Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I move amendment No. 86:

In page 189, to delete lines 37 to 43 and substitute the following: “(2)(a) Where the Minister for Finance makes a determination of the kind lastly referred to in subsection (1)(e), the Minister for Finance shall, as he or she deems fit and necessary-

(i) make an order providing that the day referred to in the definition of “specified period” in section 88(1)as the day on which the period therein referred to shall expire shall be such day as is later than 28 February 2023 (but not later than 30 April 2023) as the Minister for Finance considers appropriate and specifies in the order,

(ii) make an order providing that an amount, being such amount as the Minister for Finance-

(I) considers necessary to-

(A) fulfil, better, the objectives specified in subsection (1)(a), or

(B) facilitate the furtherance of any of the purposes specified in subsection (1)(b),

and

(II) specifies in the order,

shall stand substituted for an amount for the time being specified inparagraph (a) of section 88(9), represented by “B” in the formula in paragraph (b)(i)of section 88(9)and specified in paragraph (b)(iii)of section 88(9)(and which amount, so specified or represented as the case may be, is greater or lower, as the Minister for Finance considers necessary, than the amount concerned for the time being specified or represented in the foregoing provisions) and references in this subparagraph to the amount concerned for the time being specified or represented in the foregoing provisions are references to the amount concerned for the time being specified or represented in those provisions, as enacted, or in consequence of a previous order that has been made under this subparagraph,

(iii) make an order providing that an amount, being such amount as the Minister for Finance-

(I) considers necessary to-

(A) fulfil, better, the objectives specified in subsection (1)(a), or

(B) facilitate the furtherance of any of the purposes specified in subsection (1)(b),

and

(II) specifies in the order,

shall stand substituted for an amount for the time being specified in paragraph (b)(i)of section 88(9)(other than the amount represented by “B” in the formula in paragraph (b)(i)of section 88(9)) (and which amount, so specified, is greater or lower, as the Minister for Finance considers necessary, than the amount concerned for the time being specified in the foregoing provision) and references in this subparagraph to the amount concerned for the time being specified in the foregoing provision are references to the amount for the time being specified in the foregoing provision, as enacted, or in consequence of a previous order that has been made under this subparagraph.”.

Sections 87 to 89 of the Finance Bill as published provide for the temporary business energy support scheme, TBESS. The key features of the scheme are as follows. It will provide support for companies, self-employed individuals and partnerships carrying on a trade or profession, the profits from which are chargeable to tax under case I or case II of Schedule D. Sporting bodies that carry on certain activities which would be chargeable to tax under case I or case II of Schedule D, but for an available exemption, are included in the scheme. Charities that carry on activities that would be chargeable to tax as trading income, but for an available tax exemption, are also included in the scope of the scheme.

The scheme will operate in respect of electricity and natural gas costs relating to the period from 1 September 2022 to 28 February 2023. Claims may be made in respect of each calendar month within this period. The first claim period for which a claim can be made is September 2022. The scheme operates by reference to bills for the metered supply of electricity and natural gas through electricity accounts or gas connections identified by its own meter point reference number, MPRN, or gas point reference number, GPRN.

To be eligible to make a claim under TBESS in respect of an electricity bill or a natural gas bill, a business must be able to demonstrate that the average unit price for electricity or natural gas has increased by 50% or more compared with the average unit price of electricity or natural gas in a reference period. In broad terms, this is the average unit price in the month that is 12 months prior to the claim period to which the relevant bill relates. This increase is known as the “energy costs threshold”. Once the eligible business has passed the energy costs threshold in relation to a particular electricity or natural gas bill and satisfies a number of other conditions, it is what is called a “qualifying business”. A qualifying business is entitled to claim a temporary business energy payment, TBEP, amounting to 40% of its eligible cost, subject to a €10,000 cap or a €30,000 cap where the business is carried on from more than one location, for each monthly claim period. Revenue has published comprehensive guidelines on the operation of the scheme, which include information on eligibility for the scheme and how claims may be made.

Section 87 is being amended to specify that the scheme will run until 28 February 2023 rather than 31 December 2022. The reason for this amendment is because the temporary crisis framework, TCF, has been extended beyond 31 December.

Section 88 is being amended to ensure that pay-as-you-go customers can claim under the scheme, as intended. This section is also being amended to exclude credit and financial institutions from the scope of TBESS. This is a condition of receiving state aid approval from the European Commission for the scheme.

A number of amendments are being made to the section to reflect recent revisions to the Commission’s temporary crisis framework, including an increase in the limits of aid that apply in regard to a single undertaking. The increased limits are: €250,000 where the single undertaking is active in the primary production of agricultural products; €300,000 where the single undertaking is active in the production, processing and marketing of fishery and aquaculture products; and €2 million per single undertaking in any other case. Amendments are being made in regard to the information being supplied to Revenue in connection with a claim and the process for clawing back amounts incorrectly claimed under the scheme. Provision is also being made to require records to be maintained and made available by claimants to Revenue.

To satisfy requirements under the temporary crisis framework, provision is also being made to publish certain additional details in regard to qualifying businesses that form part of a single undertaking in circumstances where the single undertaking receives support above certain thresholds set out in the framework. To mitigate the possibility of fraud, provision is also being made to allow Revenue to consult energy or gas suppliers for the purpose of verifying a claim made under TBESS.

Section 89 is being amended to ensure penalties relating to TBESS can be determined and collected in the same manner as other penalties.

In my earlier comments on section 87, I neglected to make the point that section 87 makes reference to the change in the date of the scheme, which I said went on until 28 February. I omitted to acknowledge that it is also being amended to provide that the monthly caps can be increased or decreased by order where such change is considered necessary to meet the objectives of the scheme.