RGDATA welcomes reforms and extension of TBESS
Total monthly amount a single business can claim against electricity and fuel costs each month has increased from €10,000 to €15,000
2 March 2023
Independent retailers’ association RGDATA has welcomed the government’s announcement to extend the Temporary Business Energy Support Scheme (TBESS), and increase the total monthly amount a single business can claim against electricity and fuel costs each month from €10,000 to €15,000, as well as extending the scheme until the end of May.
The scheme will be subject to an overall cap of €45,000 in cases where a business is carried on from more than one location.
Minister for Finance Michael McGrath has also proposed to make a number of further amendments to the scheme. These changes will require State aid approval and subject to receiving that approval, will be provided for in the forthcoming Finance Bill. The additional changes announced are as follows:
- the Scheme will be extended, to 31 May 2023
- the threshold for qualification will be reduced from a 50% increase in electricity or gas costs to 30% increase (to apply retrospectively from 1 September 2022)
- from 1 March 2023 the level of relief will increase from 40% to 50% of eligible costs
Pending implementation of these changes, claims can continue to be made under the current scheme.
In particular, RGDATA welcomed the reduction in the amount that companies will have to show their bills increased by, from 50% to 30%, and that this is being applied retrospectively to the beginning of the scheme.
The association has urged members to review their energy consumption and apply for the scheme here.
In the coming weeks, the Minister will bring forward a Finance Bill to give full legal effect to two new taxation measures which were also announced.
A Financial Resolution was provided for the extension of the temporary reduction in VAT on gas and electricity, from 13.5% to 9%, to 31 October 2023.
A second Resolution provided for the extension of the temporary reduction in VAT on Tourism and Hospitality, from 13.5% to 9%, to 31 August 2023.
With regard to fuel excise, the current VAT inclusive per litre reductions of 21 cent in respect of petrol; 16 cent in respect of diesel; and 5.4 cent in respect of Marked Gas Oil were due to expire on 28 February. The Financial Resolution extended these reductions to 31 May 2023, and provided for an incremental restoration to full rates by 31 October 2023 as follows:
- 1 June – rates will increase by 6 cent for petrol, 5 cent for diesel and 1 cent on MGO (per litre)
- 1 September – rates will increase by 7 cent for petrol, 5 cent for diesel, and 1 cent for MGO (per litre)
- 31 October – rates will be fully restored with an increase of 8 cent for petrol, 6 cent for diesel and 3.4 cent for MGO (per litre)