Decision to extend temporary 2017 RHI Regulations 'extremely alarming'

The Renewable Heat Incentive scheme was an attempt by NI government to help increase consumption of heat from renewable sources
The Renewable Heat Incentive scheme was an attempt by NI government to help increase consumption of heat from renewable sources

The Northern Irish government has confirmed that non-domestic Renewable Heat Incentive (RHI) installation audits will commence this month, creating a backlash within the farming community.

The Ulster Farmers’ Union (UFU) says that while it welcomes the confirmation, it is however 'extremely concerned' that the Department for Economy intends on seeking an extension to the current 2017 RHI Regulations.

Set up in November 2012, the Renewable Heat Incentive scheme was an attempt by the Northern Ireland Executive to help to increase consumption of heat from renewable sources.

It offered financial incentives to farms, businesses and other non-domestic consumers to use biomass boilers that mostly burned wood pellets, as well as solar thermal and heat pumps.

But flaws in setting the scheme's subsidy rate left it open to abuse as claimants could earn more cash the more fuel they burned, with one farmer having made £1m out of renting an empty shed.

The Northern Ireland Executive collapsed after deputy First Minister Martin McGuinness resigned in protest over the Renewable Heat Incentive scandal.

And at the beginning of June, the UFU raised concerns about the delay to the RHI scheme audit process and had pressed senior officials within DfE to confirm when these audits would get underway.

The UFU said that the delay to the RHI scheme audit process is becoming 'farcical'.

'Wrongdoing'

“Back in June we made clear of the need to prioritise the audits so that those using the scheme legitimately could be cleared of any wrongdoing,” says UFU chief executive Wesley Aston.

“We want to see the audits carried out in a quick and timely manner. The vast majority of people using the scheme have operated in line with RHI regulations and they want to see a fair solution found.”

Mr Aston says the Department’s latest announcement of their intention to extend temporary legislation beyond 31 March 2018 is concerning.

“From the outset it was made clear that the temporary capping of tariffs was to allow for a longer term solution to be found and it is unfair to expect RHI legitimate recipients to suffer financially,” warned Mr Aston.

“These people have made investments in a long term programme backed by government and they should not have to carry the financial burden while we wait on Ministers to be appointed and the formation of an Executive.”

The UFU has written to Dr Andrew McCormick, DfE Permanent Secretary, to seek clarity on the temporary legislation that is currently in place and to discuss further its plans of a public consultation on future RHI Legislation.