30-Second Overview
The Public Service Obligation (PSO) Levy is returning for 2024/2025. From 1 October 2024, all Irish electricity users - including businesses and households - will see a PSO charge added to their energy bills. Although the PSO levy is increasing, falling wholesale electricity prices in Ireland may offset the impact for most users.
- Small businesses will pay €155 per year
- Domestic users will pay €38 per year
- Large businesses will pay thousands more, depending on their Maximum Import Capacity (MIC)
Note: The latest Electricity PSO Levy for 2025/26 has been approved and replaces the PSO Levy for 2024/25 on 1 October 2025.
What Is the Electricity PSO Levy?
The PSO levy is a government charge added to electricity bills in Ireland. Its purpose is to fund electricity generation from renewable sources, such as wind and solar.
The Commission for Regulation of Utilities (CRU) sets the levy annually, with rates taking effect from 1 October each year.
For the 2024/2025 PSO year, the CRU has confirmed that the levy will be reinstated at €251.79 million, after being set to zero for 2023/2024.
Electricity PSO Levy Rates for 2024/25
| PSO Customer Category | Monthly Levy 2023/24 (€ per customer) | Monthly Levy 2024/25 (€ per customer) |
|---|---|---|
| Domestic | €0.00 | €3.23 |
| Small commercial (MIC < 30 kVA) | €0.00 | €12.91 |
| Medium/Large commercial (MIC ≥ 30 kVA) | €0.00/kVA | €1.57/kVA |
Note: These rates apply from 1 October 2024 to 30 September 2025, and are exclusive of VAT.
Unfortunately, electricity suppliers must pass through the PSO levy to customers. Electricity 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 the charges 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 PSO Levy Cost Your Business Annually?
The annual PSO levy will depend on your Maximum Import Capacity (MIC) setting:
- Small business (MIC < 30 kVA): €12.91/month → €155/year
- Large business (MIC ≥ 30 kVA): €1.57/kVA/month → e.g., 200 kVA = €3,768/year
- Domestic customer: €3.23/month → €38/year
To find out more about the regulator's decision, click on the following link: PSO Levy for 2024/2025
Why Has the PSO Levy Increased?
The €251.79 million PSO cost for 2024/25 reflects a renewed emphasis on funding renewable energy projects, as Ireland moves toward its 2030 climate targets. The PSO helps support wind, biomass, and solar farms, ensuring grid stability and long-term price security.
The 2023/24 PSO levy was €0, thanks to high wholesale energy prices that reduced the need for subsidies. With wholesale prices falling again, the PSO levy is now required again.
Who Collects the Electricity PSO Levy?
The PSO levy is collected by electricity suppliers via electricity bills, and the full amount is passed through to the Transmission System Operator (EirGrid). Suppliers do not profit from this charge — they act only as collection agents.
How Can Businesses Offset the Electricity PSO Levy Cost?
The best way to minimise the impact of the PSO levy is to make sure you’re on the most competitive business electricity tariff.
Speak with Utilityfair's energy expert to quickly compare the entire commercial electricity market and get the most cost-effective deal for your business. Even with regulatory charges increasing, you could still reduce your overall electricity spend by switching supplier or renegotiating your rate.
- Free energy bill analysis
- Switch with zero disruption
- Ongoing contract monitoring to prevent rollover rates
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. Here’s how Utilityfair can help and it's completely free:
- We compare all energy suppliers to find the best available rates tailored to your usage.
- We manage the paperwork and switching process so there’s zero disruption to your business.
- We monitor contract end dates to make sure you never roll into expensive default rates.
- We simplify energy decisions, so you can focus on running your business.
👉 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)
The PSO levy (Public Service Obligation levy) is a government charge on all electricity bills in Ireland. It funds renewable energy generation, such as wind and solar, under schemes approved by the Commission for Regulation of Utilities (CRU).
For the PSO year 2024/25 (starting 1 October 2024), small businesses will pay €12.91 per month, large businesses will pay €1.57 per kVA of MIC per month, and domestic users will pay €3.23 per month (all prices exclude VAT).
The PSO levy is increasing in 2024 because the CRU has approved a €251.79 million fund to support renewable electricity projects. This follows a zero-levy year in 2023 when high market prices reduced the need for subsidies.
The new PSO levy rates take effect from 1 October 2024 and apply until 30 September 2025. These rates are reviewed and set annually by the CRU.
For commercial electricity customers, the PSO levy is based on their Maximum Import Capacity (MIC).
If your MIC is under 30 kVA, you’ll pay €12.91/month.
If your MIC is 30 kVA or higher, you’ll pay €1.57 per kVA per month (ex. VAT).
No, the PSO levy is a mandatory government charge and cannot be avoided. However, you can reduce your overall energy costs by switching to a cheaper business electricity supplier.
No. Electricity suppliers do not profit from the PSO levy. They act as collection agents, passing the charge directly to the grid operator (EirGrid) as required by regulation.
No. The PSO levy appears as a separate line item on your electricity bill. It is not included in the unit rate or standing charge from your supplier.
A business with an MIC of 200 kVA will pay €1.57 × 200 × 12 = €3,768 per year (excluding VAT) under the 2024/25 PSO levy.
You can read the official CRU decision on the 2024/25 PSO levy on the Commission for Regulation of Utilities website or via the Utilityfair summary page www.cru.ie/publications/28203/.
