Electricity customers will get a small refund on their bills, following a decision by the Commission for Regulation of Utilities to decrease the Public Service Obligation (PSO) levy.
The PSO is paid by all electricity customers in Ireland and is used to support the renewable energy sector.
When wholesale energy prices are low, more money is usually needed to subsidise PSO supported schemes because they make less money on the open market.
The CRU said due to "unprecedented" and "sustained" levels of wholesale electricity prices, the PSO levy for the upcoming PSO Year 2022/23 is minus €491.25 million.
This represents a decrease of €754.95 million from the 2021/22 PSO levy funding requirement of €263.7 million.
The changes will mean domestic customers will get an annual payment of €89.10, while same commercial customers will get a payment of €311.51.
Customers in the medium and large commercial category will be subject to reimbursement of €37.82/kVA.
A spokesperson for the CRU said the payment will be made in this PSO period, which starts in October 2022 and runs to the end of September 2023.
The CRU said a decision has not yet been made on how customers will receive the payment.
"The detail of this payment is being finalised and will be communicated as soon as the decision is made," the spokesperson said.
Compared to 2021/22, the CRU said this calculation represents an annual saving of €140.76 for domestic customers and €475.05 for small commercial customers, and indicates an annual saving of €57.43/kVa for medium or large commercial customers.
"The decrease in the PSO Levy is a positive, however, its inverse relationship with wholesale fuel costs means that customers will have already seen price increases by suppliers over the last number of months," said Aoife MacEvilly, CRU Chairperson.
"We would encourage customers to renegotiate with their supplier or switch to a new provider where they could save over €300."
