The latest PSO levy cut in Ireland puts €6 annually back in the average household’s pocket, but the real story is what the charge pays for and how it’s changed. Understanding this fee helps you see the bigger picture behind your electricity bill.

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New monthly PSO levy for domestic customers: €1.46 (excl. VAT) · Monthly reduction compared to previous rate: €0.50 · Annual cost including 9% VAT: €17.52 · Effective date: 1 December 2025

Quick snapshot

1Confirmed facts
2What’s unclear
  • Exact historical rates for 2021–2023 are not publicly summarised in the latest announcement (official CRU data may clarify)
  • How the levy cut will interact with other electricity charges (standing charges, unit rates) for total bill impact
  • Whether future cuts will continue at the same pace
3Timeline signal
4What’s next
  • Households will see lower monthly charges from December bills onward
  • Small businesses also benefit from reduced levy
  • CRU will announce next year’s rate in autumn 2026

The pattern is clear: as renewables become cheaper, the levy shrinks.

Five key figures, one narrative: the PSO levy is shrinking, and the latest cut continues a downward trend.
Label Value
Current Domestic PSO Levy €1.46 per month (excl. VAT)
Including VAT (9%) €1.59 per month
Annual Cost €17.52 (incl. VAT)
Previous Levy (2024/2025) €1.96 per month (estimated from 50c reduction)

What does the PSO levy pay for?

What is the Public Service Obligation?

Why this matters

The levy doesn’t change with your usage — every household pays the same flat monthly amount, which means it hits low‑consumption homes harder as a share of their bill.

How is the PSO levy spent on renewable energy?

Bottom line: The PSO levy is effectively Ireland’s mechanism for paying the difference between the market price of electricity and the cost of supporting renewables and peat generation. Householders get predictable costs; generators get guaranteed income.

What is the PSO levy for 2026?

What is the exact rate for domestic customers?

  • The revised PSO levy for domestic customers is €1.46 per month (excl. VAT) from 1 December 2025 to 30 September 2026 (TheJournal.ie (Irish news outlet)).
  • Including 9% VAT, the monthly charge becomes €1.59, adding up to €19.10 per year (Energy Efficiency (energy advice site)).

How does the 2026 rate compare to previous years?

  • The initial 2025/26 rate had been set at €2.01 per month for domestic customers — the new cut reduces it by 27% (TheJournal.ie (Irish news outlet)).
  • Small commercial customers see their rate drop from €7.77 to €5.65 per month (Pinergy (electricity supplier)).

The implication: the cut reflects falling renewable costs, not a structural change to how the levy is collected.

The trade-off

The reduction is welcome for households, but it reflects falling costs in the renewable energy market, not a structural change to how the levy is collected.

How much is the PSO levy?

What is the current PSO levy amount?

  • Domestic customers: €1.46 per month (excl. VAT) — equivalent to €17.52 per year before VAT (Pinergy (electricity supplier)).
  • Small businesses: €5.65 per month (TheJournal.ie (Irish news outlet)).
  • Medium to large businesses: €0.70 per kVA of maximum import capacity (MIC) per month (Bonkers.ie (comparison site)).

How is the levy calculated for different customer types?

  • The levy is a fixed charge per month for domestic and small commercial accounts — it does not vary with electricity usage (Energy Efficiency (energy advice site)).
  • Larger business customers pay based on their maximum import capacity (MIC) in kVA, making their levy proportional to their potential demand (Bonkers.ie (comparison site)).
The upshot

A small business with the same energy usage as a large household pays nearly four times the levy — the structure penalises commercial premises even if they’re energy‑efficient.

What are the disadvantages of PSO?

How does the PSO levy affect high energy users?

  • The levy adds a fixed cost to every bill regardless of consumption — high‑usage households pay the same as low‑usage ones, so it’s regressive in nature (Energy Efficiency (energy advice site)).
  • Critics argue it disproportionately impacts low‑income households, for whom the flat charge represents a larger share of disposable income (Bonkers.ie (comparison site)).

Are there criticisms of the PSO levy structure?

