Irish households will see electricity bills decrease from December 1 following a reduction in the Public Service Obligation (PSO) levy, bringing relief to consumers facing high energy costs.
The Commission for the Regulation of Utilities (CRU) has announced the PSO for household customers will be reduced to €1.46 per month, down from the current €2.01. For small commercial users, the levy will drop to €5.65 from €7.77. The reduced rate will remain in place until September 30, 2026.
The PSO levy is used to fund renewable energy projects across the country. However, authorities decided to reduce the charge after wholesale electricity prices rose, resulting in these projects receiving more funding than required.
The tax reduction comes as welcome news for consumers, particularly as many electricity providers have recently increased their rates. The timing of the reduction will benefit households heading into the winter months when energy consumption typically rises.
However, the savings may offer only modest relief given the broader context of energy costs. Annual electricity bills, which stood at €1,200 in 2021, are expected to reach €1,900 by the end of this year. Electricity prices have increased 69% since 2021, while gas prices have more than doubled.
The PSO reduction follows criticism of the government’s decision to eliminate one-off energy credits in Budget 2026, which opposition parties described as inadequate support for households struggling with the cost of living.
The CRU said the lower PSO reflects improved market conditions and the financial performance of supported renewable energy projects.