Temporary Business Energy Support Scheme (TBESS); Key Features, Eligibility Criteria, and More

Businesses affected by the unusual rise in energy prices brought on by the current global scenario will get assistance from the Temporary Business Energy Support Scheme (TBESS). The program, which will be run by Revenue, offers eligible businesses a cash incentive. Businesses that are engaged in a trade or profession and whose profits are subject to tax under Case I or Case II of Schedule D and have seen a large increase in their electricity and natural gas expenses are the target market for TBESS.

temporary business energy support scheme ireland

What is the Temporary Business Energy Support Scheme in Ireland?

Businesses will receive assistance with their electricity or natural gas (energy) expenditures over the winter thanks to the Temporary Business Energy Support Scheme (TBESS). The program will be accessible to businesses that:

  • Are tax compliant and carry on a Case I trade or Case II profession. This also includes some charities and approved sporting bodies. More details to follow
  • Had/Have their average unit prices for natural gas and electricity significantly increased by at least 50% between the relevant bill period in 2022 and the similar reference period in 2021

What are the key features of the Temporary Business Energy Support Scheme?

  • The plan is to cover power and natural gas expenditures for the months of 1 September 2022 through 31 December 2022, or 28 February 2023 if the TCF’s expiration date is extended
  • Within this time frame, claims may be submitted in relation to each calendar month (referred to as a “claim period”)
  • Businesses should be able to submit claims through the Revenue Online Service (ROS) by the end of November 2022. The first claim period for which a claim can be filed is September 2022.
  • Through electricity accounts or gas connections identifiable by their own Meter Point Reference Number (MPRN) or Gas Point Reference Number, the scheme runs in accordance with bills for the metered supply of energy and natural gas (GPRN).

Who is eligible to make a claim under the TBESS?

  • If a company, self-employed person, or partnership engages in a trade or profession, the profits of which are subject to tax under Case I or Case II of Schedule D pursuant to section 18(2) of the Taxes Consolidation Act of 1997, the business is deemed to be an “eligible business” and falls under the purview of the TBESS (TCA)
  • The system applies to sporting bodies that engage in activities that, absent an exemption under section 235 TCA, would be subject to tax under Case I or II of Schedule D
  • The scheme also applies to non-profit organizations that engage in activities that would be subject to taxation as trade revenue if it weren’t for an eligible tax exemption under Section 208 TCA
  • Collectively, these are known as “eligible businesses” for the purposes of the TBESS
  • Also note that the TBESS does not apply to public entities or firms that engage in passive activities, such as rental revenue that is subject to Case V taxation or investment income

How can you be eligible to make a claim under the TBESS?

To be eligible to make a claim under the TBESS in respect of an electricity bill or a business must be able to show that the average unit price of electricity or natural gas on the relevant bill has increased by 50% or more when compared to the average unit price of electricity or natural gas in a reference period in order to be eligible to submit a claim under the TBESS for an electricity bill or a natural gas bill. The eligible business is a “qualifying business” once it meets a number of other requirements and has over the energy expenses threshold in regard to a certain electricity or natural gas bill.

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