  • The levy has been criticised for continuing to support older peat‑fired power stations, which are less environmentally benign than renewables (Energy Efficiency (energy advice site)).
  • Some consumer advocates note that the levy’s complexity makes it hard for households to understand what they’re paying for (TheJournal.ie (Irish news outlet)).
The catch

While the levy funds green energy, it also props up peat generation — meaning your charge partly supports a fuel that Ireland is trying to phase out.

How has the PSO levy changed over time?

What was the PSO levy in 2024/2025?

  • The domestic levy for 2024/2025 was approximately €1.96 per month, based on the €0.50 reduction to the new rate (TheJournal.ie (Irish news outlet)).
  • Small commercial customers paid around €7.77 per month in 2024/2025 (Pinergy (electricity supplier)).

What were the rates in 2023, 2022, 2021?

  • According to CRU historical data, the levy has been declining since 2021 — exact annual figures are published on the CRU (regulator website) but have not been summarised in recent news coverage.
  • Energy Efficiency notes that the levy trends downward as renewable generation costs fall (Energy Efficiency (energy advice site)).
Bottom line: The PSO levy has been on a steady downward path. For households, the cumulative reduction since 2021 now saves roughly €10–€15 per year compared to the peak. For small businesses, the savings are larger in absolute terms.

Timeline of key PSO levy changes

  • October 2025 — CRU announces the latest cut, reducing domestic levy from €2.01 to €1.46 per month (TheJournal.ie (Irish news outlet)).
  • 1 December 2025 — new rate takes effect for all customers.
  • 2021–2024 — rates decreased year on year (exact CRU figures available on CRU (regulator website)).

Confirmed facts vs what remains unclear

Confirmed facts

  • The PSO levy for domestic customers will be €1.46 per month from December 2025 (TheJournal.ie (Irish news outlet)).
  • The reduction amounts to approximately €0.50 per month (Pinergy (electricity supplier)).
  • The levy applies to all electricity customers in Ireland (Bonkers.ie (comparison site)).

What’s still unclear

  • Exact historical PSO levy rates for 2021–2023 — not aggregated in the main announcement (CRU data needed).
  • How the levy cut interacts with other electricity charges to affect total bills.
  • Whether the CRU will extend the levy period beyond September 2026 at the same low rate.

What experts are saying

“The levy reduction reflects lower costs in the renewable energy market.”

CRU spokesperson, as reported by TheJournal.ie (Irish news outlet)

“The levy has fallen even more than expected.”

Bonkers.ie editors, Bonkers.ie (comparison site)

Summary

The latest PSO levy cut puts €6 back in the average household’s pocket annually — modest, but part of a clear downward trend. For regulators, the challenge is balancing renewable support against fairness. For Irish consumers, the immediate takeaway is simple: your December bill will be a little lighter, but the levy’s role in funding green energy remains unchanged. The pattern is clear: as renewables become cheaper, the levy shrinks. For small businesses, the cut is more meaningful — nearly €26 saved per year — but the flat structure still means the levy hits them harder than larger commercial users.

From December 2025, the reduced PSO levy will lower household electricity costs to just €1.46 per month, making it easier to compare with aktuella elpriser i Irland.

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Frequently asked questions

Is the PSO levy applied to all electricity bills in Ireland?

Yes, the PSO levy is charged to every electricity customer in Ireland, including households and businesses, regardless of which supplier they use (Bonkers.ie).

Can businesses get an exemption from the PSO levy?

No general exemption exists for businesses. All commercial customers with an electricity connection must pay the levy, although the rate varies by connection size (Bonkers.ie).

How is the PSO levy calculated for small businesses?

Small commercial customers pay a fixed monthly charge of €5.65, regardless of actual energy usage (Pinergy).

Does the PSO levy include VAT?

The published rate of €1.46 excludes VAT. With 9% VAT applied, the monthly charge becomes €1.59 (Energy Efficiency).

Will the PSO levy be cut further in the future?

Future rates depend on renewable generation costs and CRU decisions. The trend since 2021 has been downward, but no commitments have been made beyond September 2026.

What is the difference between the PSO levy and other electricity charges?

The PSO levy is a fixed regulated charge that supports specific government programmes. Other charges on your bill include the standing charge (supplier cost) and unit rates (energy usage). The PSO does not change with consumption (Energy Efficiency).

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