Ruairi Ó Murchú (Louth, Sinn Fein)
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195. To ask the Minister for Finance if the newly announced temporary business energy support scheme can be used by companies supplying heat through communal and district heating schemes; and if he will make a statement on the matter. [53088/22]

Paschal 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 scheme will provide support to qualifying businesses in respect of energy 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.

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. Sporting bodies that carry on certain activities that would be chargeable to tax under Case I or II of Schedule D but for an available exemption are included in the scheme. Charities that carry on activities that would be chargeable to tax as trading income, but for an available tax exemption, are also included in the scope of the scheme. The scheme will operate on a self-assessment basis.

Where companies are supplying heat through communal and district heating schemes and those companies are carrying on a trade that is chargeable to tax under Case I of Schedule D, they will be eligible for support under TBESS where the conditions of the scheme are met.

However, if companies are supplying heat through communal and district heating schemes and those companies are not for profit entities, it is unlikely that they would be regarded as carrying on a trade that is chargeable to tax. Such companies would not be within the scope of TBESS and would not be eligible to apply for support under the scheme.

TBESS is aimed at businesses whose average unit gas or electricity price has risen by over 50% for the relevant billing period between September 2022 and February 2023, as compared with their average unit gas or electricity price in for the corresponding reference period in the previous year.

Payments will be made on the basis of 40% of the amount of the increase in eligible electricity or natural gas costs between the bill amount which is the subject of the claim and the bill amount in the corresponding reference period in the previous year. Payments are generally subject to a monthly cap of €10,000 per trade or per profession. However, where a business carries on its trade or profession from more than one location, 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. 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.

Any amount charged on an energy bill for a claim period that is not expended wholly and exclusively for the purpose of the trade or profession must be deducted from the relevant energy bill amount for the claim period when calculating the eligible cost. This could be the case where, for example, a single electricity connection supplies both the business and a domestic dwelling.

Registration and claims must be made through the Revenue Online Service (ROS). It is expected that the TBESS system will go live over the weekend of 26th to 27th November.

Revenue has published comprehensive guidelines on the operation of the scheme on the Revenue website, which includes information on eligibility for the scheme and how claims may be made.