What is the Electricity PSO Levy?

30-Second Overview

The Electricity PSO Levy is a government-regulated charge added to all commercial and domestic electricity customers in Ireland. It supports and subsidises the generation of electricity from sustainable and renewable sources and is reviewed annually by the Commission for Regulation of Utilities (CRU). Businesses need to keep on top of the electricity PSO levy and other regulatory charges to minimise energy costs.

The electricity PSO levy is largely based on Maximum Import Capacity (MIC) - If your meter's Maximum Import Capacity (MIC) is set too high, you could be overpaying on the electricity PSO levy. Just ask our energy experts to check your bill, and we will be able to tell you straight away.

⚡ To make sure that your business is on the best electricity rate, or to compare prices from all suppliers, upload a recent electricity bill using the link below, and our energy experts will analyse it for free. No obligation for you, just savings insights 👇

What is the electricity PSO Levy?

The Public Service Obligation Levy (PSO) is a subsidy charged to all electricity customers in Ireland to support electricity generation from sustainable and renewable sources. It is reviewed by the Commission for Regulation of Utilities (CRU) every year, with any increase or decrease becoming effective on October 1st each year.

Why the PSO Levy Falls When Energy Prices Rise?

The PSO levy is a countercyclical measure. When natural gas prices are low, the PSO levy is high; and when natural gas prices are high, the PSO levy is low. The reason for this is that wind farms and solar farms are guaranteed a minimum price for the electricity generated. The PSO currently supports the Government Renewable Energy Feed-In Tariff (REFIT) and the Renewable Electricity Support Scheme (RESS)

A large portion of electricity in Ireland is generated using natural gas-fired power stations. When natural gas prices are low, it is cheaper to generate electricity using gas, which drives down the price that wind farms and solar farms can achieve in the open market. A higher subsidy is then required to meet the minimum price guarantee.

When natural gas prices are high, it is more expensive to generate electricity using natural gas. Solar farms and wind farms can achieve a higher price for electricity in the open market. This results in a lower subsidy being required to meet the minimum price guarantee.

Electricity PSO Levy Rates for Businesses in Ireland

The amount of PSO paid on commercial meters is based on the Maximum Import Capacity (MIC) setting. The PSO levy rates for businesses and domestic consumers from the 1st of October 2025 until 30 September 2026 are:

• PSO where MIC < 30kVA = €5.65 per month (ex. VAT)
• PSO where MIC => 30kVA = €0.70 per kVA per month (ex. VAT)
• PSO for domestic meters = €1.46 per month (ex. VAT)

The electricity PSO levy for commercial and domestic meters since 2020/2021 is set out in the table below.

Electricity suppliers must pass through the PSO levy to customers. The suppliers are simply collection agents for regulatory charges via customer bills and do not take any profit on those charges.

💡 The only way to counter regulatory charges is to make sure that you are on the best electricity deal in the market. Our energy experts can review your electricity bills so that you know you are getting the best possible electricity prices.

How much will the electricity PSO levy cost annually?

• A small business with a MIC of less than 30kVA will pay an annual PSO levy of €155, which will be added to electricity bills.
• A large business with a MIC greater than 30kVA will see the PSO levy increase to €1.57 per kVA of MIC per month. For example, a business with an MIC setting of 200kVA will pay a PSO levy of €3,768 per annum.
• Domestic electricity users will pay a PSO levy equal to €38 per annum ex VAT.
• Many businesses with an MIC greater than 30kVA can reduce their PSO levy and capacity charges by reviewing their MIC and adjusting it downwards where the capacity setting is too high.

How to get the best business electricity deal?

The quickest and easiest way to lower your business energy bills is to ensure you're on the most competitive commercial electricity and gas plan. Many businesses overpay simply because they haven’t reviewed their contract. We can solve that problem for you, and it's completely free. Utilityfair makes the process easy by:

• Comparing all energy suppliers to find the best available rates tailored to your usage.
• Once you have chosen your preferred option, we instruct suppliers to move you to better rates hassle-free, saving you time and money.
• Monitoring your new contract end date to make sure you never roll into expensive variable rates.
• In a nutshell, we simplify energy contract management, so you can focus on running your business.

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