ESB Public Service Obligation

D

dosfromclare

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Forgive me if this has been dealt with previously (searched but didn't find anything).

I wonder about the legality of applying VAT of 13.5% on a government imposed levy such as the public service obligations levy listed on my ESB bill...This is a tax on a tax surely ?

Thanks,
 
This is not unique. Excise duty is applied to booze and then vat is paid on the sum. forgive my ignorance but what is the public service obligation?
 
See here for:

Public Service Obligation (PSO) Levy

The Public Service Obligation (PSO) levy relates to the purchase by ESB of the output of certain peat generated electricity, in the interests of security of supply, and the output of certain generating stations using renewable, sustainable or alternative forms of energy, in the interests of environmental protection, in accordance with a PSO order made by the Minister for Public Enterprise. The cost of purchase by ESB of these sources of electricity was included in electricity bills issued by the Board prior to the introduction of the PSO levy and therefore, an appropriate adjustment has been made to separately identify the PSO levy, on a basis approved by the Commission for Energy Regulation".

 
Not related directly to the topic at hand but it came to my attention last week that, if you experience a cut in ESB supply without notification, you are entitled to Euro35.00 from the ESB.
Not entirely sure of the precise nature of the break in service in order to qualify for the rebate but good to know that there's some recompense in some circumstances.
 
They only pay out for planned maintenace outages that are not notified.

Their disclaimer covers acts of god, storm damage, force majeur etc, so no pay outs for winter storms.
 
For those interested, the PSO is intended to support "alternative" forms of energy, but the vast bulk of it goes to peat stations, which is not exactly new or alternative technology.

Another odd thing about the PSO is that it is applied to all users of electricity, including the stations that it is meant to support - i.e. there are plants out there that simultaneously pay the PSO levy, and get payments from the PSO levy.

The only good news is that it is reduced by 30-40% next year from 1-1-06.
 
Yeah, I love that. On the one hand they use part of it to meet their obligation to generate a proportion of their energy from peat, thus contributing to the destruction of Ireland's unique bogs, while on the other hand they're investing in 'alternative' forms of energy :mad:

Once again, politics in Ireland takes precedence over the environment.
 
Where did this idea that you can't Tax a Tax come from?
I've heard many people mention it as if it was enshrined in the constitution or somewhere similar.

It seems to happen, so what's the origins of it?

-Rd
 
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