Temporary Business Energy Support Scheme (TBESS)
Revenue have this week issued Guidance Notes on the above. Many of the terms & conditions of this scheme were already outlined by us to you on our Finance Bill circular earlier this month.
A link to the very comprehensive Guidance Notes is here
Some of the main features of TBESS are:
|Scheme is open to both trades & professions||Paragraph 2.1.2.|
|Certain charities may also qualify||Paragraph 2.1.4.|
|Certain sporting bodies can also qualify||Paragraph 2.1.5.|
|For charities & sporting bodies, costs of admin – type locations are not allowed||Paragraph 2.1.4.|
|Claim is by reference to each qualifying business that is carried on||Paragraph 2.2.|
|Factors to consider in determining whether a business has more than one eligible business or qualifying business||Paragraph 2.3.|
|The claim is 40% of “eligible costs”||Paragraph 4.1.|
|Claims must be made within 4 months||Paragraph 5.1.|
|Can make a claim as bills are received||Paragraph 5.1.|
|The cap is €10,000 per eligible business/qualifying business||Paragraph 5.2.|
|Cap of €30,000 where multiple locations||Paragraph 5.2.|
|Where multiple MPRN’s||Paragraph 5.3.|
|Where adjacent MPRN’s||Paragraph 5.3.|
|Where one energy account and multiple qualifying businesses||Paragraph 5.4.|
|Overall “TCF” cap of €500,000 per undertaking||Paragraph 5.5.|
|Definition of “undertaking”||Paragraph 5.5.2.|
|Overall TCF cap of €62,000/€75,000 for businesses in fishing & agriculture sectors||Paragraph 5.5.|
|Declaration regarding Carbon Footprint exercise (“climate toolkit”)||Paragraph 6.3.|
|Provision for withdrawal of relief||Paragraph 7|
|Provision for penalties for abuse of scheme||Paragraph 7|
|Tax treatment of TBESS||Paragraph 8|
The TBESS has been introduced to assist businesses over the coming months. Eligible businesses will be able to reclaim 40% of the year-on-year increase in their energy bills up to certain caps.
The scheme operates by reference to bills for the metered supply of electricity and natural gas through electricity accounts or gas connections which are identified by their own Meter Point Reference Number (MPRN) or Gas Point Reference Number (GPRN).
The scheme covers electricity and natural gas bills issued for the period from 1st September 2022 to 31st December 2022. The minister has the ability to extend the scheme up to 30th April 2023. The scheme will be administered by the Revenue Commissioners.
Who can Qualify?
To qualify for the TBESS, a person (including an individual, partnership or company) must meet all of the following conditions:
- The person must carry on a trade or profession (Case I or Case II) (i.e., the person must be an ‘eligible business’). Revenue approved charities who carry on a trade and Revenue approved sporting bodies who carry on a trade may also qualify.
- The business must be able to demonstrate that the average unit price for electricity or natural gas on the relevant bill has increased by 50% or more as compared to the average unit price in the reference period. The reference period is generally 12 months prior to the month to which the relevant bill relates. If the business was not issued with an electricity or gas bill in the reference period (for example, if the business did not exist or did not hold an electricity account in the reference period), a deemed monthly reference unit price is to be used. The deemed monthly reference unit price rates will be made available by the Sustainable Energy Authority of Ireland and will be published in Revenue
- For each monthly claim period the business must:
- Be tax
- Be eligible to obtain a tax clearance certificate from the Revenue
- Have carried on a trade or profession and intend to continue to do so following the end of the claim
- Have registered for the TBESS through the Revenue Online System (ROS); and
- In respect of any claim for a TBESS payment, the business must make the claim though ROS and make a declaration that the business satisfies the conditions outlined
A qualifying business is entitled to make a claim for payment of 40% of the increased cost in the energy or natural gas bill, whichever is applicable. The maximum monthly payment is capped at €10,000.
Where a qualifying business has more than one electricity or gas connection at different business locations (which may not be adjacent to each other), it may be eligible for an increased cap of €10,000 per electricity account, which is available as regards both electricity and natural gas costs, up to a maximum amount of €30,000 per claim period.
The aggregate amount of TBESS payments that may be claimed in respect of the four-month period from 1st September 2022 to 31st December 2022, when taken together with any other amount claimed in respect of aid granted under the Temporary Crises Framework, must not exceed €500,000.
This €500,000 limit applies for a ‘single undertaking’ which requires consideration of certain related entities, such as subsidiaries. This €500,000 limit is reduced to €62,000 for persons carrying on a farming trade and to €75,000 where the person is engaged in the production, processing and marketing of fishery and aquaculture products.
How to Claim
The claim must be made through ROS, no later than four months from the last day of the month to which the claim relates.
There are measures to ensure that deductions for energy costs are limited to the true cost of the energy bills, net of the TBESS payment (i.e., the receipt of the payment is effectively taxable).
If a claim for a TBESS payment is made and it transpires that the claim was not permitted or the amount claimed exceeds the amount the person was entitled to claim, the business is required to repay the amount to Revenue, together with interest. Undue delays in repayments of invalid claims by businesses attract further monetary sanction.
Details of a claimant business, including name, address and total amount of TBESS payments claimed will be published on Revenue’s website.
We trust this is clear. Please call your usual PSC contact should you require any further information.