FAQs

How is my tariff made up?

How is my tariff made up?

Each domestic tariff is composed of three elements:

Standing Charge

The standing charge covers the upkeep of the network necessary to bring supply to your home, together with the cost of reading the meter, issuing and processing the bills, etc. These costs have to be met irrespective of the amount of electricity used.

Different standing charges apply to urban and rural customers.

A small additional standing charge applies where a second meter is installed for electric storage heating.

Public Service Obligation (PSO) Levy

The Public Service Obligation (PSO) levy relates to the purchase by ESB of the output of certain peat generated electricity, in the interests of security of supply, and the output of certain generating stations using renewable, sustainable or alternative forms of energy, in the interests of environmental protection, in accordance with a PSO order made by the Minister for Communications, Energy and Natural Resources.

The PSO levy appears as a separate line item on all customers bills.

From 1st October 2010 the PSO levy has been set to the following rates (Ex VAT):

Domestic Customers: €32.76/ annum or €2.73/month.

Small Commercial Customers (MIC less than 30 kVA (Kilovolt amperes = voltage x current (amperage)) €99.03/annum or €8.25/month.

Unit Charge

The unit charge relates to the amount of electricity you use. The amount of electricity used is recorded in "units" each of which is equivalent to 1,000 watts of electricity used for one hour, and is known as kilowatt-hour (kWh).

Under the ‘Standard’ tariff, a separate unit charge applies to Night Storage Heating.

How is the CER involved in tariffs?

Since 2001, the CER conducted an annual review of tariffs with the aim of ensuring that prices charged by ESB Customer Supply (now Electric Ireland) were cost reflective. From 1st April 2011, the CER will no longer regulate the incumbent suppliers domestic tariffs. The business markets were deregulated from 1st October 2010. 

The CER will continue to regulate and approve the tariffs associated with the transmission and distribution network service for all electricity customers.

Why am I paying VAT on my PSO Levy?

Applying VAT on electricity charges is outside the remit of the Commission. This tax is applied by the Revenue Commissioners in accordance with section 10 Part 1 of the 1972 V.A.T Act (as amended). For further information, you can call the VAT Interpretation Branch on +353 (0)1 6475000 or visit www.revenue.ie