Dáil Éireann Debate, Tuesday - 25 April 2023
239. Deputy Louise O'Reilly asked the Minister for Enterprise, Trade and Employment the status of the scheme under design aimed at providing support to businesses with increases in their LPG and kerosene oil costs; when the scheme will go live; and what industry experts were consulted in the design of the scheme. [19200/23]
View answerThe Temporary Business Energy Support Scheme (TBESS) was introduced to provide financial support to companies that have experienced significant increases in energy costs. The scheme was designed by the Department of Finance and is being administered by the Revenue Commissioners, with funding coming from my Department.
Government was concerned at the low uptake of the scheme and want more companies to be eligible to apply for support. A number of enhancements to the scheme were brought forward in the Finance Bill 2023 as part of the new cost-of-living measures announced in February.
From 1st March, the monthly limit on aid under the scheme was increased to €15,000 per qualifying business, subject to an overall cap of €45,000 in cases where a business is carried on from more than one location. Last week, European Commission approval under the State Aid Temporary Crisis and Transition Framework was received for further enhancements to the scheme. These include:
• Extending the scheme to 31 May 2023, with the option to further extend the scheme by Ministerial Order to not later than 31 July 2023;
• Reducing, with effect from 1 September 2022, the energy cost threshold for qualification for the scheme from a 50% increase in electricity or gas costs to a 30% increase;
• Increasing, from 1 March 2023, the level of relief from 40% to 50% of eligible costs.
The time limit for making claims under the scheme has also been extended.
My Department also committed to examining the possibility of creating a separate grant scheme for business users of LPG and kerosene (which are not eligible fuels under TBESS) within the same parameters as TBESS, on the basis that the cost of these fuels increased sufficiently in the same reference period. Work is ongoing in relation to this.
It is important to remember that businesses that use kerosene and LPG are entitled to claim for increased metered electricity costs through the TBESS. It is estimated that, as of the end of March, approximately 90% of payments made under TBESS were for metered electricity with only 10% of payments being for metered gas.
The government provides a wide range of energy and climate action supports for businesses and details of these are available on my Department's website at the following address: www.enterprise.gov.ie/en/what-we-do/supports-for-smes/energy-supports/
