John Paul Phelan (Carlow-Kilkenny, Fine Gael)
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44. To ask the Minister for Enterprise, Trade and Employment if his Department is liaising with IDA Ireland and the Department of the Environment, Climate and Communications to ensure that business energy costs can be reduced through the EU reform of the electricity market; and if he will make a statement on the matter. [11902/23]

Simon Coveney (Cork South Central, Fine Gael)
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I and my officials engage regularly with our national enterprise development agencies, including IDA Ireland, and directly with business stakeholders on the issues that impact on them. I am extremely conscious that current high energy prices are placing a strain on many businesses. As the Deputy alludes to, the cost of electricity for businesses is a concern from a competitiveness and resilience perspective for Ireland’s economy. A broad range of measures is being progressed to mitigate the pain of these increases in the short-term while investing in a secure and competitive energy market for the medium and long-term.

For example, last week I Government announced changes to the Temporary Business Energy Support Scheme (TBESS) to make it more accessible for businesses, with further changes to increase the level of support pending State Aid approval. I'm encouraging all businesses dealing with electricity or gas costs that have risen by more than 50% to apply immediately for support.

To deliver greater energy price competitiveness and stability over the medium-term, the Government plans to deliver a more diversified and secure energy system. Significant support for energy efficiency and a large volume of domestic renewable energy, alongside independent regulation that protects consumers will further deliver efficient, competitive energy prices in retail and wholesale markets.

My colleague, Eamonn Ryan, Minister for the Environment, Climate and Communications is leading on EU proposals for electricity market reform, engaging the Commission and Member States energy Ministers. The European Commission launched a public consultation into electricity market reform on 23rd January and Ireland submitted a position paper on the 13th February which can be accessed at gov.ie. The Government is supportive of reform proposals, and we will look to ensure that reforms incorporate the competitive principles in any revised market design. It is appropriate to look at the market design with a view to improving it particularly in context of increased renewables on our system, protecting our security of supply and ensuring competitive pricing for consumers. We need to strike the right balance in relation to investment opportunities to accommodate increasing renewable penetration, as well as flexibility signals for storage, demand side response and back up generation technologies. Ireland's position is that it is critical for market design and energy market contracts to operate such that consumers receive the full direct benefit of low-cost renewable energy sources such as solar and wind. The Commission has indicated that it will publish a proposal around 16th March, which is welcome.

John Paul Phelan (Carlow-Kilkenny, Fine Gael)
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45. To ask the Minister for Enterprise, Trade and Employment his plans to establish a scheme to assist manufacturers in paying energy costs; and if he will make a statement on the matter. [11904/23]

Neale Richmond (Dublin Rathdown, Fine Gael)
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The €200 million Ukraine Enterprise Crisis Fund, which was launched in October 2022, provides liquidity support to viable but vulnerable manufacturing and internationally traded services companies experiencing trading difficulties, as well as targeted supports for eligible energy intensive companies experiencing severe increases in energy costs.

The Temporary Business Energy Support Scheme (TBESS) is a grant designed to help businesses with increasing energy costs. The Scheme which has been designed by Department of Finance 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.

Following extensive stakeholder engagement in late January/early February 2023 on the operation of the Scheme, the Department of Finance conducted a review of the Scheme. Following this review, the Government as part of the new round of cost of living supports, decided to amend the Scheme to allow more businesses apply for this grant, including extending the Scheme to 30 April 2023 and increasing the eligible amounts.

For claim periods from 1 March 2023 onwards, a number of other proposed enhancements to the scheme are subject to State aid approval including to extend the Scheme to 31 May 2023 and other improvements.

I am also exploring options for providing assistance to businesses who rely on Oil and LPG as their energy source and I will revert to Government on this in due course.