Written answers

Tuesday, 8 November 2022

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
Link to this: Individually | In context | Oireachtas source

252. To ask the Minister for Finance when the temporary business energy support scheme will open for applications; and if he will make a statement on the matter. [54299/22]

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
Link to this: Individually | In context | Oireachtas source

253. To ask the Minister for Finance the estimated number of data centres that will benefit from the temporary business energy support scheme; and if they will be included in the reported potential extension of the scheme past February 2023 (details supplied); and if he will make a statement on the matter. [54093/22]

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

266. To ask the Minister for Finance further to Parliamentary Question No. 241 of 25 October 2022, if multinational corporations, including those with global revenue above €750 million, will be eligible for the maximum €10,000 energy grant; if multiple subsidiaries of the same company can each make applications for the energy grant up to the maximum of €10,000; and if he will make a statement on the matter. [54512/22]

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context | Oireachtas source

276. To ask the Minister for Finance his views on concerns raised from a local business (details supplied) in respect of concerns on the 40% cap on the proposed TBESS; and if he will make a statement on the matter. [54763/22]

Photo of Kathleen FunchionKathleen Funchion (Carlow-Kilkenny, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

280. To ask the Minister for Finance if his attention has been drawn to concerns raised by butchery businesses that rely heavily on refrigeration to operate their companies, in order to comply with the highest standards of food safety and hygiene, food production, processing, manufacturing and packaging, which all require a large amount of electricity; the steps that his Department has taken to ensure that more butchery businesses are not forced to close due to already high energy costs; and if he will make a statement on the matter. [54896/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 252, 253, 266, 276 and 280 together.

Details of the new Temporary Business Energy Support Scheme (TBESS) are set out in Finance Bill 2022. The scheme will provide support to qualifying businesses in respect of electricity and natural gas costs relating to the period from 1 September 2022 to 28 February 2023. The scheme is designed to be compliant with the EU state aid Temporary Crisis Framework and will need to be approved by the EU Commission in advance of making payments.

To qualify under the TBESS, a business must be tax compliant and carry on a trade or profession the profits of which are chargeable to tax under Case I or II of Schedule D. The business must also be able to demonstrate that the average unit price for electricity or natural gas on a relevant bill has increased by 50% or more as compared to the average unit price in a reference period. Where this threshold is passed, and certain other criteria are met, the business, regardless of its size, will be able to claim a Temporary Business Energy Payment amounting to 40% of its eligible cost, subject to a cap for each monthly claim period.

The eligible cost amount is calculated as the increase in an electricity or natural gas bill as compared to a bill amount in an applicable reference period.

In general, a monthly cap of €10,000 per trade or profession applies, however, this may be increased where the trade or profession is carried on across multiple locations, as identified by the business having multiple electricity accounts/ MPRNs in different locations. The cap may be increased by €10,000 per electricity account/ MPRN, subject to an overall monthly cap of €30,000 per trade or profession. The increased cap is available in relation to both electricity and natural gas costs relating to the trade or profession. An overall cap on the amount of support that a business can claim will also apply in line with requirements of the European Commission’s Temporary Crisis Framework.

Where separate trades are carried on by companies within a group and the eligibility criteria are met by each of them, the group companies will each be able to make a claim under the scheme, subject to the monthly cap referred to above, and subject to the overall limits provided by the Temporary Crisis Framework.

With the exception of credit institutions and financial institutions, which are specifically excluded from obtaining aid under the Temporary Crisis Framework, the scheme is open to all sectors irrespective of company size.

The number of data centres in Ireland is not an issue that comes under my aegis as Minister for Finance. I understand from information obtained from the electricity networks that they have connection agreements for approximately 40 data centres but there could be a number of data halls behind each connection point. However, as I have said before, larger businesses who have the purchasing power to enter into favourable forward pricing arrangements and have not seen an increase of 50% over 2021 prices, will not be eligible for support under the scheme

Claims must be made through the Revenue Online Service (ROS) within 4 months of the end of the relevant claim period to which the relevant electricity or natural gas bill relates.

Revenue has published comprehensive guidelines on the operation of the scheme, which includes information on eligibility for the scheme and how claims may be made. The guidelines are available on the Revenue website (Revenue.ie>Starting and running a business>Temporary Business Energy Support Scheme>Temporary Business Energy Support Scheme guidelines).

Comments

No comments

Log in or join to post a public comment.