Irish SMEs welcome 1.25 billion euro energy support package

Ireland’s minister for public expenditure and reform Leo Varadkar and its minister for finance Paschal Donohoe have announced a new funding scheme to help small and medium enterprises (SMEs) in paying for increasing energy costs.

While full details on the new Temporary Business Energy Support Scheme (TBESS) are yet to be published, the Department of Enterprise Trade and Employment said it will cover payments from September 2022 and will run until at least February 2023, costing 1.25 billion euros.

It will support businesses that have seen up to 40 percent of an increase in electricity or gas bills at a capped 10,000 euros per month.

The scheme comes in compliance with the EU State Aid Temporary Crisis Framework and will need to be approved by the EU Commission before payments are made.

The budget will also cover a 200 million euro Ukraine Enterprise Crisis Scheme, to assist vulnerable businesses that have been affected by the war in Ukraine, and a 1.2 million euro state-backed Ukraine Credit Guarantee Scheme, supporting SMEs and primary products over a six-year term.

The new additions build on the government’s Growth and Sustainability Loan Scheme, which was set out to make up to 500 million euros in low-cost investment loans of up to 10 years, with a minimum of 30 percent of the lending volume targeted towards environmental and sustainable purposes.

In a release, tánaiste Varadkar said: “I know businesses are worried about the winter. The cost of energy and of doing business is rising. Interest rates are going up. Consumer confidence is waning.

“We understand the scale of this energy crisis and we are responding to that in Budget 2023, a true Cost of Living Budget. This Budget is about putting more money in people’s pockets and reducing the bills that people and businesses have to pay. You can rely on us to back business and jobs to ensure the strong economy required to improve the quality of your life.”