Retailers struggle with energy support scheme while bills continue to add pressure, say lobbyists

Wholesale and retail trade are the sectors of the economy that have received the most approved claims for this support.

Retail Ireland called on the government to extend the business energy support scheme past its deadline at the end of February, as firms struggle to complete the process to get financial aid.

Retail Ireland’s director Arnold Dillon said that the €1.3bn Temporary Business Energy Support Scheme, or Tbess, needs to be made clearer for applicants and extended until the end of 2023 as it sees no end in sight for soaring energy bills.

“We see energy prices continuing to be a very significant challenge and burden on many retail businesses as well as very significant inflationary pressures across the sector,” said Mr Dillon.

Around 16,184 individual claims have been approved to receive financial support from the business energy scheme, according to the most recent figures from Revenue. Around €26m has been paid out to successful applicants to date.

Tbess provides qualifying businesses with up to 40% of the increase in electricity or gas bills up to €10,000 per month, with this cap being increased to €30,000 in certain circumstances.

Wholesale and retail trade are the sectors of the economy that have received the most approved claims for this support.

Additional support

However, Mr Dillon said he is hearing many members of Retail Ireland, large and small, struggle to navigate the application process while high energy bills are coming through the door.

“Any way of simplifying it or providing additional support for people working through the application process will be enormously beneficial to retail businesses,” he said.

Retail Ireland, which is an arm of lobby group Ibec, has welcomed the scheme which was introduced in the last Budget but has recommended changes be made to it to help retailers through the current volatile economic environment.

He said one of the recommendations is to significantly” increase the €30,000 cap.

“Retail businesses are often very stretched. They’re trying to deal with a whole range of legislative developments and new labour market rules, and at the same time they’ve gone through a very intense trading period at Christmas,” said Mr Dillon.

Inflation

The annual pace of Irish inflation eased to 7.7% in January as energy price pressures relaxed due to a mild winter.

This rate has fallen significantly below the annual inflation rate of 9.2% in the euro area, which was recorded in December.

However, the battle against inflation rages on as the European Central Bank prepares to hike interest rates for a sixth time next month to try and get it under control.

Also, energy prices are set to continue fluctuating while Russia pursues its war against Ukraine, which is nearing its one-year anniversary.