Éamon Ó Cuív (Galway West, Fianna Fail)
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150. To ask the Minister for Finance the reason the temporary business energy support scheme is based on the difference in electricity costs one year ago and not two years ago as the main increase in price occurred between early 2021 and early 2022 when they levelled off at their continuously high price; whether he intends to amend the scheme to deal with the ongoing high price of electricity in 2023; and if he will make a statement on the matter. [20989/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The Temporary Business Energy Support Scheme (TBESS) was introduced in Finance Act 2022. It is a broad-based measure designed to assist businesses that have experienced a significant increase in their natural gas and electricity costs as a result of the invasion of Ukraine by Russia. TBESS is a State aid measure that operates within the rules of the European Commission Temporary Crisis Framework for State aid measures to support the economy following aggression against Ukraine by Russia, (now known as the Temporary Crisis and Transition Framework (TCTF)). It operates by comparing the average unit price for the relevant bill period with the average unit price in the corresponding reference period in the previous year. This is to ensure the TBESS complies with State aid rules.

Recognising the ongoing difficulties that many businesses face in terms of energy prices, in February of this year, I exercised the power contained in Finance Act 2022 to extend the scheme to 30 April 2023 and also to increase the monthly caps on aid granted under the scheme. From 1 March the monthly caps on aid increased to €15,000 per trade or profession, or in cases where the trade or profession of a qualifying business operates across more than one location, €15,000 per MPRN up to a maximum amount of €45,000 per month. In addition, at the end of February 2023 the Government decided, as part of a package of cost of living measures, to make a number of enhancements to the scheme. The enhancements are aimed at allowing more businesses qualify for support and at increasing the level of support given.

These enhancements, which have received State aid approval under the European Commission TCTF are being legislated for in Finance Bill 2023 and are as follows:

• The extension of the scheme to 31 May 2023.
• The reduction in the energy cost threshold for entry into the scheme from 50 percent to 30 percent with effect from 1 September 2022.
• The increase in the amount of the temporary business energy payment (TBEP) from 40 percent of the eligible costs to 50 percent of the eligible costs for claim periods from 1 March 2023 until the end of the scheme, subject to the relevant monthly limits.
• The amendment of the time limit for making claims under the scheme such that businesses now have two months from the end of the scheme to complete their claims.