Responsibility 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 and not to me, as Minister. Deputies can contact the CRU directly using the oireachtas@cru.ie email.
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 wholesale electricity 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. As part of the 2025/26 decision, it is estimated that €11.1m will be returned to Irish electricity consumers by operational RESS projects. In contrast, the PSO was negative in 2022/23, resulting in payments to customers, and set to zero for 2023/24.
The PSO for 2026/27 is likely to be very low or may be set to zero. This is subject to confirmation from CRU in the Final PSO Decision Paper which will be published at the end of July.
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 so that Ireland benefits in the long term of its indigenous renewable resources.
The Government recognises and understands the real financial pressures that many across the country are facing because of the global rise in fuel and energy costs. The Government is taking action to help households and businesses with the cost of fuel and energy, introducing an additional package of measures that include measures on fuel costs and to support the transport, farming and fisheries sectors.
This €750 million package was announced following significant recent engagement with industry representatives.
The practical measures introduced by Government on 12 April include:
• a reduction in excise on diesel to 32c, and on petrol to 27c (incl. VAT).
• a reduction in excise on marked gas oil (green diesel) by a further 2.4c to 7.4c (incl. VAT).
• a deferral of the planned increase in carbon tax — scheduled for 1 May — until the Budget.
• the reductions in excise include the NORA levy reduction (announced in March), and will take effect from midnight on 14 April and run until 31 July 2026.
It is important to note that price setting is a commercial and operational matter for each energy supplier. Retail prices are influenced by several factors, including wholesale energy prices, system operation costs and supplier hedging.
I have engaged with the four biggest energy retailers in recent months to ensure that hardship funds and focused measures are in place for any customers who find themselves in difficulty.
I have also recently written to retail electricity and gas suppliers, as well as fuel suppliers, to emphasise the importance of reducing the exposure for Irish consumers from the price shocks that global uncertainty can create.
Last June, Government established the NEAT, a cross-Government National Energy Affordability Taskforce, to identify and implement measures to enhance energy affordability for households and businesses. The first report of the Taskforce was published in November 2025. This report analysed recent trends in energy costs and related matters and set out a range of options for consideration as part of the Budget 2026 process. The Taskforce is now working to develop an Energy Affordability Action Plan to be published in Q3 this year.