Sinn Féin MEP for Dublin, Lynn Boylan has said the recent hike in the electricity PSO levy is hitting workers and families hard, while large data centres benefit from a disproportionately low share of the costs.
The government’s decision to allow the increase of this levy by €40 a year is adding to the financial strain on ordinary people, particularly at a time when bills are well above the pre-energy crisis average.
MEP Boylan said:
“In the same week we learned that 20,420 more households have fallen into debt to electricity companies compared to last year, the government has imposed an additional financial burden on them.
“This increase will inevitably lead to more families struggling to pay their bills and facing the risk of disconnection.
“The PSO levy, as it stands, is deeply regressive. It charges all electricity customers, but disproportionately affects households.
“This is because the levy is based on peak demand rather than total demand. For instance, in the last year, domestic users accounted for 39.7% of peak demand, yet only about 28% of total demand.
“The government could address this imbalance by simply changing the legislation to apportion the levy based on total demand, ensuring that data centres pay their fair share.
“However, the current political choices indicate a preference for protecting large energy users over ordinary families.
“The public should know a Sinn Féin government has solutions and would act in the interest of all and reform the PSO levy to create a fairer system to end the subsidisation of data centres by ordinary households.”