Following representation and in recognition of ongoing challenges, the Temporary Business Energy Support Scheme (TBESS) will be extended to 31 May 2023 and enhanced. There will also be a new grant for businesses using LPG or kerosene. In addition, the temporary reduction in VAT on gas and electricity to 9 percent will be extended to 31 October 2023. The temporary reduction in VAT on Tourism and Hospitality will be extended to 31 August 2023.
The TBESS threshold for qualification will be reduced from a 50 percent increase in electricity or gas costs to 30 percent increase and will apply retrospectively from 1 September 2022. From 1 March, the level of relief will be increased from 40 percent to 50 percent of eligible costs, subject to a monthly limit, which will also be increased from this date, to €15,000 per month per trade or profession, subject to an overall cap of €45,000 where the business is carried on from more than one location. These changes are subject to State Aid approval from the European Commission.
Commenting on the measure the Taoiseach, Leo Varadkar, said:
“For business, we’ve made it easier to apply for TBESS to help with electricity and gas bills, and the level of relief has been increased to 50 percent of the cost of eligible energy bills. There will also be a new grant for businesses using LPG or kerosene. The special reduced 9 percent VAT rate for hospitality businesses will be extended from March to August.”
Further information is available here.