Understanding the Electricity PSO Levy for Irish Businesses

30-Second Overview

The Public Service Obligation (PSO) Levy is a government charge added to electricity bills in Ireland to support renewable energy generation.

• It applies to all electricity users and varies by business size, based on your Maximum Import Capacity (MIC).
• Businesses with higher MIC levels typically pay more.
• While the levy itself is non-negotiable, you can reduce its impact by ensuring your MIC is correctly set and by switching to more competitive energy contracts.
• Utilityfair helps businesses manage these costs effectively.

⚡ 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. It's completely free. No obligation for you, just saving insights 👇

What is the Electricity PSO Levy?

The Public Service Obligation (PSO) Levy is a government-imposed charge that applies to all electricity customers in Ireland.

• It's used to subsidise the generation of renewable electricity (including wind, solar, hydro, and biomass).
• It is reviewed annually by the Commission for Regulation of Utilities (CRU) and adjusted to reflect energy market conditions.

How the Electricity PSO Levy Works?

• Annual Review Period: The PSO Levy is set by the energy regulator (CRU). It is reviewed annually with any changes becoming effective on 1 October each year.
• Counter-Cyclical Structure: The electricity PSO levy is lower when wholesale electricity prices are higher, and higher when electricity prices are low. This is because generation from renewable sources requires a lower subsidy when wholesale electricity prices are high - they receive a higher price in the open market.
• R-Factor Adjustments: The R-factor mechanism adjusts any under-collection or over-collection in the PSO levy from the previous year. The PSO levy forecast is compared to the actual outcome to balance discrepancies in subsequent years.

Electricity PSO Levy Timeline & Trends

• 2022-2023: The PSO levy was negative, giving customers a credit (small businesses saw ~€475/year saved).
• 2023-2024: The PSO was set to zero, removing credits and costs to customers.
• 2024-2025: The charges returned with structured charges based on the MIC.
• 2025-2026: The electricity PSO levy for 2026 has been reduced by 55%.

How does the Electricity PSO Levy Affect Businesses?

The PSO Levy is a fixed line item on your electricity bill and is not subject to negotiation with your energy supplier. 

• The levy does not vary with your actual electricity charge.
• It applies regardless of your contract type or supplier.
• Suppliers don't profit from this charge.

How Utilityfair Can Help Reduce Business Energy Bills?

The quickest and easiest way to find the best business energy deals is to speak to Utilityfair's energy experts. We have the latest electricity prices from all suppliers in our models and can show you the best business electricity and business gas deal in a matter of minutes. It's completely free. There is no need to phone suppliers individually and waste time on hold.

• Our experts can ensure your MIC is correctly set to prevent you from overpaying on your PSO levy.
• We can compare all Irish suppliers in minutes, guaranteeing you are on the best possible electricity deal.
• If you choose to switch to a cheaper energy deal, we can set it up for you hassle-free, saving you time and money.
• We will keep track of your contract end date, preventing you from being automatically rolled into expensive rates.

👉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.