Brendan Griffin (Kerry, Fine Gael)
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75. To ask the Minister for Finance if he will extend the temporary business energy support scheme to group water schemes with electricity supplies (details supplied); and if he will make a statement on the matter. [58389/22]

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 31 December 2022 or, where it is possible to grant State aid beyond that date under the European Commission’s Temporary Crisis Framework (TCF), to 28 February 2023. 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. The scheme will be operated on a self-assessment basis. Organisations 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.

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, increasing to a maximum of €30,000 in certain circumstances.

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. A business who has not seen an increase of 50% over the period will not be eligible for the scheme. This means, for instance, larger corporates who have the purchasing power to enter into favourable forward pricing arrangements and have not seen an increase of 50% of 2021 prices, will not be eligible for support under the scheme.

I understand that group water schemes are generally independent, not for profit organisations providing water to specific groups of households. These bodies do not carry on a trade that is chargeable to tax, or that would be chargeable to tax but for the tax exemptions referred to above.

Group water schemes are therefore not within the scope of the Temporary Business Energy Support Scheme and I have no plans at present to change this.