Energy costs ‘could be breaking point for small businesses’

A call for radical measures by the Government to support small and medium businesses this winter as they face escalating energy costs has been made by Ballybofey businessman and local councillor, Martin Harley.

The former Fine Gael general election candidate warned this week that an energy cost crisis is set to have massive knock-on impacts for businesses all over Donegal, particularly those that use multiple refrigeration units adding this will ultimately affect every household too.

He claims the businesses most affected are smaller, family-owned firms in retail, distribution, hospitality, manufacturing and food processing.

Cllr Harley says he is one of the thousands of small business owners across the country who will bear the brunt of the national energy crisis that risks driving them to a cost of living catastrophe within the year.

"I have been in contact with a number of local TDs and senators including former Minister for Education, Carrigart-man Joe McHugh and former Minister of State at the Department of Health until last month, Sligo-based Frank Feighan to warn that unless there is a rethink on the Temporary Business Energy Support Scheme (TBESS) there will be businesses going to the wall over the next three months," he claims.

The TBESS was introduced to support businesses with increases in their electricity or natural gas (energy) costs but Cllr Harley maintains it is far too complicated to be useful.

Your business can make a claim under the scheme if it is tax compliant
and carries on a Case I trade or Case II profession. This includes charities and approved sporting bodies that carry on certain activities and have experienced a significant increase of 50% or more in their electricity and/or natural gas average unit price.

Qualifying businesses can also claim 40% of the increases in their energy bills. The increase in energy bills must be between the ‘claim period’ and the ‘reference period’.

A claim period is a calendar month from September 2022 to February 2023.

"A lot of businesses are either not registering for it or say it's going to cost them a fortune for their accountant to do the paperwork attached to it. I think they need to make it something simple to help businesses through the next year."

He adds his electric bill for his Cheers Bar business has jumped from €1,500 to €3,400 for two months.

"Small businesses such as the family butcher shops for example use many fridges and freezers and these energy increases are going to cripple them. This needs to be addressed right away. It will be too late to bolt the gate when the horse has gone. Small businesses are at a crisis point.

"To be fair the Government was of great help during Covid but this is even bigger than the Covid problem. I don't think people realise what is ahead because businesses are holding on because of a busy Christmas but now they are going to be looking at their takings over the next few weeks and say this is not working. It's time for radical action right away," he added.