Seamus Kirk TD
Fianna Fáil TD for Louth Seamus Kirk says the latest increase in the PSO levy will put additional financial pressure on families across Louth.
Earlier this week, the Commission for Energy Regulation confirmed that it had approved a 50% increase in the tax, which will see the average household bill increase from €42.87 per customer to €64.
Deputy Kirk commented: “This latest price hike is certain to make it more difficult for many families across Louth to keep on top of their already high bills. The PSO charge, which subsidises the renewable energy sector, was already increased last year, and now the CER has decided to raise it again. The latest increase sees the charge tripling within a three year period, which is a completely unsustainable and unfair situation for householders to find themselves in.
“It is completely unacceptable that the Regulator would approve another increase in light of the disproportionately high energy prices Irish households and businesses are charged. Gas and electricity prices here are among the highest in Europe and are rising at a much faster rate than the EU average. Irish customers have been subjected to sustained price increases over the past three years, all of them approved by the CER.
“The role of the CER is to protect the consumer, but there is little evidence of this in the consecutive gas and electricity price increases that have been slapped on energy customers in recent years. Earlier this year, the regulator in the UK wrote to power companies in Britain asking them why wholesale gas and electricity price reductions were not being passed on the consumer. The regulator here should be asking similar questions, and outlining why he continues to approve increases.
“The proposed increase in the PSO levy will add €21.50 a year to an average household bill. This comes on top of the €300 hike in energy bills that has accumulated over the past three years. Families in Louth are already being squeezed by these extortionate price rises and it is becoming increasingly difficult for them to stay on top of their bills. Consumers should not have to pay over the odds for gas and electricity at a time when semi state energy providers are turning huge profits. In 2013, the ESB reported a profit after tax of €415m, a 23% increase on the previous year.
“It’s completely unfair to expect families across this county to subsidise profitable energy companies. Once again we see ordinary people pushed to the limit with another tax increase. Energy Minister Alex White needs to step up where his predecessor failed and address this important issue before the levy is increased in October.”
