TBESS won’t pay out for firms still stuck with huge energy bills

Claims are being rejected because to qualify, company energy costs must have increased by 30pc or more against the same month last year

Enterprise, Trade and Employment Minister Simon Coveney. Photo: Brian Lawless/PA

Donal O'Donovan

Thousands of businesses across the country are no longer eligible for the Government’s key energy support scheme, TBESS, because bill increases since 2022 have been low even though the cost of utilities remains near all time highs.

The Temporary Business Energy Support Scheme (TBESS) was launched in 2022 with a promise of €1.3bn of financial aid to businesses reeling from the impact of Russia’s invasion of Ukraine on energy costs.

But only a fraction of that money has ever been drawn down. According to Revenue 30,475 businesses have registered for TBESS and 56,126 claims have been approved to date with a value of €129.04m. It means 90pc of the notionally available funds have not been used.

Businesses can be entitled to a maximum of €45,000 per month under the scheme, though for most it would top out at €15,000.

However, the scheme has been beset by controversies and business owners now say applications are being rejected for relief on energy bills that remain at or close to all time highs.

That includes businesses that were eligible for help as recently as spring of this year.

Businesses can claim relief on bills between September 2022 and the end of July 2023.

Claims are now being rejected for the most recent months however because to qualify a firm’s energy costs must have increased by 30pc or more in the relevant bill period assessed against the same month last year, not pre-Ukraine war norms.

Bills for the summer of 2023 are high by historic standards but not significantly higher than the same period last year.

Energy costs for business peaked in the summer and autumn of 2022, in the wake of the invasion and the sabotage of the Nord Stream 2 gas pipeline from Russia to Western Europe. At the time energy prices spiked dramatically amid fears Europe was facing a winter of possible fuel shortages. As those fears have eased energy prices have fallen back, but to still elevated levels that business owners say continue to present a major challenge.

The scheme is operated by Revenue but the rules, including eligibility criteria are set out by the Department of Enterprise, headed by Enterprise Minister Simon Coveney.

Eligibility criteria have previously been changed following criticism.

Initially many professional services businesses, such as accountants, solicitors, doctors and dentists, were excluded from the scheme – an oversight that had to be corrected in the Finance Bill last year.

Policy makers also dropped the original bill increase threshold of 50pc to 30pc and increasing the eligibility period and upper payment bounds.