30-Second Overview
For the 2021/22 period (1 October 2021 – 30 September 2022), Ireland’s Public Service Obligation (PSO) levy was significantly reduced compared to previous years, providing some relief to electricity customers. The PSO levy funds renewable energy generation and security of supply initiatives, but market conditions in 2021/22 meant a smaller collection was required.
What is the PSO Levy?
The Public Service Obligation Levy (PSO) is a government charge applied to all electricity customers in Ireland, set annually by the Commission for Regulation of Utilities (CRU). It funds:
- Renewable energy generation (wind, solar, biomass)
- Security of electricity supply
- Support for indigenous fuel generation
The PSO levy is included in your electricity bill as a separate line item, with suppliers obliged to pass it on at cost. It is reviewed by the Commission for Regulation of Utilities (CRU) every year with any increase or decrease becoming effective on 1 October each year.
The CRU reviewed the PSO levy for 2021/2022 and decided on a decrease of between 36% to 41% from 1 October 2021.
2021/2022 PSO Levy Rates & Savings
The amount of PSO you pay for your business premises is based on your Maximum Import Capacity (MIC). The PSO levy rates for businesses from 1 October 2021 to 30 September 2022 were:
| Maximum Import Capacity | PSO Levy Rates |
|---|---|
| MIC < 30kVA | €13.63 per month (ex. VAT) |
| MIC => 30kVA | €1.63 per kVA per month (ex. VAT) |
| PSO for domestic meters | €4.30 per month (ex. VAT) |
How Much Did Business and Consumers Save?
- A small business with an MIC of less than 30kVA saw the PSO levy drop to €13.63 from €21.41 per month. This is a reduction of 36% which is equivalent to €164 per annum.
- A large business with an MIC greater than 30kVA saw the PSO levy drop to €1.63 from €1.78 per kVA per month. This is a reduction of 41%. For example, a business with an MIC setting of 200kVA saw a reduction of €2,760 per annum.
Why does it matter for your business?
- The PSO levy is charged irrespective of energy usage, making it a fixed cost.
- Businesses with excessive MIC settings may overpay needlessly and should optimise capacity to reduce costs.
- Falling PSO rates in years with rising wholesale prices illustrate the inverse relationship between wholesale energy market movement and regulatory charges
How to get the best energy deal?
PSO savings are great - but optimising your electricity plan can lead to even greater cost reductions. Utilityfair’s experts can:
- Review your current energy bills
- Recommend the most cost-effective supplier and tariff
- Handle the supplier switch with zero hassle
👉 Get Started Today!
Fill out our enquiry form, click the link below or call 01 547 0999 to speak with a Utilityfair energy expert and start saving.
Frequently Asked Questions (FAQs)
A government-mandated charge to fund sustainable electricity generation across Ireland—with annual rates set by the CRU effective October 1 through the following September 30
Small businesses (MIC < 30 kVA) saved ~€164/year. Larger firms (MIC ≥30 kVA) saved upwards of €2,700 depending on capacity size.
Higher wholesale electricity prices in 2021 meant renewables earned more in the open market, reducing the need for subsidies. As a result, the PSO levy was significantly reduced—and even became negative in the following year.
Yes - adjusting your Maximum Import Capacity to match actual demand can lower overhead charges like the PSO levy and capacity charges.
