The criteria to qualify for a scheme to help businesses cope with crippling energy costs has been widened following poor take-up.
The Temporary Business Energy Support Scheme (TBESS) was costed at €1.25 billion when it was announced in Budget 2023 after energy costs soared following the Russian invasion of Ukraine.
However, only a fraction of that has been used. The Department of Finance said 34,227 claims for the scheme had been approved as of April 13th to a total value of €74.9 million. The scheme has been under review by the Government as a result.
Minister for Finance Michael McGrath said on Monday the State had received approval from the European Commission of its State aid application for enhancements to the scheme.
The enhancements provide for a further extension of the scheme to May 31st.
They also provide for a reduction in the energy unit cost threshold from 50 per cent to 30 per cent required to qualify for the scheme, and an increase in the level of relief available from 40 per cent to 50 per cent in respect of claims since March 1st.
“I am pleased to note that the European Commission has approved the enhancements to TBESS brought forward in Finance Bill 2023,” said Mr McGrath.
“These changes, in particular the lower entry threshold for the scheme, which is backdated to September 2022, will ensure that additional businesses can benefit from this vital support, and I encourage businesses who have not already done so to register for and submit claims under the scheme.”
The TBESS claim portal can be accessed via the eRepayments system on Revenue’s online service.
The facility to make claims in relation to energy bills covering the period from March 1st to April 30th opened on Monday.
Businesses who have already registered should update their reference period details for March and April 2022 in advance of submitting a claim for the extended periods of March and April 2023.
Claims relating to these periods will automatically be assessed based on the reduced 30 per cent energy unit cost threshold, and will be paid based on the increased level of 50 per cent of the increase in the bill.
The increased monthly cap of €15,000, subject to an overall monthly cap of €45,000, will also be automatically applied to these claims.
The facility to make claims in relation to energy bills covering the claim period from May 1st to May 31st will open when the Finance Bill is passed. Revenue will issue a further update when the claim portal opens for this period.
The reduction in the eligibility threshold from 50 per cent to 30 per cent applies from September 1st, 2022.
Therefore, businesses who did not qualify because their unit cost threshold increased in the range of 30-50 per cent are now eligible to register and submit claims.
