Oireachtas Joint and Select Committees
Wednesday, 9 November 2022
Joint Oireachtas Committee on Jobs, Enterprise and Innovation
Current Issues Affecting Trade in Ireland: Enterprise Ireland
Mr. Donal Leahy:
It is an absolute requirement either to have a plan in place or to be preparing one. Stream 2 involves additional checks and balances. The 15% EBITDA reduction is also there. On top of that, all companies must be high energy-intensive users. That means that at least 3% of their turnover in 2021 must be for energy. It will exclude companies for which energy is not a real part of their cost base. The amount that companies get under stream 2 is limited. The first thing is that they are only getting 30% of anything over a doubling of their energy costs. If a company had €1 million energy cost in 2021 and it rises to €3 million, it would not receive anything for the second million and would receive 30% of the third million. This means that it would receive €300,000. That is another safeguard to make sure that there is not abuse. The schemes that are in place under EU rules will be there until the end of this year.
We will be closely monitoring what happens. If we see abuse or money going to companies that would not be the best benefactors of it, we will put in changes.
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