RHI boiler tariff increase proposed after review
- Published
The proposed 40% increase would take annual payments for the most common boiler to £3,250
An increase in tariffs is being suggested for (Renewable Heating Incentive) RHI boiler owners following a review of their costs.
But the proposed 40% uplift would only take annual payments for the most common boiler to £3,250, an increase of just under £1,000.
The Economy Department's proposal is out for public consultation.
It is likely to leave businesses frustrated by the level of support offered in Northern Ireland.
It is claimed an equivalent boiler installed in Great Britain's RHI scheme can earn considerably more in subsidy payments each year.
And that would mean a differential of tens of thousands of pounds per boiler over the 20-year term of the scheme.
The comparison was aired at a Westminster committee last June which found that firms in Northern Ireland had been given a "raw deal".
The Economy Department says the proposed increase will take account of increased servicing costs and reduced fuel savings for scheme participants in Northern Ireland.
And they say the new payment means the scheme remains compliant with EU state aid rules which set a 12% rate of return for firms' investment.
The 656-page report into the RHI scheme was published last month
Serious flaws in the original RHI scheme in Northern Ireland caused a political scandal which helped collapse Stormont and led to the establishment of a public inquiry.
It reported last month, finding that there had been no corruption but that RHI had been poorly designed and run, leading to massive pressure on the budget.
Deep cuts in subsidies were implemented, despite promises that payments would be grandfathered throughout the scheme.
'Overzealous reductions'
Scheme participants have argued that the reductions were overzealous and penalised businesses which had invested in good faith in a government scheme.
They're due in court in June to challenge the subsidy cuts.
Economy minister Diane Dodds said any change in the tariff after the consultation would require assembly legislation.
"I have made it clear that, in relation to matters involving the RHI scheme, I will always seek to act in a manner that is fair to both scheme participants who joined in good faith and to taxpayers who are funding the scheme."
There have been calls for the existing scheme to be shut down, something committed to in the New Decade New Approach Deal , externalwhich re-established the Stormont institutions in January.
The public consultation on the proposed increase runs until late May.
- Published13 March 2020
- Published30 June 2019
