Figures show 'appallingly low take-up' of State's energy support scheme

The most recent update shows that just €72.45 million has been approved to give to businesses, with around €64 million paid out.

The uptake of the temporary business energy support scheme has been called "appallingly low" as the European Union signed off on fresh improvements.

The Temporary Business Energy Support Scheme (TBESS) was approved in Budget 2023 in September with €1.25bn budgeted to assist businesses with up to 40% of the increase in electricity or gas bills. Under the initial terms of the scheme a business can make a claim if it is tax compliant, carries on a Case I trade or Case II profession, and experienced a significant increase of 50% or more in its electricity and/or natural gas average unit price.

However, despite its initial budget, the most recent update shows that just €72.45 million has been approved to give to businesses, with around €64 million paid out.

Audit

An audit was carried out on the scheme earlier this year, with adjustments announced in last month's cost-of-living package. Under those enhancements, it will be reduced from a 50% increase in gas and electricity costs to a 30% increase, which will apply to costs incurred from September 1 last year.

In addition, from March, the level of relief rose from 40% to 50% of eligible costs, subject to a monthly limit of €15,000 a month. The Department of Finance told The Irish Examiner that the improvements to the scheme had been given the green light by Brussels.

A spokesperson said: "The Department of Finance has been notified in recent days that the European Commission has approved the further enhancements to TBESS under the State Aid Temporary Crisis and Transition Framework. Finance Bill 2023 is progressing through the Oireachtas and passed Dáil Committee Stage before Easter.

"Qualifying businesses can continue to make claims for the September 2022 to February 2023 claim periods and now that State aid approval has been received Revenue will shortly update its website and the TBESS guidelines and advise businesses when they can make claims for the March 2023 claim period onwards.

"It is important to note that Revenue will automatically reassess claims made by businesses for periods from September 2022 onwards who did not pass the 50% energy costs threshold meaning that such businesses do not need to amend or resubmit claims previously made. In the meantime, other eligible businesses can continue to register for the TBESS as normal."

'Appallingly low take-up'

Labour's Finance spokesperson Ged Nash said the original scheme had been "drawn up on the back of a cigarette packet".

"We've been dealing with a lot businesses in Louth who simply wouldn't have met the initial criteria. To be fair to the Government, the increase in support and access should benefit some of them.

"We got a sense that the scheme had been dreamed up initially on the back of a cigarette packet and there wasn't a massive amount of consultation. And the proof of that pudding is in the eating in the appallingly low take-up.

"I would appeal to businesses who think that they will qualify to apply as soon as possible."