Household and business electricity bills will ease marginally from October when the Commission for Energy Regulation (CER) cuts its public service charge by €10 million.

The move means the charge imposed on each household in the State will fall by 35 cent a month to €5.01, a saving of 70 cent on bi-monthly bills. The cost over 12 months will be €60.09, below its current level of €64.37.

Wind power

The regulator plans to cut the public service obligation levied on all electricity users in the State to support wind power, peat-fired plants and a number of other generators by €10 million to €325 million over 12 months from next October.

The minimal cut in the charge is likely to reignite the row over the Republic’s high energy costs and the logic behind imposing the levy on consumers and businesses in the first place. Small business will also see a slight reduction in their charge, down to €214.50 a year from €221.66.

The cash collected from consumers and businesses bridges the gap between the wholesale market price of electricity and prices guaranteed to a number of generators, to which it is distributed.

Companies generating electricity from so-called “green” sources, the bulk of which are wind farm operators, will be the biggest beneficiaries, sharing almost €181 million of the total collected.

Two ESB-owned peat-burning generating plants will also receive handouts. Lough Ree will get €45 million and West Offaly €50.6 million.

The GE-backed Tynagh Energy will receive €41.4 million under a security of supply contract agreed in 2006. This deal will end in March.