The price increase will affect all electricity customers in every household in Ireland.
Electricity prices across the country will increase by over €50 per household from today (Thursday, October 1).
The Public Service Obligation (PSO) levy is set to rise to €88.80 per household per year, compared to last year's levy charge of just €36.68. This marks the second-highest level that the levy has been since it was first introduced in 2010.
The annual levy is used to support the renewable energy sector, and while this levy is increasing, it is expected that customers should be able to negotiate with their electricity supplier and potentially see their electricity costs decrease overall.
Earlier this year, the Commission for Regulation of Utilities published a proposed decision paper regarding the calculations for the PSO levy for the period 1 October 2020 to 30 September 2021.
As stated in that paper, the "PSO levy is a subsidy charged to all electricity customers in Ireland and was originally designed by the Irish Government to support its national policy objectives related to renewable energy, indigenous fuels (e.g. peat) and security of supply. The proceeds are used to pay for the relevant costs incurred by supported electricity generators which are not covered by the market."