Dáil Éireann Debate, Tuesday - 18 April 2023
369. Deputy Éamon Ó Cuív asked the Minister for Finance what support is available to new businesses that commenced business in the past 12 to 24 months under the business energy support scheme and that are facing very high energy bills; if there is no support, whether he intends amending the scheme to support these businesses; and if he will make a statement on the matter. [16390/23]
View answerThe Temporary Business Energy Support Scheme (TBESS) was introduced in Finance Act 2022 to support qualifying businesses with increases in their electricity or natural gas costs arising from the invasion of Ukraine by Russia.
The scheme provides support to qualifying businesses in respect of energy costs relating to the period from 1 September 2022 to 30 April 2023. However, subject to State aid approval and enactment of changes proposed in Finance Bill 2023, this period is to be extended to cover energy costs up to 31 May 2023. It is available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria.
The scheme is designed around determining increases in unit prices and actual consumption for each month falling within the period of the scheme as compared to the same month in the previous year based on information made available through electricity and gas meters.
New businesses are eligible to make a claim under the scheme notwithstanding that they do not have a corresponding electricity or natural gas bill for month 12 months prior to the month of claim. Such businesses eligibility for the TBESS is determined based on a deemed reference electricity or gas unit price. This deemed monthly reference unit price is the price that has been made available by the Sustainable Energy Authority of Ireland (SEAI) and used in the energy costs threshold and eligible costs calculations.
The deemed reference unit prices are based on data provided to the SEAI by energy suppliers and the Commission for Regulation of Utilities. If the unit price on a relevant electricity or natural gas bill is at least 50% higher (or 30% subject to State aid approval and enactment of the changes in Finance Bill 2023) than the deemed reference unit price for the corresponding period in the 12 months prior, the business will pass the threshold for support under the scheme. In these circumstances, the eligible cost amount will be calculated by reference to the difference between the actual and deemed unit prices and will be based on consumption levels in the current bill.
All qualifying businesses, including new qualifying businesses, wishing to claim support under the TBESS are required to register for and make a claim using the Revenue Online Service (ROS). Where the eligible business does not have a reference electricity bill or reference gas bill for the reference period, because the business had not commenced at that time or because the relevant electricity account or gas connection was not held by the business at the time, a deemed reference unit price must be used in the energy costs threshold and eligible costs calculations.
The deemed reference unit price will be applied on behalf of the business on ROS for the purposes of the energy costs threshold and also, where the energy costs threshold is passed, for determining the quantum of eligible costs in relation to a relevant electricity or gas bill.
At registration, applicants for the TBESS are asked if the electricity account or gas connection has been held by the business since September 2021. If the answer is ‘No’, the business is then requested to provide the date of connection. This indicates, to ROS, what reference periods will require a deemed reference unit price. The business is then requested to input an item of information regarding their category of consumption because the applicable deemed reference unit price will depend on that category. In the case of an electricity account, it is the Distribution Use of System (DUoS) Group. The ‘DG’ number, which is on every electricity bill, indicates the DUoS profile. In the case of a gas account, it is the ‘AC band’.
Most gas bills have an AC band listed but in the event that the AC band is not listed on the bill, customers can contact their suppliers for that information. The DG number and AC band are usually indicated clearly on the energy bill. Revenue has published an ‘Understanding Your Bill’ Guide on its website that applicants can consult for assistance with identifying this information.
Revenue has also published comprehensive guidelines on the operation of the scheme, which includes information on eligibility for the scheme and how claims may be made. The guidelines are available on the Revenue website at: www.revenue.ie/en/starting-a-business/documents/tbess-guidelines.pdf . Deemed reference unit prices for electricity and gas, which have been made available by the SEAI, are contained in Appendix III of the guidelines.
