30-Second Overview
The Commission for Regulation of Utilities (CRU) has approved an overall 55% reduction in the electricity PSO levy for 2025/2026. Initially, a 40% reduction was approved, effective from 1 Oct 2025. On 20 Oct 2025, the CRU announced a further reduction. The lower reduced rates take effect from 1 December 2025. This change means:
- Small businesses will save €87 per year
- Large businesses could save thousands, depending on their MIC setting
- Domestic customers will see a reduction of €21 per year
⚡ 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 saving insights 👇
What is the electricity PSO Levy?
The Public Service Obligation (PSO) Levy is a government-mandated charge applied to all electricity customers in Ireland, including both commercial and domestic accounts. It helps fund renewable energy generation to support Ireland’s long-term sustainability targets.
- Reviewed annually by the CRU
- Adjusted every year on 1 October
- For 2025/2026 a further reduction takes effect from 1 December
- Applied regardless of energy usage
Electricity PSO Levy 2025/26
From 1 October 2025, the CRU has decided to reduce the overall PSO levy from €251.79 million in 2024/2025 to €162.37 million in 2025/2026 – a reduction of €89.42 million. On 20 October 2025, the CRU announced a further reduction in the PSO levy to €125.38 million. The new reduced rates will take effect from 1 December 2025.
Revised Electricity PSO Levy by Customer Category
| PSO Customer Category | Original Monthly PSO Levy 2025/2026 (€ per customer) |
Revised Monthly PSO Levy 2025/2026 (€ per customer) |
|---|---|---|
| Domestic | €2.01 | €1.46 |
| Small commercial (MIC < 30 kVA) | €7.77 | €5.65 |
| Medium/Large commercial (MIC ≥ 30 kVA) | €0.96/kVA | €0.70/kVA |
Note: MIC = Maximum Import Capacity. All rates are exclusive of VAT. All electricity suppliers are required to apply these further reductions from 1 December 2025.
Original Electricity PSO Levy by Customer Category
| PSO Customer Category | Monthly PSO Levy 2024/2025 (€ per customer) |
Monthly PSO Levy 2025/2026 (€ per customer) |
|---|---|---|
| Domestic | €3.23 | €2.01 |
| Small commercial (MIC < 30 kVA) | €12.91 | €7.77 |
| Medium/Large commercial (MIC ≥ 30 kVA) | €1.57/kVA | €0.96/kVA |
Note: MIC = Maximum Import Capacity. All rates are exclusive of VAT. All electricity suppliers are required to apply these reductions from 1 October 2025.
⚡Our energy experts can let you know if you save even more on energy charges. Just click on the buttons below for a free bill analysis and price check.
How much will the PSO Levy cost annually for 2025/26?
The proposed PSO levy rates for businesses and domestic consumers from 1 December 2025 until 30 September 2026 are:
- Small business (MIC < 30kVA): €67.80 per year
- Large business (e.g. 200kVA MIC): €1,680 per year
- Domestic user: €17.52 per year
Note: The exact cost depends on your business's Maximum Import Capacity (MIC). To find out more about the regulator's decision, click on the following link: Revised Electricity PSO Levy for 2025/2026 and Original Electricity PSO Levy for 2025/2026.
Why is the Electricity PSO Levy Decreasing?
The PSO Levy funds subsidies for renewable electricity generation in Ireland, such as wind farms, solar farms, and biomass plants. These subsidies ensure that renewable generators receive a guaranteed level of income, even when wholesale electricity prices are low.
For the 2025/2026 PSO year, the Commission for Regulation of Utilities (CRU) is forecasting higher wholesale electricity prices and strong output from renewable generators. As a result:
- Less financial support is needed to top up renewable generator revenues
- The overall PSO Levy requirement has fallen from €251.79 million to €125.38 million
- This allows for a total 55% reduction in PSO charges across all customer categories
The CRU calculates the PSO Levy annually using detailed models that forecast:
- Expected wholesale electricity market prices
- Projected renewable energy output
- Support scheme requirements (e.g., REFIT, RESS)
These forecasts indicated that renewable projects will earn more from the market in 2025/2026, reducing the amount of support payments needed from PSO funds.
Are Other Electricity Charges Increasing?
Yes. While the PSO levy is decreasing, total electricity costs may still rise. Why?
- ESB Networks has requested a significant increase in network charges
- Proposed investment: €10.1 – €13.4 billion in Ireland’s electricity grid infrastructure
- These regulated charges will likely offset PSO savings
How to Get the Best Business Electricity Deal in 2025
Amid fluctuating regulated charges, locking in the right electricity tariff is crucial. Utilityfair makes the process fast, free and simple 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 that you never roll into expensive variable rates.
- In a nutshell, we simplify energy contract management, and it's completely free.
👉 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)
It is a subsidy charged to all electricity customers in Ireland and funds renewable energy generation as part of the government's energy transition goals.
The PSO Levy will be reduced to €1.46 per month for domestic customers, €5.65 per month for small businesses, and €0.70 per kVA of MIC per month for medium to large businesses.
The CRU has proposed that the PSO Levy required for 2025/2026 is €125.38 million This will fund renewable energy projects and support Ireland's transition to sustainable electricity generation. This is primarily due to wholesale electricity market prices, which affect the level of subsidy required by renewable generators.
Yes. Suppliers are required to pass through the levy change to all customers.
No. The PSO Levy is charged to all electricity users, and suppliers are required to pass this cost directly to customers through electricity bills. The PSO Levy is mandatory and cannot be avoided. However, you can minimise your overall electricity costs by ensuring you are on the best plan for your business.
Utilityfair’s energy experts can review your electricity bills and ensure that your meter's Maximum Import Capacity is set correctly and you are on the best possible electricity prices, helping to reduce overall costs.
The MIC is the agreed maximum amount of electricity that can be drawn from the network at your business premises. It is a key factor in determining network charges and the PSO levy for medium to large businesses.
The most effective way to manage your electricity costs is to secure the best available tariff for your business. For assistance with this, you can contact energy experts who can review your bills and find the best deals in the market.
