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PSO levy 2026/27: the cut is real, but capacity now sets the bill

Climeaction
Newsroom
1 October 2026
3 min read
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Energy audits
Match import capacity to real demand
Our energy audits compare contracted capacity with metered load, then size heat pumps and heat recovery from the same data.
The big picture
The levy falls by three quarters. The grid charges underneath it rise.
From 1 October 2026, medium and large commercial sites pay €0.24 per kVA a month in PSO levy, down from €0.96.

The PSO levy 2026/27 applies to Irish electricity bills from today. The Commission for Regulation of Utilities (CRU) approved it on 29 July 2026. For sites with a Maximum Import Capacity (MIC) of 30 kilovolt-amperes (kVA) or more, the Public Service Obligation (PSO) charge per kVA falls by 75%. CRU puts the overall reduction at 66% across customer categories.

The same decision lets the grid recover more money. Both charges are tied to the capacity a site has contracted. That makes import capacity the number to check this winter.

The PSO levy 2026/27 cuts the per-kVA charge by 75%

The PSO levy funds supported electricity generation, including projects under the Renewable Electricity Support Scheme (RESS). CRU resets it each year. The total levy for 2026/27 is €41.9 million.

For medium and large commercial customers, CRU charges the levy per kVA of MIC each month. The rate was €0.96 in 2025/26, set on 31 July 2025. It is €0.24 from 1 October 2026. Small commercial sites, below 30 kVA, move from €7.77 to €1.93 a month.

A 1,000 kVA site saves €8,640 this year

The method uses the published CRU rates and a site with 1,000 kVA of MIC.

  • 2025/26: €0.96 x 1,000 kVA x 12 months = €11,520
  • 2026/27: €0.24 x 1,000 kVA x 12 months = €2,880
  • Saving: €8,640 a year, a 75% reduction

Scale it to your own MIC. A 2,500 kVA dairy or pharmaceutical site saves 2.5 times that figure. A small commercial site saves about €70 a year. VAT treatment follows your supply contract.

A site paying for capacity it never uses pays twice: once in levy, once in network charges.
Import capacity

Network charges rise as the grid expands

CRU approved distribution revenue of €1,582.51 million and transmission revenue of €1,502.44 million for 2026/27. In 2027 prices, those are 18.4% and 8.1% above 2026 allowances. CRU says the money funds upgrades, maintenance and reinforcement, including capacity for new businesses, heating and renewable generation.

A typical household pays about €41.25 more over the year. CRU has not published an equivalent figure for business. Each site needs to read its own Distribution Use of System (DUoS) tariff, where capacity is also charged per kVA.

Import capacity you never use is a cost you can remove

MIC is the capacity agreed with ESB Networks. Many sites set it years ago and never revisit it. A site paying for capacity it never uses pays twice: once in levy, once in network charges.

An energy audit compares MIC with measured peak demand from half-hourly interval data. Where the gap is wide, a site may apply to reduce it. Where a process change is planned, the same data shows how much headroom already exists.

Size electrification on measured load, not nameplate

Heat pumps and electric boilers add import capacity. With the per-kVA levy now low, the capacity decision turns on network charges and connection cost. Sizing heat pumps and heat recovery from metered load, rather than equipment nameplate, typically keeps MIC lower.

That is where our engineering design work starts, including for food, dairy and beverage processors. Talk to us before your next capacity application.

Key insight
The levy cut is automatic. The capacity bill is a choice.

The PSO saving lands on every commercial bill from 1 October 2026 without any action. The larger, recurring gain comes from matching import capacity to measured demand before grid charges and electrification push it up.

Written by
Climeaction
Newsroom
Climeaction is a B Corp certified sustainability consultancy working across Ireland and the United States. We combine engineering and data to help businesses reduce carbon, save energy and increase profits.
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