Householders can expect to pay an extra €20 on their electricity bills from October this year.

The Commission for Energy Regulation has announced the Public Service Obligation Levy is going up by just over 30%.

The PSO Levy is a government subsidy that is charged to all electricity customers in Ireland.

The new changes mean that the new total levy will be just over €92.

The money collected from the PSO Levy is used to contribute renewable energy generation and peat burning power plants as well as to secure the Irish electricity supply.

Eoin Clarke, Managing Director of Switcher.ie, said the levy is unwelcome news for anyone already struggling to pay their energy bills.

He said households will have to pay around €105 each year, including VAT, on top of their energy bill.

“The average energy bill now sits at around €947 per year,” said Mr Clarke.