Neale Richmond (Dublin Rathdown, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The cost of energy is a major factor in the operation of most businesses. The impact of the very significant price increases experienced by businesses in 2022 and 2023, following the Russian invasion of Ukraine, was mitigated by the introduction of the Temporary Business Energy Support Scheme to support companies dealing with increases in the price of metered electricity and natural gas.

Following a review of the operation of TBESS, the Government agreed to the development and implementation of a scheme to extend similar supports to companies that rely on Kerosene oil for heating purposes. The development of a scheme is justified by the fact that the price of Kerosene was 64% higher during the 2022 TBESS reference period than in 2021.

It is intended that the Kerosene Scheme will provide flat rate payments to businesses to mitigate the impact of price increases during 2022. Businesses will receive banded payments based on volume of Kerosene usage during the year.

The possibility of extending the Scheme to businesses that use Liquid Petroleum Gas was examined. Available data showed that LPG prices increased by less than 20% during the TBESS reference period compared to 2021. It was therefore considered that the inclusion of LPG users in the scheme could not be justified.

It should be noted that users of Kerosene and LPG are eligible to claim for any increased electricity or natural gas costs under TBESS.

Officials in my Department are working with Enterprise Ireland and other relevant Departments to finalise details of the Kerosene Scheme, and it is anticipated that we will shortly be in a position to notify the EU Commission of the proposed scheme, as required under EU State Aid law.

It is intended that the Scheme will be launched in September, subject to State Aid approval being received, as well as approval from the Department of Public Expenditure NDP and Reform and Cabinet agreement.