Irish households will save €127 on electricity bills thanks to new legislation

Irish households will see €127 saved on their electricity bills by the end of this year after the Government passed new legislation yesterday.

As the cost of living continues to skyrocket, the Government has taken some steps to ease some of the financial pressure on the public.

The Government had previously announced that the Public Services Regulatory Commission (CRU) would zero out the Public Service Obligation (PSO) tax on bills, saving each household €52 (excluding VAT) a year on their bills. .

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However, the PSO rate has actually been changed to a negative rate, with the proposed PSO rate falling from €263m for 2021/2022 to an estimated minus €408m for next year.

This will give rise to a rebate on household bills equivalent to an ‘indicative’ annual saving of €75, excluding VAT.

Combined with the saving of €52, this will give you a total saving of €127, excluding VAT, f for the period October 2022 to September 2023.

The CRU will issue a final decision on the exact PSO tax for 2022/2023 at the end of next month.

The PSO tax is charged to all electricity customers in Ireland and supports the generation of electricity from sustainable, renewable and indigenous sources.

The Cabinet also signed the purchase of 450 megawatts of additional emergency capacity for the electricity grid, at a cost of 350 million euros.

Earlier this year, a credit of €200 was applied to the electricity bills of Irish households, as some customers were surprised to find that their bills had risen by around 28%.

Gas bills have also doubled since last year, and home heating oil is 90% more expensive than a year ago.

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