"Energy usage during the restrictions has increased as people are at home more, and many households will experience bill shocks at a time when they are on a reduced income. This must be factored into decisions regarding the application of the PSO levy in 2020/2021, as the proposed increase will add additional pressure to already struggling households,” said Kieran Stafford, National President, SVP.
Data from Eurostat show that among EU peer countries Ireland has the second highest rate of households who cannot afford to adequately heat their home and the highest percentage of utility arrears.
Proposed 36% increase in the Public Service Obligation Levy (PSO) will wipe out almost 50% of recent savings for electricity customers.
“With VAT added, domestic customers are effectively paying a tax on a tax. In the interest of social justice and fairness, we urge a review of the PSO application for low income and struggling energy customers.”