As announced in Budget 2023 the Department of Enterprise, Trade and Employment’s Budget package is designed to help businesses with escalating energy costs and to plan for the future.

Overall funding allocated to the Department of Enterprise, Trade and Employment in Budget 2023 has increased by €36 million, to €940 million.

While the schemes are currently in development, you’ll find more detail below about their eligibility criteria and how they will be administered. The schemes will be publicised when they are open for applications in the coming months.

Businesses may be eligible for more than one scheme.

The first of these is the €1.25 billion Temporary Business Energy Support Scheme (TBESS), providing qualifying businesses with up to 40% of the increase in electricity or gas bills up to €10,000 per month. It will help small businesses most, but also medium and larger businesses. It will be administered by the Revenue Commissioners. Subject to State Aid approval, once legislated for, it is expected that the scheme will be backdated to September 2022 and will run until February 2023. It will be available to tax compliant businesses that are chargeable to tax under Case 1 of Schedule D. This means that, for example, hotels, retail shops, pubs, restaurants, cinemas, entertainment venues, food and drinks suppliers, farmers, etc would be within the scope of the scheme where they meet the eligibility criteria. The scheme will be operated on a self-assessment basis.

It is aimed at businesses whose average unit gas or electricity price has risen by over 50% compared with their average unit gas or electricity price in 2021. The credit will be calculated as 40% of the excess of the 2022 bill over the 2021 bill, capped at €10,000 per trade per month. Overall caps per undertaking will also apply as set out in the EU Temporary Crisis Framework.

The second is a €200 million targeted Ukraine Enterprise Crisis Scheme to assist viable but vulnerable businesses in the manufacturing and internationally traded services sectors which are suffering the broader effects of the war in Ukraine as well as increasing energy costs. It will have 2 measures.

Measure 1 will provide aid in the form of direct grants, repayable advances, equity and/or loan notes aid to ensure liquidity and access to finance for enterprises that face economic challenges as a result of increase input costs and supply chain difficulties, and which have suffered a 15% decrease in operating surplus in 2022 compared to 2021. The aid will be assessed on the basis of a Business Sustainment Project Plan which should also outline measures undertaken or planned to improve energy efficiency. The overall aid under this measure will not exceed €500,000 and will typically be provided on a co-funded basis, the minimum aid award is €20,000.

Measure 2 will provide aid for additional costs due to exceptionally severe increases in natural gas and electricity prices experienced by energy-intensive businesses (with spend greater than 3% of turnover on energy) which have suffered a 15% decrease in operating surplus in 2022 compared to 2021, and doubled per unit cost of gas/electricity. The aid will be in the form of direct grants and the overall aid per undertaking will not exceed 30% of the eligible costs up to a maximum of €2 million, the minimum aid award is €20,000. Applicants will be required to demonstrate measures undertaken or planned to improve energy efficiency.

It will be administered through Enterprise Ireland, IDA and Údarás na Gaeltachta.

To assist the wider business sector with liquidity and to invest in energy efficiency, a €1.2 billion State-backed Ukraine Credit Guarantee Scheme will be introduced. This will provide low-cost working capital to SMEs, primary producers and small mid-caps (businesses with fewer than 500 employees) of up to €1 million, on a six-year term, with no collateral required for loans up to €250,000. The scheme will be operated by the Strategic Banking Corporation of Ireland (SBCI) and loans will be provided by finance providers from the private sector including banks, non-banks and credit unions.

The Growth and Sustainability Loan Scheme (GSLS) will make up to €500 million in low-cost investment loans of up to 10 years available to SMEs, including farmers and fishers and small mid-caps, with no collateral required for loans up to €500,000. A minimum of 30% of the lending volume will be targeted towards environmental sustainability. 70% of lending will be for strategic investments with a view to increasing productivity and competitiveness and thus underpinning future business sustainability and growth. The scheme will be operated by the SBCI and participating finance providers. It is anticipated that it will be launched in the market in the first half of 2023.

In 2023 Budget there is also additional €4 million in funding to the Local Enterprise Office network to include a new grant for microenterprises for energy efficiency. The Small Firms Investment in Energy Efficiency Scheme will provide a grant to companies to encourage capital investment in projects to reduce carbon emissions.

The scheme will follow on from the LEO Green for Micro Scheme which currently provides advice and technical support to firms on energy efficiency and reducing their carbon footprint.

The new scheme will open in 2023 and will be administered by the Local Enterprise Offices.

There are a number of existing government supports and resources available to help businesses mitigate the impact of energy price rises and become more energy efficient - whether you are beginning your journey to sustainability or at an advanced stage. To mention just few of them.

Climate Toolkit 4 Business

Climate Toolkit 4 Business allows SMEs to input some simple information to get an estimate of their carbon footprint. It will use this information to generate a personalised action plan and recommend those supports that are relevant to help each business reduce their carbon footprint and energy costs.

SEAI Energy Academy

The SEAI Energy Academy is a free, online, e-learning platform designed to help businesses increase their energy efficiency and reduce their energy related costs. The SEAI Energy Academy allows anyone to learn with short, interactive, animated modules. It is mobile friendly and offers flexible, self-paced learning with access available 24/7.

Energy audits

The Support Scheme for Energy Audits - SEAI offers a €2,000 voucher to SMEs to undertake a bespoke energy audit of their business. The SEAI energy audit is an important step for businesses that want to save money, save energy and enhance their brand.

The Climate Action Voucher is an €1,800 grant to engage consultants to develop an initial sustainability or circular economy action plan.

GreenPlus - Climate Planning Fund for Business

GreenPlus provides grant funding for 50% of training costs to align to international standards and frameworks and to develop a comprehensive climate change and sustainability plan.

Retail businesses can also find out more on the supports available to the sector at Retail and Locally Traded Enterprise.

For more information please also visit website below:

https://enterprise.gov.ie/en/what-we-do/supports-for-smes/energy-supports/

Energy supports for business in 2023

The Temporary Business Energy Support Scheme (TBESS)

Budget 2023