Written answers

Thursday, 10 November 2022

Department of Finance

Business Supports

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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121. To ask the Minister for Finance if he will clarify if firms who have returned a profit for the financial year ahead and that have applied for and received the temporary business energy support scheme, TBESS, will be required to return any amounts received from the State; and if he will make a statement on the matter. [55863/22]

Photo of Gerald NashGerald Nash (Louth, Labour)
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133. To ask the Minister for Finance if any data centres have applied for and been approved to draw down support under the temporary business energy support scheme; his plans, if any, to restrict data centres and other large energy users from availing of the TBESS; and if he will make a statement on the matter. [55836/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 121 and 133 together.

The Temporary Business Energy Support scheme (TBESS) will assist businesses with their energy costs over the winter months.

The TBESS is subject to State aid approval. Provided such approval is received in the coming weeks, it is expected that the scheme, which will be administered by the Revenue Commissioners, will be open for applications on 26 November, with the first payments being made shortly thereafter.

The TBESS is a broad based general scheme which is designed to provide aid to businesses affected by the energy crisis over the winter months.

In addition to the energy price increase condition (50% increase in unit price), businesses must meet the following criteria:

- has complied with its obligations in relation to tax registration, tax payments and filing of tax returns;

- is eligible for a tax clearance certificate throughout the claim period;

- is an eligible business during the claim period and intends to continue to be an eligible business following the end of the claim period.

There is no conditionality around the turnover, profitability or potential survival of the qualifying business. Nor is there any sectoral restrictions based on the type of business.

The scheme is a broad based scheme designed to help businesses with increasing energy prices. Part of the reason that the TBESS is not conditional is the difficulty drafting legislation that would meet the various proposals for conditionality put forward by various parties and that would be robust enough to ensure that it is not open to challenge. It could also be difficult to ensure that a condition like non-payment of dividends would not just result in dividends being delayed until after support payments are received. There could also be State aid issues with some such restrictions. The EU Temporary Crisis Framework specifically provides that “Measures targeting commercial energy users do not constitute State aid, provided such measures are of a general nature.”

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