Businesses to receive support for soaring energy bills
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Budget 2023 has confirmed support for businesses facing severe increases in energy bills.
Minister for Finance Paschal Donohoe said specific measures were needed to support business and enterprises through these "exceptionally challenging times".
The Temporary Business Energy Support Scheme (TBESS) will be operated by the Revenue Commissioners.
The scheme will operate by comparing the average unit price for a business's energy utility in 2022 with the average unit price in the same period of last year.
Companies can only claim for increases above 50% of last year. Once that threshold is passed, businesses can claim for 40% of the increased amount.
A monthly cap of €10,000 per trade will apply and an overall cap will apply on the total amount which a business can claim.
The TBESS scheme will be open to businesses that carry on a Case 1 trade, who are tax compliant and have experienced a significant increase in their natural gas and electricity costs.
The scheme will need to be approved by the EU Commission in the advance of making payments.
Speaking at a press conference following the Budget announcement, the Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar said the TBESS will cost €1.2bn and will run until 2023.
Employers are expected to benefit from this scheme by November with the first round of payments.
He said that the main cost pressure on small businesses was the high rate of utility bills and rejected concerns by some businesses that the latest minimum wage increase would lead to a reduction in staff.
“The petitions that it would result in reductions in employment have not come to pass,” he said.
“Wages are not rising as fast as prices,” said Mr Varadkar. He added that the latest raise would not create a wage spiral that would embed inflation into the economy.
“Wage increases are happening generally, regardless of what government does,” he said.
Ireland currently has one of the highest minimum wages in the world and the highest level of employment on record. Some small businesses, like the Stuffed Olive café in Bantry, still have concerns about how they are going to pay workers with the new increase. “My staff definitely deserved it. It’s just about where do I get this money,” said manager Sarah O’Shea.