Firms hit hardest by rising energy costs will be in line for State financial supports over winter, with the Government seeking European Commission state aid approval for two special support programmes. The schemes will allow the State to help businesses severely hit by significant increases in natural gas and electricity prices and other costs arising from the war in Ukraine.
Two separate schemes are under consideration, including a grant scheme which has been submitted to the European Commission for approval and a new loan scheme that will require legislation. Tánaiste Leo Varadkar is working with banks and business groups on the loan programme, plans for which will be submitted to the European Commission shortly.
The schemes reflect government fears that further restrictions on gas supplies from Russia will send gas prices higher over the winter. Prices on the wholesale market have risen sharply in recent weeks due to these fears and are now approaching levels reached in the immediate aftermath of the invasion. A number of senior Ministers have recently referred to the possibility of a difficult winter, particularly if Russian gas supplies to the EU are cut completely.
[ Ireland not relying on Russia for energy, says Gas Networks IrelandOpens in new window ]
[ Gas pressure - why the Government is warning about a difficult winterOpens in new window ]
The schemes are likely to be limited in scale and targeted at companies worst hit, including high energy users in the manufacturing sector. Any company that avails of the aid will be expected to have a plan for managing energy use and becoming more energy efficient.
Buying a new car in 2025? These are the best ways to finance it
The best crime fiction of 2024: Robert Harris, Jane Casey, Joe Thomas, Kellye Garrett, Stuart Neville and many more
We’re heading for the second biggest fiscal disaster in the history of the State
Housing in Ireland is among the most expensive and most affordable in the EU. How does that happen?
Mr Varadkar said many businesses were worried about the upcoming winter and the Government planned to help them through this crisis.
“We are looking at how we can do more over the winter. Obviously things are still extremely uncertain but we want to make sure we are prepared now. It is still being finalised but we are looking at how we can help our higher-energy users — our manufacturers especially — with high energy costs and the additional costs due to the war.” He added that plans would be finalised over the coming months in time for winter.
The commission has already cleared schemes for a number of other countries, including France and Germany, as well as a number of other smaller states, so the Irish programme is seen as likely to get clearance, subject to similar terms and limits.
