Dáil Éireann Debate, Wednesday - 28 June 2023
63. Deputy John Paul Phelan asked the Minister for Enterprise, Trade and Employment if the Government has created a winter plan to assist businesses with high energy costs; and if he will make a statement on the matter. [31573/23]
View answerMy Department and Government are very conscious of the pressures that cost inflation is placing on both families and businesses. We are keenly aware that energy is a big driver of costs across the economy, and particularly over the Winter months, and that energy price rises around this time last year have had an impact on almost every business in the state.
I and Government have been clear that there will be no cliff-edge on the measures to help people with fuels and energy costs. We are monitoring wholesale and retail energy prices closely and will continue to keep under review the tools available to Government to help businesses be resilient to these risks. Because the Government continues to manage the public finances responsibly, we have scope to take the short-term actions necessary, such as the Temporary Business Energy Support Scheme, while ensuring we have sufficient resources for the next Budget in the autumn.
The Deputy will be aware of the recent reductions in wholesale gas and electricity prices, and Government expects to see this reflected in bills for households and businesses. Retail energy prices are influenced by a number of factors, such as wholesale energy prices and supplier hedging. In Ireland, our location (as an isolated island), our low-density and widely dispersed population, and our reliance on fossil fuel, are also key factors. The retail electricity and gas markets operate on the basis of competition between suppliers. Consumers can and should switch their supplier to ensure optimal energy costs.
Government is committed to helping businesses be resilient to energy price volatility, and to be more sustainable and competitive while doing so. I encourage SMEs in particular to get an energy audit through SEAI. For small and micro-businesses there are grants of up to €5,000 for energy efficiency measures now available through Local Enterprise Offices. The Non-Domestic Microgeneration Scheme provides up to €2,400 towards the installation of solar PV for your business, though SEAI, which can substantially reduce your ongoing electricity costs. I am working with colleagues across Government to assess how to further support businesses be resilient, more energy efficient, and ultimately decarbonise their energy use.
Businesses should use the summer months to think strategically about their energy use, and make changes that will strengthen resilience and competitiveness through the winter months. Monitoring your energy use is a good start, check the efficiency of your heating system, address any weak points in your building fabric to ensure that you are using the energy you use is retained and as efficient as possible. If you have a smart meter, use it to better understand your electricity use.
Small investments can make a big difference to your bills, for example, could your businesses benefit from using an electric boiler to heat hot water during the night during cheaper electricity prices? Could you adjust the times that your heating system or immersion switches on and off? Can you turn off appliances not used regularly? Is your businesses in a position to invest in solar panels to reduce your cost per unit of electricity?
Finally, the Temporary Business Energy Support Scheme has been extended to 31st July, 2023 with an extension of the time limit for all claims to 30 September, 2023. Following consultations during the year the qualifications for the scheme were enhanced. Qualifying businesses can claim 40% of increases in their September 2022 to February 2023 energy bills and 50% of the increase in their March to July 2023 energy bills.
The war in Ukraine is ongoing; international energy markets have stabilised, but uncertainty and the potential for volatility remain. I will be monitoring the situation closely as we move into the coming Winter. The best measure Government and businesses can take immediately, is to assess and invest in reducing our exposure to this external risk, fast-tracking energy efficiency and decarbonisation opportunities.
