COST OF A GIANT €600 electricity bill credits vow Support for families & business
■ ■
BUDGET 2023 has been framed in the shadow of the cost of living and energy crises.
So it’s no surprise up to €4.1 billion has been set aside to tackle the two big issues that will affect households and businesses right across the country this winter.
Finance Minister Paschal Donohoe said the spending review is, and must be, a “cost-of-living budget”, focused on helping individuals, families and businesses to deal with rising prices.
Public Expenditure Minister Michael McGrath said the household electricity credit will total €600 and will be paid in three instalments of €200.
Instalments
The first will be made before Christmas, with two further instalments in the New Year.
Businesses are also set to get help with their rising electricity and gas bills, with the introduction of a Temporary Business Energy Support Scheme over the winter months.
Mr Donohoe said the scheme will be open to tax-compliant firms who have experienced a significant increase in their natural gas and electricity costs.
It will be administered by the Revenue Commissioners and will operate on a self-assessment basis.
He added businesses will be required to register for the scheme and to make claims within the required time limits.
Explaining how the scheme works, Mr Donohoe said it will compare the average unit price for the relevant bill period in 2022 with the average unit price in the corresponding reference period for last year.
If the increase in average unit price is more than 50 per cent, then the threshold would be passed and the business would be eligible for support under the scheme.
Once eligibility criteria are met the support will be calculated on the basis of 40 per cent of the amount of the increase in the bill amount.
A monthly cap of €10,000 per trade will apply and an overall cap will apply on the total amount which a business can claim.
Mr Donohoe said: “This is a significant intervention by the Government in the Irish economy to protect employment.
“This support scheme forms a large part of our one-off package.
“We must weaken the ability of a shock to income becoming a loss of jobs.
“This new policy will help employers with their rising bills, and help to save their businesses.” Meanwhile, motorists should see a bit more of easing in prices at the petrol and diesel pumps as a result of the Budget.
The Government announced a cut on excise duty on fuel has been extended to February 28, 2023, which ensures prices shouldn’t be rising astronomically as they did in the first six months of the year. The excise reduction translates to 21c per litre of petrol and 16c per litre of diesel.
Tax
While a carbon tax has been introduced, which would raise prices by 2c per litre — this has been offset by a cut to the National Oil Reserves Agency levy, meaning prices will not go up at the pumps.
Reacting to the measures, the Irish Tourism Industry Confederation has called for the Temporary Business Energy Support Scheme to be extended beyond February next year. It also called for “more generous” supports for high-energy business users.
ITIC chairwoman Elaina Fitzgerald Kane said: “Tourism and hos