Willie O'Dea (Limerick City, Fianna Fail)
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58. To ask the Minister for Finance the details of the second three-month assessment of the temporary business energy support scheme; and if he will make a statement on the matter. [21489/23]

Aindrias Moynihan (Cork North West, Fianna Fail)
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The TBESS was being reviewed every three months. The most recent review of that was at the end of last month. Can the Minister give an outline of the issues in the scheme at that stage and of the outcome of that review?

Michael McGrath (Cork South Central, Fianna Fail)
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Section 100 of the Finance Act 2022 requires that an assessment of the TBESS be carried out at intervals of not less than every three months, beginning on 20 October 2022. On 27 April 2023 I published the second three-month assessment of the scheme. The first assessment was published on 28 January. The assessment was undertaken by the Department of Finance with the assistance of the Department of the Environment, Climate and Communications and the Revenue Commissioners. It contains up-to-date data on the trajectory of energy prices, the impact from and effects of, energy prices on the economy, as well as other relevant issues relating to the operation to the scheme. It also contains details of amendments made to the scheme since the first assessment was published back in January.

As noted in the assessment, the worst-case scenarios for energy prices that were in prospect last autumn, when the TBESS and other schemes were being developed, have not materialised. A warmer-than-usual winter, as well as mitigation measures taken across Europe, have curbed demand for energy and led to reduced, rather than increased, energy prices. As a result, many businesses fell short of the thresholds built into the scheme as originally designed.

According to data provided by the Department of the Environment, Climate and Communications when compiling the assessment, this fall in energy prices is expected to continue, with prices for the second quarter of this year expected to be 24% lower relative to the first quarter. However, these data also show that gas prices remain significantly above - around double - levels seen in previous years. Notwithstanding the decline in energy prices at the wholesale level, it is taking time for reductions to filter through to business customers, as we know. As a consequence, I took the decision in February to exercise the power contained in the legislation to extend the scheme to the end of April and to increase the monthly limits on aid under the scheme.

This extension, together with a further extension to 31 May and additional enhancements provided for as part of the Finance Bill 2023, will allow more businesses to avail of the scheme and will provide increased relief. These enhancements include a reduction in the energy cost threshold for entry to the scheme from 50% to 30%, with effect from September 2022, and the increase in the amount of the temporary business energy payment from 40% to 50% of the eligible costs for the claim period from 1 March 2023 until the end of the scheme, subject to the relevant monthly limits.

Finally, as noted in the assessment, it is expected that these enhancements will result in an increase in the uptake of the scheme and will help businesses to mitigate the worst effects of the energy crisis.

Aindrias Moynihan (Cork North West, Fianna Fail)
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The introduction of the business energy support scheme was a very strong move by the Government to help businesses with their energy costs. The scheme was helpful to many, even though there were issues initially. In fairness to the Government, the Department identified this issue and took measures to make the scheme more accessible and to support businesses better with the scheme because of the low take-up. We recognise as well that there was an issue with people who did not have access to the gas network. There is a gas network in many built-up areas but not right across the country. Businesses in towns and villages and the countryside that do not have mainline gas and may be heating their buildings through liquefied petroleum gas, LPG, or kerosene have experienced the same pressures as any other business. There was a commitment to give access to a variant of the scheme in order that people experiencing those energy costs would be supported. Will the Minister give an outline of that measure?

Jackie Cahill (Tipperary, Fianna Fail)
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My question, No. 65, is very similar to this one, so I will come in just to avoid duplication. I look for figures for Clare, Limerick and Tipperary. My understanding is that 37,100 claims have been approved at the time of the assessment. Does the Minister expect any more to come through the system? I concur with the points made by Deputy Moynihan. As our questions are similar, I said I would ask for further clarification.

Michael McGrath (Cork South Central, Fianna Fail)
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The Finance Bill, which provides for some of the changes to the TBESS, passed in the Seanad this evening so will be signed into law shortly. As the Deputies will know, the reduction in the energy cost threshold for entry to the scheme from 50% to 30% will be backdated to September 2022. Therefore, businesses that did not qualify all along because they did not meet that 50% test, if they meet the new 30% test, will receive the payment and it will be backdated to last autumn. The increase in the payment of the eligible cost is going from 40% to 50%. That can be done only prospectively, that is, going forward, from 1 March until the end of the scheme, and that is subject to the relevant monthly limits. As the Deputies will know, we also increased the monthly limits.

As regards the LPG and the kerosene issue, my colleague, the Minister, Deputy Coveney, is working on that. It has taken longer than we would like, certainly, but he gave the commitment to bring forward a scheme, and work on that in the Department of Enterprise, Trade and Employment is ongoing.