Irish producers warn over green energy levy

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Ireland: A proposed Euro100m rise in Ireland’s green energy levy threatens the recovery in construction, according to building materials suppliers. The Commission for Energy Regulation (CER) wants to increase the Public Service Obligation (PSO) levy on electricity bills by Euro104m to Euro496.5m from October 2018 to support renewable energy developers and peat-fired power plants.

However, cement and concrete manufacturers, whose businesses face high-energy bills, have warned the regulator that such a move could hit jobs and endanger the recovery in construction. In a submission to the commission, manufacturer Kilsaran International said that, "Irish electricity prices are among the highest in Europe and the yearly increases in the PSO levy only serve to undermine the cost base and competitiveness of Irish companies, thereby limiting the potential for growth and job creation.”

Many other companies in the industry submitted versions of the same letter to CER analyst Gráinne Black, pointing at the likely cost of the increase to their businesses and its implications for job creation.

According to the CER large energy users, which include cement and concrete producers, will pay Euro234.2m of the Euro496.5m total. The charge guarantees the price paid for electricity to wind farms, other renewable energy producers and peat-fired plants. It is meant to implement government policy to support green electricity generation.

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