Businesses are calling for urgent reform of the Government's €1.2 billion energy support scheme, after new figures released today by Revenue showed €26m has so far been paid out under it.
Business organisations say the low take up is further evidence that the scheme is not fit for purpose due to overly tight criteria and a burdensome application process.
Announced in the budget, the Temporary Business Energy Support Scheme (TBESS) provides financial support to businesses who have seen the average unit price of their electricity and/or gas rise by at least 50% over the period between September of last year and February of this year.
Qualifying businesses can claim 40% of the increase in their energy bills.
Revenue opened its system for registrations at the end of November and accepted claims from the start of December.
But business groups say their members are telling them that the scheme is not working, a claim borne out in the latest Revenue figures.
22,642 firms have registered for the TBESS, with 16,184 claims totalling just €31.5m approved to date.
A just completed survey of over 300 businesses conducted by Kildare Chamber of Commerce, found 76% of respondents were not able to avail of the TBESS.
This is despite 59% reporting that their energy bills had increased by 40% or more over the past year.
30% blamed the complexity of the application process for them not using the scheme, a similar percentage said their energy costs had not increased by the required amount, while 20% said their business fell outside the scope of TBESS.
But 43% said they were very concerned about rising costs and nearly two thirds expressed the view that the supports will not be enough to cushion against rising costs.
'We haven't qualified for it'
VEI Global, an IT services firm based in Naas, employs over 40 people.
Like most companies, it has seen its energy bills leap in recent months, yet it doesn't qualify for the scheme.
"We haven't qualified for it as yet," said Lloyd O'Rourke, commercial director of VEI Global.
"You have to be over 50% and we are at 40% at the moment. The way it is going over the next few months we will probably hit 50%. But at this stage, over the last 12 months, we aren't at 50% yet."
Some businesses that are not on the mains gas network, and instead rely on oil for their heating, also appear to be disadvantaged.
"We are here in a public house that has a mix of energies," said publican Joe Sheridan of Walsh's Bar in Dunmore, Co Galway.
"And none of those include mains gas. So the application for this premises cannot allow for 90% of its energy need.
Kildare Chamber of Commerce has joined the growing chorus seeking reform of the scheme.
"We are calling on the Government that they need to expand this scheme, the net as such to make sure that every business can qualify for it and also expand it to the end of the year," said Allan Shine, the CEO of the organisation.
"It is very narrow in its focus currently."
In a statement the Department of Finance acknowledged that the scheme has to date seen a relatively lower level of uptake than would have been initially expected.
"That being said, it is important to note that the scheme it only opened for claims in early December," it said.
"In addition, depending on the billing cycles which apply businesses may be waiting for relevant bills for the period or part thereof, to be issued in order that they can make a claim," it said.
It added that Revenue has reported increased activity on its TBESS claims portal in the past weeks in addition to a significant increase in the volume of phone calls to their dedicated TBESS helpline.
"As a result, Revenue is allowing businesses additional time to submit their claims for September 2022, which should have been submitted by 31 January 2023," it said.
The spokesperson said the Government will make a decision in the coming weeks along with other cost of living measures due to expire at the end of February.
