Peadar Tóibín (Meath West, Aontú)
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47. To ask the Minister for Enterprise, Trade and Employment whether his Department has undertaken any assessment of how electricity costs are impacting SMEs across the country; and if he will make a statement on the matter. [20964/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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I am acutely aware of the important role SMEs play in our economy, and the challenging cost environment in which many of them are operating, albeit that energy prices have fallen from their highs at the time of Russia's invasion of Ukraine. My Department closely monitors costs across our economy and assess appropriate policy mechanisms to ensure our businesses are competitive and resilient. This analysis is developed to inform policy in a number of ways, for example, through the work of the National Competitiveness and Productivity Council.

While the Department of Environment, Climate and Communications is the lead department in terms of energy policy, my Department works closely with Minister O'Brien T.D., his officials, and energy sector stakeholders to ensure costs for businesses are appropriate and affordable.

The Programme for Government commits to “prioritise investment into our electricity grid to update our power generation systems to enhance security and affordability for consumers and businesses” and to “increase take-up of grants to support small businesses in adopting energy-efficient technologies, cutting costs, and reducing their environmental footprint.”

I know that high electricity costs put pressures on businesses, particularly small enterprises, those with tight margins and those particularly dependent on certain fuels. Our economy's competitiveness over the medium-term will in part depend on a diversified and cost-effective energy system. We must acknowledge that we have a widely spread and low-density population. This results in higher network and connection costs, such as in building, maintaining and operating our electricity grid. This is particularly significant as we undergo a very large investment in energy infrastructure to meet our renewable energy targets at a time of significant economic and population growth.

In this regard I supported and welcome the recent announcement that Minister O'Brien's department is to establish a cross-government Energy Affordability Taskforce to identify, assess and implement measures that will enhance energy affordability for households and businesses. This will entail both short term measures in preparation for Budget 2026, in addition to more medium and longer-term measures. My officials and I will engage constructively with this work.

Businesses are playing an important and active role in diversifying our energy system, directly contributing to our energy transition and deployment of renewable generation. Many companies from SMEs to LEUs have deployed renewable energy generation, from solar panels on roofs to onshore wind turbines. I am encouraging all eligible SMEs to avail of the SEAI Business Energy Upgrades Scheme, which provides 'rapid approval' grants and supports SMEs to improve their energy efficiency and reduce costs. the Local Enterprise Offices are also providing generous Energy Efficiency Grants for small and micro businesses.

My Department remains active in supporting Irish enterprises experiencing high costs. The Increased Cost of Business Scheme (ICOB) and the Power Up Grant, administered by the Local Authorities on behalf of my Department, is one such intervention. In total over €400 million was paid out to businesses in 2024. The second ICOB payment and the Power Up grant specifically targeted the retail, hospitality and beauty sectors.

My Department and I continue to monitor the business environment, and in particular energy costs, and inform Government policy accordingly. In particular I expect that this analysis will feed into work underway across Government to prepare an action plan on competitiveness and productivity.