Select committee: Northern Ireland Affairs Committee

Changes to NI Renewable Heat Incentive payments inquiry

Closed Opened 13 Mar 2019 Closed 25 Jun 2019
Inquiry scope (the committee's words)
Following the passage of a bill relating to payments under the NI Renewable Heat Incentive scheme in Westminster, the Northern Ireland Affairs Committee launched a short inquiry into the new payments structure. The Northern Ireland (Regional Rates and Energy) (No. 2) Bill was fast-tracked through the House of Commons with all relevant stages of the bill taken in one day. The Chair of the Committee, along with many other Members, raised concerns about this process and about the limited time available for scrutiny. The House was assured that the bill must be fast-tracked for payments to continue to be made to businesses. Terms of Reference What was the rationale for the new tariff structure introduced by the bill? How will these new tariffs affect the businesses they apply to? What other options could be considered for payments to stay line with the 12% approved by state aid? How do these tariffs compare with those available in Great Britain? If these changes had not been introduced by 31 March, what would be the consequences? How far does the voluntary buy-out scheme mitigate the potential impact of the new tariffs?

Where it stands

The inquiry is closed, opened 13 March 2019.

The committee has published 1 report, most recently 8th Report - Changes to the Northern Ireland Renewable Heat Incentive scheme payments on 30 June 2019.

The government's response

Published 6 September 2019.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Department for the Economy remains confident in the existing tariff work but commits to a further independent review of the NI Non-Domestic RHI tariffs in the current financial year.

  • On tariffs, DfE is "committed to carrying out a further independent review" in the current financial year. Its terms of reference will include consideration of the assumptions within the GB and RoI schemes and how they relate to the NIRHI tariffs.
  • On the Republic of Ireland scheme, DfE and UK Government colleagues concluded that there is not the evidence to warrant a complaint to the European Commission. DfE "will continue to monitor the situation".
  • The first voluntary buy-out scheme will open for applications in September 2019. Offers will use each participant's individual costs, including indirect costs "in line with the allowable costs set out in the NIRHI guidance", and participants can challenge calculations.
  • On hardship, DfE "remains committed to appointing an independent chair" and will do so "as soon as possible". The chair, not the Department, will recommend a definition of hardship.

Read the government's response ↗ Report an error

Reports

1 report

Oral evidence sessions

4 sessions

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Date Session and witnesses Source
8 May 2019
Oral evidence session
No witnesses recorded
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7 May 2019
Oral evidence session
No witnesses recorded
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29 Apr 2019
Oral evidence session
No witnesses recorded
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24 Apr 2019
Oral evidence session
No witnesses recorded
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Correspondence

10 letters

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PublishedDirectionLetter
28 Oct 2019 From committee Letter to Noel Lavery, Permanent Secretary, Department for the Economy, relating to the RHI scheme, 24 October 2019
25 Oct 2019 Not recorded Correspondence to the Chair from Noel Lavery, Permanent Secretary Department for the Economy, regarding changes to the NI RHI scheme payments, 15 October 2019
6 Sep 2019 To committee Letter from the Secretary of State for Northern Ireland relating to changes to the Northern Ireland Renewable Heat Incentive scheme payments, 4 September 2019
30 Jun 2019 Not recorded Correspondence from Noel Lavery, Permanent Secretary, Department for the Economy, regarding Northern Ireland Renewable Heat Incentive - NI Audit Office Letter, 31 May 2019
30 Jun 2019 Not recorded Correspondence from Kieran Donnelly, Comptroller & Auditor General, regarding Northern Ireland Renewable Heat Incentive, 21 May 2019
5 Jun 2019 Not recorded Correspondence from David Brown, Ulster Farmers Union Deputy President relating to Changes to NI Renewable Heat Incentive payments inquiry, 17 May 2019
5 Jun 2019 Not recorded Correspondence from Justin Coleman, Agri Business and Live Production Services Director, Moy Park, relating to Changes to NI Renewable Heat Incentive payments, 23 May 2019
1 May 2019 Not recorded Correspondence from Noel Lavery, Permanent Secretary, Department for the Economy, regarding Northern Ireland Renewable Heat Incentive payments, 19 April 2019
21 Mar 2019 Not recorded Correspondence to Sir Patrick Coghlin, Chairman of the RHI Inquiry, relating to Changes to NI Renewable Heat Incentive payments 13 March 2019
21 Mar 2019 Not recorded Correspondence from Sir Patrick Coghlin, Chairman of the RHI Inquiry, relating to Changes to NI Renewable Heat Incentive payments, 14 March 2019