TBESS was announced as part of Budget 2023 to help businesses meet rising energy costs which occurred as a result of the invasion of Ukraine by Russia. TBESS is a support available to tax compliant businesses experiencing increases in electricity or natural gas costs. The scheme operates on a self-assessment basis, is administered by the Revenue Commissioners and is funded by the Department of Enterprise, Trade and Employment.
Enhancements to the scheme were brought forward in Finance Bill 2023 as part of the new cost-of-living measures announced by the Government in February. These enhancements, which were approved by the European Commission, include:
- extending the scheme to 31 May 2023, with the option to further extend the scheme by Ministerial Order to not later than 31 July 2023,
- reducing, with effect from 1 September 2022, the energy cost threshold for qualification for the scheme from a 50% increase in electricity or gas costs to a 30% increase,
- increasing, from 1 March 2023, the level of relief from 40% to 50% of eligible costs
The time limit for making claims under the scheme has also been extended.
The enhancement for which State aid approval was received are in addition to amendments made by the Minister in February of this year when he exercised the power to increase the monthly limit on aid under the scheme to €15,000 per qualifying business in relation to a trade or profession, subject to an overall cap of €45,000 in cases where a business is carried on from more than one location. These changes took effect from 1 March 2023.
Speaking today, Minister McGrath said:
“I am pleased to note that the European Commission has approved the enhancements to TBESS brought forward in Finance Bill 2023. 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.”
As of 13 April, 27,763 businesses have registered for the scheme. Revenue has approved 34,227 claims to a value of €74.86 million.
