Minister Damien English confirmed the move on a visit to the city today.
The scheme was originally available to 'Category 1' businesses such as those in the hospitality sector and retail but was not extended to businesses such as dentists, accountants, and GP surgeries.
Businesses must prove that their energy costs have increased by 50% compared to the same period last year to avail of the scheme, which offers up to 40% of the increase back, up to €10,000.
Public Expenditure Minister Michael McGrath told RedFM News last Friday that the government would consider extending the €1.25 billion scheme.
Speaking to RedFM News in the past hour, Minister Damien English confirmed the move: