What You Need to Know about the TBESS Scheme Extension

The Temporary Business Energy Support Scheme (TBESS) has undergone some changes since its initial launch. Originally planned to operate from September 2022 to February 2023, the TBESS scheme has been extended to provide additional assistance to eligible businesses. The new end date of the scheme is now 31 July 2023.

A claim under the scheme can now be made up until 30 September 2023, in respect of any month over the period from September 2022 to July 2023.

This extension of the TBESS is a significant development that allows businesses more time to benefit from the financial support offered by the scheme. The scheme aims to help small and medium-sized businesses that are struggling to pay their energy bills.

ELIGIBILITY CRITERIA FOR THE TBESS SCHEME

Under the extended TBESS, eligible businesses can receive a grant to assist with their energy bill payments. The monthly limit on payments for claims periods from 1 March 2023 onwards has increased from €10,000 to €15,000 for businesses operating from a single location and €30,000 to €45,000 for businesses operating across multiple locations.

To be eligible for support under the TBESS, businesses must meet the following criteria:

• Considered a small or medium-sized enterprise (SME), with fewer than 250 employees.
• Annual turnover below £43 million.
• Possess a supply contract or tenancy agreement in the business’s name.

To qualify for the scheme, a business must be able to demonstrate the following:

• Their average unit price for electricity or natural gas on the relevant bill has increased by 30% or more as compared to the average unit price in the month that is 12 months prior to the claim period.
• The business must also be eligible for a tax clearance certificate throughout the claim period.

A qualifying business is entitled to claim a Temporary Business Energy Payment (TBEP) amounting to 40% of its eligible cost (subject to a cap for each monthly claim period) for September 2022 to February 2023 and 50% of its eligible cost from March 2023 to July 2023. The eligible cost amount in relation to an electricity or natural gas bill is calculated as the increase between the bill amount on that electricity or natural gas bill as compared to a bill amount in the month that is 12 months prior to the claim period.

The scheme is administered by the Revenue, and businesses can submit claims on ROS.

SUPPORT AVAILABLE THROUGH THE SCHEME EXTENSION

To apply for support under the extended TBESS scheme, businesses will need to follow the application process outlined by Revenue. An eligible business must register for TBESS on ROS and complete a claim in respect of each month. It is essential to provide accurate information about your business, energy bills, and financial situation to ensure a smooth application process.

By extending the TBESS until 31 July 2023, the Irish Government is demonstrating its commitment to supporting businesses during the ongoing challenges posed by soaring inflation and energy prices as a result of the situation in Ukraine.  This extension gives businesses more time to benefit from the scheme and helps alleviate some of the financial pressures they may be facing.

If you or your business are facing financial difficulty, FPM offer a partner-led service supporting financially distressed business owners of all sizes, as well as individuals. Recognised as an Irish and UK market leader in cross-border rescue and recovery, the team are on hand to work with you to find the best solution. Contact us today for a free consultation.

It is recommended that eligible businesses take advantage of this extended opportunity and apply for support through the TBESS if they are experiencing difficulties in paying their energy bills. This scheme can provide a much-needed boost to help businesses stay afloat and navigate these uncertain times.

If you have any questions in relation to the above, or require assistance registering or claiming from the TBESS Scheme, please contact Caroline Murphy or a member of our cross-border tax team.