Sounds to me like you have either an earth loop or a screen down. Have you changed anything in your setup recently, including moving stuff around?? Has your household bought any new applicances recently? The PSU fault although possible seems unlikely to me. IMO the distance between the PSU and the encoder is sufficent to rule this out. By distance I don't mean cm/inches, I mean population of mobo and trace routing via caps etc. The encoder is too far downstream for video noise to effect it. If the encoder was fed by it's own supply rail then I would agree with your suggestion.
I would move your box away from everything else and try again. Tap the cable and the rear of the box gently and note any clicks or pops on the display.
If you are using an AV amp as a switcher, then disconnect the other feeds the display and try again. If you have an earthed power amp, connected to the processor by cable screened at both ends, pull the mains from the power amp and try again.
Post back your findings.