Dáil Éireann Debate, Thursday - 23 November 2023
152. Deputy Louise O'Reilly asked the Minister for Finance his views on the successes and/or failures of the temporary business energy support scheme; the amount of funding issued under the scheme; the current underspend under the scheme; and if there is any possibility the underspend can be used to support businesses with rising energy costs, instead of reverting to the Exchequer, given nearly a third of businesses that use gas are in arrears. [51436/23]
View answerThe Temporary Business Energy Support Scheme (TBESS) was designed as a temporary measure. Its aim was to mitigate the expected impact of elevated energy costs over the winter months of 2022-23, arising from the illegal invasion of Ukraine by Russia, by assisting businesses with their energy bills during that time of uncertainty.
When TBESS was originally devised, it was expected that energy costs would increase significantly over the winter months - with the €1.2 billion cost, which was estimated by the Department of the Environment, Climate and Communications, being based on what was the expected upper end or ‘worst case scenario’ of wholesale energy price rises and consumption over the winter period.
While energy costs did rise before subsequently falling, ‘the worst case scenario’ in terms of energy pricing did not happen due to a number of factors such as a milder than expected winter which reduced demand as well as mitigation measures which were put in place across Europe such as increased storage capacity for natural gas.
As noted in the assessments of the scheme completed by my Department, there has been a significant stabilisation in energy prices in 2023. The decline in wholesale energy prices took time to filter through to business customers and TBESS was enhanced and extended to give businesses an opportunity to avail of the scheme. 25,132 businesses across the country benefited from the scheme with over €150.5 million having been paid out to them. The scheme is now closed.
In May, the Government agreed that unspent money from the TBESS could be used to support businesses who used Kerosene during 2022. In September, the Minister for Enterprise, Trade and Employment launched the Business Users Support Scheme for Kerosene (BUSSK). The scheme provided eligible businesses with a payment to reimburse them for half of their increased costs in the period from 1st March to 31st December 2022, compared to the equivalent period in 2021.
The Business Users Support Scheme for Kerosene closed to applications on the 31st October this year and applications are still being worked on for approval. Final approvals will be known in early December.
In July of this year the Minister for Environment, Climate and Communications and the Minister for Enterprise, Trade and Employment announced changes to the Non-Domestic Microgeneration Scheme, operated by the Sustainable Energy Authority of Ireland (SEAI), which extended the support offered to businesses and non-domestic applicants through a tiered grant support for solar PV, for installations greater than 6kWp up to 1,000kWp (1 MW) capacity.
Funds for the improved scheme have been diverted from the TBESS. The improved scheme complements the objectives of the TBESS, as it provides a solution to manage the impact of high energy prices and it empowers businesses to reduce their own emissions and support the local electricity grid.
Since 13th July this year the SEAI has received a total of 621 applications and offered a total of €10.8m in grant offers with a potential total of 54.6 MW in total generation capacity installed (averaging at 88kWp per grantee).
The Increased Cost of Business Grant (ICOB) was announced as part of Budget 2024 and will be targeted at small and medium sized businesses who operate from a rateable premises. The grant is intended to aid firms but is not intended to directly compensate for all increases in costs for every business. The total allocation for this scheme is €250 million. The scheme is currently being developed by the Department of Enterprise, Trade and Employment.
