Greater Government support is needed for small and medium-sized businesses here to help them avoid an energy crisis this winter, industry representatives have said.
Consumers are also facing rising prices if the feared hikes come to pass, with companies expected to pass the increased costs on.
The Irish SME Association (Isme) said measures announced for business owners will not be sufficient, with companies facing cost increases of 100 per cent or more in monthly bills as the temporary reduction in VAT in introduced by the Government expires on October 31st.
The lobby group is calling for the Government to intervene, pointing to supports introduced by other European countries. The German government promising to cut VAT on gas by 63 per cent and Greece introducing a €30 per MWh subsidy for businesses.
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“The inevitable price inflation from energy cost increases can only be moderated if there is Government intervention to mitigate the impacts on small business,” said Neil McDonnell, chief executive of ISME.
“We will need a scheme of direct supports for small business, similar to the Covid-19 Restrictions Support Scheme (CRSS) during the pandemic. The cost of Government inaction will be far higher in terms of business closure, and we also need to see an explicit Government strategy to avert another energy crisis in the winter of 2023.”
Isme is currently surveying its members on potential purchasing groups for energy, with early signs that there is significant interest in such a scheme.
“SMEs are only starting to get back on their feet after Covid, most do not have the financial safety net to cope with the current energy increases,” said Finbarr Filan, member of ISME’s national council and a small business owner.
“Now is the time for the Government to support those businesses, to ensure they remain in business, keep people in jobs and provide service to the consumers of the nation at an affordable cost for all.”
