Dáil Éireann Debate, Wednesday - 13 May 2026
11. Deputy Cian O'Callaghan asked the Minister for Climate, Energy and the Environment to provide an update on progress on the 2025 Programme for Government commitment to 'explore funding models of the Renewable Electricity Support Scheme and the Public Service Obligation (PSO) levy which would reduce electricity bills for households and businesses'; and if he will make a statement on the matter. [35438/26]
Amharc ar fhreagraResponsibility for the Public Service Obligation (PSO) is a matter for the Commission for Regulation of Utilities (CRU) which is an independent regulator, accountable to a Committee of the Oireachtas. Deputies can contact the CRU directly via email at oireachtas@cru.ie.
The PSO is a vital policy support for the development of renewable electricity to enable Ireland to reach energy and climate targets. The PSO protects consumers by supporting investments in renewable energy at predictable prices and reducing reliance on importing fossil fuels. It helps shield consumers from international price volatility.
The Renewable Electricity Support Scheme (RESS) has been instrumental in providing a supportive policy environment for Ireland’s growing renewables sector since 2020. The scheme aligns closely with the work of the National Energy Affordability Taskforce through the range of consumer protection measures included in the auction design, including the two-way nature of the contract. This means that when market price is above the agreed strike price, the generator must pay back the difference to the PSO, which reduces the cost to consumers.
In this period of higher market prices, the projects contracted under RESS will be returning more savings for consumers through the PSO. The PSO is set annually by the CRU and applies to all electricity customers and can be a charge or a credit depending on wholesale prices. For 2025/26 the CRU has set the monthly PSO charge at €1.46 for domestic customers. In contrast, the PSO was negative in 2022/23, resulting in payments to customers, and set to zero for 2023/24.
Any consideration of changes to the PSO would need to deliver reductions in electricity bills for households and businesses, and ensure that there continues to be a stable investment framework for wind and solar renewable electricity projects so that that Ireland benefits in the long term from its indigenous renewable resources.
