in wholesale electricity prices. While the CRU is fully aware of the impact of any changes to the charges on a customer’s bill, the proposed increase to a bill can be beaten by customers who renegotiate with their supplier or switch to a new provider where they could save over €300.”



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