State subsidy to Tynagh Energy to be increased

Galway Bay fm newsroom – A Galway-based energy company is set to get an 8 per cent increase in its State subsidy.
Tynagh Energy will receive more than 66 million euro over the 12 months from October because of the plan to increase the public service obligation levied on all electricity users.
According to today’s Irish Times, shareholders in Tynagh Energy include U.S giant General Electric and Turkish group, Gama.
The Commission for Energy Regulation plans to increase the PSO levy to support wind power, peat-fired and a number of other generators.
Latest accounts for Tynagh Energy show that it made profits of 25 million euro in 2011 and 2012.
The State subsidy compensates Tynagh because it receives less revenue from selling electricity on the open market, as a result of competition from cheaper rivals.
The increase will mean consumers will pay 5 euro 36 cent extra a month from October, an increase of 54 percent.