Written answers

Thursday, 10 November 2022

Department of Finance

Business Supports

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
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109. To ask the Minister for Finance if he will ensure the temporary business energy support scheme is modified to enable SMEs to claim support for energy bills relating to the July and August 2022 period. [53861/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Details of the new Temporary Business Energy Support Scheme (TBESS) are set out in Finance Bill 2022. The aim of the scheme is to support qualifying businesses with their energy costs for the winter period and will run 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.

The TBESS will be available to tax compliant businesses carrying on a trade or profession the profits of which are chargeable to tax under Case I or Case II of Schedule D where they meet the eligibility criteria. Charities and sporting bodies that carry on certain activities which would be chargeable to tax under Case I or II of Schedule D but for an available exemption are included in the scope of the scheme. The scheme will operate on a self-assessment basis and will be administered by the Revenue Commissioners.

The scheme will operate by comparing the average unit price for the relevant bill period in 2022 with the average unit price in the corresponding reference period in 2021. If the increase in average unit price is more than 50% then the threshold has passed and the business is eligible for support under the scheme.

Once eligibility criteria are met, the support will be calculated on the basis of 40% of the amount of the increase in the bill amount. A monthly cap of €10,000 per trade will apply, rising to a maximum of €30,000 per month in certain circumstances. There is also an overall cap on what an undertaking can claim as set out in the Temporary Crisis Framework.

The Government and I have always recognised that it is not possible to fully mitigate the increase in energy prices incurred by businesses carrying out a trade or profession. The scheme has been designed to assist businesses with their energy costs over the winter months and I do not intend backdating it to cover energy bills earlier in the year.

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