2023 PSO Levy Refund for PrepayPower Customers
Find out how your PSO Levy refund works.
How will I receive my PSO Levy refund from PrepayPower?
PrepayPower electricity customers will receive the PSO Levy refund as a reduction in their daily standing charge between March 1st and September 30th, 2023.
The refund is also called the PSO payment. It totals €89.10 and is equivalent to €0.42 per day across seven months.
What is the PSO Levy for Ireland?
The Public Service Obligation (PSO) Levy is a subsidy charged by the Government to all electricity customers in Ireland to support its renewable energy projects and objectives.
The Commission for Regulation of Utilities (CRU) calculates and sets the PSO Levy rate every year.
The annual cost of the PSO Levy to households has varied since its introduction in 2010. However, in response to the energy crisis, it was reduced to €0.00 in October 2022.
Reasons for the PSO Levy refund
The goals of the PSO Levy are as follows:
Promote and integrate the renewable energy sector.
Protect it from sudden or unexpected market volatility.
Guarantee renewable energy producers a minimum price for their electricity.
But the energy crisis caused a prolonged increase in wholesale gas prices. This, in turn, caused a prolonged increase in wholesale electricity prices. Because gas is used to generate electricity.
As a result, renewable energy producers - due to the minimum price guarantee - also received higher rates for their electricity. So they no longer required support from the PSO Levy.
The CRU announced a portion of the excess revenues will be refunded to electricity customers via the PSO payment. In July, the CRU will determine whether to restore the PSO Levy or issue another PSO payment.