The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, and the Minister for Finance, Paschal Donohoe, have today (Friday, November 25) welcomed the European Commission state aid approval for the Temporary Business Energy Support Scheme (TBESS).
The TBESS, as announced in Budget 2023, will assist businesses with their energy costs during the winter months, which is likely to include farming enterprises such as dairy or pig operations.
The € 1.2 billion scheme will be administered by the Revenue Commissioners and the scheme will operate by comparing the average unit price for the relevant bill period in 2022 with the average unit price in the corresponding reference period in 2021.
The aid will take the form of direct grants. It will be open to companies of all sizes active in all sectors that are affected by the crisis, except credit and financial institutions.
The scheme will run initially until the end of next February but it could be extended until the end of April.
Energy support
The approval by the European Commission means that Revenue can proceed with opening the TBESS online system for registrations on Saturday November 26, 2022.
Businesses will then use the system to submit claims under the scheme from December 5. Payments under the scheme will be made once Finance Bill 2022, which contains the legislation underpinning the scheme, is enacted later in December.
Revenue recently published detailed guidelines on the operation of the energy support scheme.
These guidelines will be updated today (Friday), setting out further details regarding how businesses can register for, and make claims under, the scheme using the Revenue Online Service.
In order to be eligible, companies must demonstrate that the average monthly unit price for either electricity or gas has increased by at least 50%, compared to the average unit price for the same month in the previous year.
Such businesses are eligible for aid up to 40% of those additional costs.
Businesses urged to apply
Tánaiste Leo Varadkar said: “This scheme is so important to so many businesses struggling to pay astronomical gas and electricity bills.
“My government colleagues and I have been hearing from businesses all around the country about how much they really need this money – and we want to get it to them as soon as possible – ideally before Christmas.
“So I urge businesses owners and managers – have your bills ready, have your tax clearance certs ready, and make sure that your claim can be processed by Revenue without any undue delay.”
Meanwhile, Minister Donohoe added: “TBESS is the largest single item announced as part of Budget 2023, the government’s cost of living budget that will help individuals, families and businesses deal with rising prices.
“The scheme will provide much needed support to thousands of businesses across the country who are experiencing a material shock to the price of their energy inputs.
The approval by the European Commission paves the way for Revenue to open the online system for registrations for the scheme on November 26, and to accept claims under the scheme from December 5. Businesses will start to receive payments under the scheme as soon as the Finance Bill is enacted later in December.”