Dáil Éireann Debate, Thursday - 10 November 2022
200. Deputy Brendan Griffin asked the Minister for Finance the way the temporary business energy support scheme will apply to farmers in County Kerry and elsewhere; and if he will make a statement on the matter. [53116/22]
View answer201. Deputy Brendan Griffin asked the Minister for Finance if farmers can avail of both the temporary business energy support scheme and the €600 electricity credit; and if he will make a statement on the matter. [53117/22]
View answerI propose to take Questions Nos. 200 and 201 together.
Farmers will be eligible for payments under the TBESS in the same way as any other business that is carrying on a trade which is taxable under Case I of Schedule D where they meet all eligibility criteria. A person engaged in a trade of farming who has suffered an increase of at least 50% in the average unit price of electricity and/or natural gas for the relevant billing period in 2022 or 2023 as the case may be, as compared with the average unit price for electricity and/or gas for the corresponding reference period in the previous year, will be eligible under the scheme.
Payments will be made on the basis of 40% of the amount of the increase in eligible electricity or natural gas costs between the bill amount which is the subject of the claim and the bill amount in the corresponding reference period in the previous year. Payments are generally subject to a monthly cap of €10,000 per trade, increasing to a maximum of €30,000 in certain circumstances.
In line with the EU Temporary Crisis Framework, there is also an overall cap on the amount that an undertaking can claim. The cap that currently applies in relation to farmers in the Framework is €250,000 and a Committee Stage amendment to the Finance Bill will reflect this.
If any amount charged on an energy bill for a claim period is not expended wholly and exclusively for the purpose of the farming trade, then this amount must be deducted from the relevant energy bill amount for the claim period for the purpose of calculating the eligible cost. This could be the case where, for example, a single electricity connection supplies both the farm and a domestic dwelling.
An enhanced electricity credit of €600 was announced in Budget 2023 to be applied to electricity bills, €200 before Christmas and the remainder (in two tranches) early in the New Year. This will benefit all Irish households including farmers with a domestic connection.
