Jackie Cahill (Tipperary, Fianna Fail)
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83. To ask the Minister for Enterprise, Trade and Employment the further supports planned for businesses challenged by high energy costs; and if he will make a statement on the matter. [8979/23]

Simon Coveney (Cork South Central, Fine Gael)
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The Government is acutely aware of the ongoing cost of living crisis and continues to monitor all cost of living schemes currently available to businesses and families. The Government was not found wanting during the COVID-19 pandemic and it will continue to support businesses now.

As you are aware the Government announced on Tuesday last a new round of cost of living supports. As part of this the current Temporary Business Energy Support Scheme (TBESS) is being amended to allow more businesses apply for this grant.

It is now proposed to make the following amendments to the TBESS:

- Extend the end date of the scheme, which is currently 28 February 2023, to 31 May 2023 with an option to further extend it to 31 July 2023 by Ministerial Order.

- Reduce the ‘energy cost threshold’ for the scheme, so a tax compliant business can claim relief where it can demonstrate that the average unit price for electricity or natural gas on the relevant bill has increased by 30 percent or more as compared to the average unit price of electricity or natural gas in the reference period. This revised threshold will be applied on a retrospective basis from September 2022 so businesses who were not previously eligible for the scheme due to the 50 percent energy cost threshold may now be eligible for the scheme.

- Increase, from 1 March 2023, the level of relief from 40 percent of the eligible cost to 50 percent, subject to the monthly limits on aid provided for under the scheme.

- Raise the monthly cap from €10,000 to €15,000 from 1 March onwards.

It should be noted that State aid approval under the "Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia” is required before these amendments to TBESS can be implemented.

I have also made a commitment to explore options for provide assistance to businesses who rely on Oil and LPG as their energy source and revert to Government on this matter.

The Government also approved the following which will help businesses:

- The temporary reductions in VAT on gas and electricity, from 13.5% to 9%, will be extended to 31 October 2023 at an estimated cost of €115 million.

- The temporary reduction in VAT on Tourism and Hospitality, from 13.5% to 9%, will be extended to 31 August 2023 at an estimated cost of €300 million.

The Deputy should also be aware, that the Small Firms Investment in Energy Efficiency Scheme was announced in Budget 2023. The objective of the Scheme is to support capital investment by businesses to reduce carbon emissions based on energy efficiency projects. The rationale for the Scheme would be to support companies to reduce their carbon emissions and overall energy costs by accelerating the adoption of low carbon technologies or processes.

Taking into account national policy and in consultation with the LEO network, Enterprise Ireland is developing guidelines and eligibility criteria for the rollout of this new Scheme by each of the 31 Local Enterprise Offices. A budget of €2 million has been allocated nationally and it is planned to launch the Scheme in Q1 2023.

Simon Coveney (Cork South Central, Fine Gael)
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As you know, the Temporary Business Energy Support Scheme (TBESS) is a government grant designed to help businesses with increasing energy costs. The Scheme has been designed by the Department of Finance and is being administered by the Revenue Commissioners. However, funding for the Scheme is allocated to the Vote of my Department and provides daily transfers at the request of the Revenue Commissioners.

My officials have been in ongoing contact with officials in the Revenue Commissioners and the Department of Finance. We have sought extensive feedback from our stakeholders which has all been provided to the Department of Finance to inform their review of the Scheme. I have also discussed the Scheme with the Minister for Finance and have been actively involved in the recent Government discussions in relation to the future cost of living supports.

Following these discussions, the Deputy will be aware that Government announced on Tuesday last a new round of cost of living supports. As part of this the TBESS is being amended to ensure more businesses are eligible to apply.

It is now proposed to make the following amendments to the TBESS:

- Extend the end date of the scheme, which is currently 28 February 2023, to 31 May 2023 with an option to further extend it to 31 July 2023 by Ministerial Order.

- Reduce the ‘energy cost threshold’ for the scheme, so a tax compliant business can claim relief where it can demonstrate that the average unit price for electricity or natural gas on the relevant bill has increased by 30 percent or more as compared to the average unit price of electricity or natural gas in the reference period. This revised threshold will be applied on a retrospective basis from September 2022 so businesses who were not previously eligible for the scheme due to the 50 percent energy cost threshold may now be eligible for the scheme.

- Increase, from 1 March 2023, the level of relief from 40 percent of the eligible cost to 50 percent, subject to the monthly limits on aid provided for under the scheme.

- Raise the monthly cap from €10,000 to €15,000 from 1 March onwards.

It should be noted that State aid approval under the "Temporary Crisis Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia” is required before these amendments to TBESS can be implemented.

I have also made a commitment to explore options for provide assistance to businesses who rely on Oil and LPG as their energy source and revert to Government on this matter.