Bills boost as PSO to be cut relief for consumers after charge slashed by €57

AN extra charge on household electricity bills is set to be slashed by more than half, the energy regulator revealed.

The Commission for Regulation of Utilities announced yesterday the Public Service Obligation fee will be cut by €57 a year –plunging from its current €105.

The decrease could represent savings of more than €80million across the country – and will come into effect on October 1.

However, it is only a quarter of the sum by which nationwide electricity prices have risen this year.

The country has seen substantial hikes by the main energy providers in the past few months, with costs soaring €200 a year.

Energy compare site

Switcher.ie spokesman Eoin Clarke said: “What all this means is the PSO levy decrease is not likely to even be noticed by hardpressed consumers by the time October comes around. “However, consumers can make significant, immediate savings on their energy bills just by switching. “Despite the hikes, the average electricity customer can still save up to €173 by moving from a standard tariff to the cheapest deal on the market and dual fuel customers can save more than double this. “It only takes five minutes, and added to the PSO levy decrease, will really help to take the sting out of winter energy bills.” The PSO is set by the Government and covers the cost of producing renewable energy. Mr Clarke added: “It is a standard charge all electricity customers have to pay, regardless of our electricity usage, so any decrease in this is welcome news.

“The problem is this €57 decrease in the levy follows a spate of energy price hikes, which are going to add up to €180 on to some customers’ bills, so it’s really just a drop in the ocean in terms of what’s going on in the wider market.

“Within just a few days from now eight price hikes will have taken effect, so energy bills are going to start shooting up soon.”