Northern Irish farmers 'frustrated' at 'meagre' RHI price rise

UFU deputy president Victor Chestnutt said the proposed increase was an 'insubstantial increase'
UFU deputy president Victor Chestnutt said the proposed increase was an 'insubstantial increase'

Northern Irish farmers have said they are 'bewildered and frustrated' at the government's 'meagre' proposal to increase tariffs for the Renewable Heat Incentive.

The Department for the Economy suggested a slight rise in the RHI tariff from 1.8p to 2.5p for 20-99kW boilers and 0.1p for 100-199kW connections.

The controversial RHI scheme offers financial incentives for farming businesses to start using renewable fuels to generate heat.

The proposed uplift reviewed boiler operators’ costs while findings in the recently published hardship report showed that tariff alterations had a severe effect on revenue.

The Ulster Farmers’ Union (UFU) said the suggestion was an 'insubstantial increase' which would be of 'no benefit to struggling boiler owners'.

“The tariff increase that has been proposed by the DfE doesn’t even come close to what the UFU called for last month," the union's deputy president, Victor Chestnutt said.

"We sought for the reinstatement of a tariff structure that is reflective of the true costs associated with running a boiler.

"What is even more confusing is that the recommendation comes on the back of a report by Cornwall Insight which recognised a rise in fuel prices as well as boiler service and maintenance costs.

"Yet DfE have only increased one tariff by 0.7p and the other by 0.1p which could result in many boiler operators moving to oil centred heating especially with the current price of oil,” added Mr Chestnutt.

DfE published the findings of independent consultant Andrew Buglass who was tasked with looking into hardship experienced by participants on the scheme.

The report said that previous tariff changes have impacted the cash flow of participating businesses but then goes on to justify the reasoning behind the reductions.

"This further highlights the constant frustrations the UFU have experienced since the beginning of this debacle," Mr Chestnutt said.

“UFU boiler operators invested in the RHI scheme in good faith only to be sold out and the UFU’s position remains unchanged.

"We want to see the full reinstatement of a fair tariff that reflects their costs. It is a very reasonable request and the least boiler operators deserve at this late stage."