Irish Fed members have welcomed the government’s offer of up to €10,000 per month to help with energy bills, but fears remain stores may be forced to close.

Under the Temporary Business Energy Support Scheme, qualifying businesses will be able to claim up to 40% of the increase in their bills.

Announcing the scheme in the 2023 budget, tánaiste and minister for enterprise, trade and employment Leo Varadkar said: “Businesses are worried heading into the winter. The cost of energy and of doing business is rising. Interest rates are going up. Consumer confidence is waning.

“This Budget is about putting more money in people’s pockets and reducing the bills that people and businesses have to pay.”

The scheme, which is set to run to “at least February 2023”, will be operated by the Revenue Commissioner and backdated to September 2022.

Government extends energy support criteria for businesses

While it is set to help small businesses, medium-sized and larger businesses can apply.

Republic of Ireland district president Martin Mulligan said the move was good news for many retailers. However, he feared that it would be too late for some, and that the qualification criteria may adversely affect others.

“We welcome help, but in order to qualify, you have to be 100% tax compliant. There will be many small traders who are struggling to keep up with their tax payments because of soaring costs and who are paying in instalments, and the worry is that help may not be available for them. Those people are in urgent need of help,” he said.

Mulligan added that The Fed in Ireland would like to see the appointment of an independent ombudsman to access claims.

“We’ve been calling for years for an ombudsman for independent businesses. So many people are just going to give up. The independent business needs protection and retailers need a body they can turn to,” he said.

Peter Steemers, owner of Steemers-O’Leary’s newsagents in County Wexford, also welcomed the scheme.

Government energy crisis support for retailers to be backdated

“Any help for retailers is welcome. People are struggling with bills that have doubled and tripled in cost as well as other trading expenses that have increased, such as insurance and employment costs.”

As well as the support scheme, Businesses in Ireland are also set to benefit from an EU-wide windfall tax on energy producers.

It was agreed after a deal was hammered out between EU member states last week.

Ireland is expected to raise between €1bn and €2bn from the tax. However, it is as yet unclear how that money will be spent.

In the same deal, EU ministers also agreed on a voluntary target to cut electricity use by 10% and a mandatory energy savings target of 5% during peak hours.

The approach contrasts with new UK prime minister Liz Truss’s plans. To date, the UK government has rejected a levy on fossil fuel producers’ profits, instead opting to borrow to fund a new Energy Bill Relief Scheme.

The scheme, announced last month, will provide a discount on wholesale gas and electricity prices for non-domestic customers.

Stores in the UK currently signing new fixed-priced contracts (FPCs), those who signed FPCs on or after 1 April and those on variable, flexible purchase or out-of-contract tariffs are all eligible for the Energy Bill Relief Scheme.

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