Dáil Éireann Debate, Wednesday - 13 December 2023
86. Deputy Colm Burke asked the Minister for Enterprise, Trade and Employment if his Department would consider supporting energy intensive industries in quarter 1 2024 using the crisis provisions of the Temporary Crisis and Transition Framework, despite the joint letter signed by the Minister asking that said provision not be extended beyond 31 December 2023. [55466/23]
View answerIreland has always been a strong supporter of robust State Aid control at EU level to protect a level playing field for Irish businesses to compete in the EU. In order to maintain a level playing field, any flexibility in State Aid rules must be limited to what is strictly necessary and be provided in a way that benefits all Member States equally. It is important that we avoid a damaging subsidy race.
To enable Member States to provide State Aid in response to the energy cost crisis triggered by the war in Ukraine, the EU Commission introduced flexibility with State Aid rules to enable temporary, targeted and limited State Aid to support businesses impacted by the energy crisis.
As with the wider economy including households and SMEs, energy intensive industries, have experienced rising energy costs in recent years.
There are a range of incentives and advice available to business to help them use energy efficiently, diversify their fuel use and switch to renewable energy sources.
We encourage all businesses to avail of the wide range of supports in particular the Climate action and energy supports which are all detailed on the Department’s website.
Schemes under the Temporary Crisis and Transition Framework, and those administered under other parts of the broader State Aid framework, have reached many Irish businesses, and have provided timely and effective support when required.
As provided for by the Temporary Crisis and Transition Framework (TCTF), the Ukraine Enterprise Crisis Scheme (UECS) was introduced to address liquidity shortages faced by businesses affected by the war in Ukraine, and to provide aid for energy-intensive businesses that were impacted by severe increases in energy prices. The Government is committed to providing necessary supports to businesses and the general State Aid rules provide ample opportunities to achieve this and following the Commission’s adoption of an amendment to prolong the crisis provisions of the TCTF, consideration will now be given to an extension of the UECS into 2024.
