Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I am glad I have time to put facts on the record on this issue. It is a good news story. We are moving it forward.

The cost of energy is a major factor, as people will be aware, in the operation of most businesses. The impact of the significant price increases experienced by businesses in 2022 and 2023, following the Russian invasion of Ukraine, was mitigated by the introduction of the temporary business energy support scheme, TBESS, to support companies dealing with increases in the price of metered electricity and natural gas. Following a review of the operation of TBESS, the Government agreed to the development and implementation of a scheme to extend similar supports to companies that rely on kerosene oil for heating purposes.

The development of a scheme is justified by the fact that the price of kerosene was 64% higher during the 2022 TBESS reference period than in 2021. It is intended that the kerosene scheme will provide flat rate payments to businesses to mitigate the impact of price increases during 2022. Businesses will receive banded payments based on the volume of kerosene usage during the year. We have tried to simplify the scheme so that it is much easier to apply for and the amounts are much clearer. The possibility of extending the scheme to businesses that use liquid petroleum gas, LPG, was also examined. However, available data showed that LPG prices increased by less than 20% during the TBESS reference period compared to 2021. It was therefore considered that the inclusion of LPG users in the scheme could not be justified. In order to qualify for TBESS, applicants must have seen prices increase by more than 30%. The increase in the price of LPG was not close to that so we could not justify including it. The opposite was the case for kerosene, the price of which increased by 64%.

Officials in my Department are working with Enterprise Ireland and other relevant Departments to finalise details of the kerosene scheme. The payments will be made through an extension of Enterprise Ireland. We will not do so through Revenue this time. The scheme is more or less finalised now. It is anticipated that we will shortly be in a position to notify the European Commission of the proposed scheme, as required under EU state aid law. It is intended that the scheme will be launched in September, subject to state aid approval and approval by the Department of Public Expenditure, National Development Plan Delivery and Reform being received and as has been agreed by the Cabinet. I hope we will get it up and running at the start of September.

Approximately 22,000 companies could potentially apply.

We anticipate that we could spend somewhere between €15 million and €24 million. It depends on how many companies apply.

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