Factsheet for measure
IE-2022-36/2958
– measures in Ireland
Support for businesses' energy bills
Background information
As part of the 2023 budget, initiatives were announced to support businesses impacted by increasing energy costs due to the war in Ukraine. The budget was planned against a projected general government surplus of €970 million in 2022 and a surplus of €6.17 billion in 2023.
The budget took place against a background of high inflation and calls for the government to intervene to assist struggling businesses.
Content of measure
Temporary Business Energy Support Scheme (TBESS)
The scheme will provide qualifying businesses with up to 40% of the increase in their electricity or gas bills up to a maximum of €10,000 per month. It is expected to be backdated to September 2022 and will run until February 2023. The scheme will be administered by the Revenue Commissioners.
Initially, the scheme was available to Case 1 businesses only. Case 1 businesses include shops, hotels and restaurants. However, following representations from Case 2 businesses, which are defined as 'professional businesses,' and include as doctors, accountants and dentists, the government extended the scope of the scheme.
Ukraine Enterprise Crisis Scheme
The Ukraine Enterprise Crisis Scheme assists viable, but vulnerable firms in manufacturing and internationally traded services.
It will include direct grants, repayable advances, equity and access to financing for enterprises that face economic challenges as a result of increase input costs and supply chain difficulties, and which have suffered a 15% decrease in operating surplus in 2022 compared to 2021.
There will also be aid to cover additional costs experienced by energy-intensive businesses (who spend more than 3% of their turnover on energy), which have suffered a 15% decrease in operating surplus in 2022 compared to 2021, and doubled per unit cost of gas/electricity. The aid will be in the form of direct grants. Aid cannot exceed more than 30% of eligible costs and will range between €20,000 and €2 million.
It will be administered through Enterprise Ireland, IDA and Údarás na Gaeltachta.
Use of measure
Figures from the Department of Enterprise, Trade and Employment show that as of 12 January 2023, €9.5 million had been approved for payment under the Scheme with 4,392 claims approved and paid.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Applies to all businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
Public support service providers
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
-
No involvement
-
Main level of involvement: N/A
Involvement
No involvement.
Views and reactions
Ibec, which represents businesses, said it has been consistently calling on Government to address the energy crisis and commended the Budget announcement of targeted use of measures to deliver supports for those most exposed to the spiralling energy costs. It is imperative that the supports announced today now work towards having a material impact in offsetting spiralling energy costs. Such supports must work for all sectors of the economy, including experience economy, retail, manufacturing, and SMEs.
Sources
