Hundreds of rural pubs are facing the threat of closure due to their exclusion from government energy supports as their premises are not connected to the natural gas pipeline, according to the Vintners’ Federation of Ireland (VFI).
The group said that pubs using kerosene and LPG gas to heat their premises should be allowed join the Temporary Business Energy Support Scheme (TBESS) and claim supports.
However, the Department of Finance is refusing to allow pubs using energy sources other than natural gas or electricity to join the scheme.
VFI
The TBESS, which was announced in Budget 2023, is designed to help businesses with their energy costs during the winter months.
The €1.2 billion scheme, to be administered by the Revenue Commissioners, 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 TBESS will run initially until the end of next February but it could be extended until the end of April.
“While we welcome the introduction of TBESS, where pubs claim back 40% of the increase in energy costs over the winter, the exclusion of 1,500 pubs simply because they heat their pubs using kerosene and LPG gas is discriminatory,” VFI chief executive, Paul Clancy, said.
“Most rural pubs are not connected to the natural gas pipeline so it’s impossible for them to use anything other than kerosene and LPG gas. We’re asking the Department of Finance to reconsider its stance on this issue.
“We estimate that 1,500 VFI members use either kerosene or LPG bulk gas to heat their commercial businesses, so swathes of businesses in rural Ireland are by default excluded from accessing these supports.
“The situation is so dire that if energy supports are not granted to these businesses many could be forced to close.
“It is deeply unfair that a large proportion of rural businesses need to suffer unduly when the TBESS could be modified to cater for these members.
“In the interim, until this issue is resolved, the VFI would recommend a ‘one-off’ grant payment to support businesses currently excluded by the scheme,” Clancy said.