RHI reforms - Governmental changes update

The Renewable Heat Incentive reforms that were originally laid before parliament and then withdrawn in mid-March have not yet been re-laid and latest news suggests that this may not be until after the summer recess. 

The Governmental changes mean that parliamentary clearance needs to be sought again for the reforms and this requires scrutiny by a group called the Joint Committee on Statutory Instruments. The members of this committee have not yet been appointed and, given the proximity to the parliamentary summer recess, the likelihood of all this happening before then is slim. In reality, this means that the current regulations will continue to be effective; importantly the degression on 1st July for medium biomass is likely to be followed by a further degression on 1st October. The reform of regulations bringing in the new tariff structure will follow sometime after this.

The departmental responsibilities affecting the RHI have been announced according to the latest news from the Wood Heat Association – “Richard Harrington MP will take up the energy brief, including low carbon generation, electricity and gas wholesale markets and networks, and international energy. However, Claire Perry MP will take over the climate change brief, which includes carbon budgets, green finance, and energy efficiency and heat, including fuel poverty. The energy brief is thereby split between heat and power, with heat being bundled together with energy efficiency”

What this means in practice is unclear. Energy efficiency has been tied up with renewable electricity via Feed-in Tariffs for some time; it would seem possible that, by having the responsibility for energy efficiency and heat with the same minister, a link between incentivising heat and ensuring efficient use of it may happen. Interesting times!