The Public Service Obligation (PSO) levy has been in place since 2001. It is the overall support mechanism for peat generation, for certain conventional generation constructed for security of supply purposes, and for the development of renewable electricity. The levy compensates electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers.
This levy is vital to enable Ireland meet its 40% target for electricity generated from renewable sources by 2020. This is important for the achievement of Ireland's 16% EU 2020 target for renewable energy.
The Commission for Regulation of Utilities (CRU) determines the PSO levy which is a charge on all electricity customers without exception. Regulations made under the Electricity Regulation Act 1999 provide the legal basis for the levy. The levy applies to all electricity customers and is reviewed annually. Further details on the PSO can be found on the CRU website.