Farmers in Northern Ireland who installed a boiler under the Renewable Heat Incentive (RHI) scheme say they are bewildered and frustrated by the Department for the Economy’s (DfE) suggested tariffs increase. The proposed uplift was recommended after the Economy Department reviewed boiler operators’ costs; findings in the recently published hardship report showed that tariff alterations had a severe effect on revenue.
The original tariff rates have been significantly reduced in recent years. This was in response to the poor management of the scheme by government ministers that led to significant overspend of public money.
DfE is proposing a tariff increase from 1.8p to 2.5p for 20-99kW boilers and just a 0.1p rise for 100-199kW connections. UFU deputy president Victor Chestnutt said the amount 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. 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,” said Chesnutt.
DfE published the findings of independent consultant Andrew Buglass who was tasked with looking into hardship experienced by participants on the scheme. The report makes it clear that previous tariff changes have impacted the cash flow of participating businesses but then goes on to justify the reasoning behind the devastating reductions. This further highlights the constant frustrations the UFU have experienced since the beginning of this debacle.
“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.
“What caps our bewilderment is that there is a shortage of biomass on the back of the coronavirus lockdown. There have been moves in Great Britain to extend their RHI scheme meanwhile in Northern Ireland, our Government continue to offer our members mere crumbs from the table,” said the UFU deputy president.
