RHI scheme to continue for boiler owners in Northern Ireland

The green energy scheme which contributed to the collapse of Stormont in 2017 will continue for boiler owners in its current form according to the Economy Minister Gordon Lyons.

The parties committed to closing down the Renewable Heat Incentive scheme as part the New Decade, New Approach agreement to restore Stormont.

DUP minister Gordon Lyons has said he tried to bring a proposal on the future of the scheme to the Stormont Executive before the collapse of the Executive last month. However, Mr Lyons says other parties prevented his proposal being discussed.

It means the scheme will continue until an executive decision is made.

"Well of course everything in regards to RHI would be an Executive decision," said Mr Lyons.

"I on numerous occasions have tried to bring this issue to the Executive, I did not get the ability to put that issue onto the agenda, others blocked it.

"It's up for them to answer why.

"I want to see a resolution to this issue.

"For me, it's always been that I want something put in place that is fair to those on the scheme and fair to taxpayers.

"I brought recommendations to the Executive that would achieve that, others didn't allow it onto the agenda, it's up to them to answer that.

"It (the scheme) will continue because we don't have that agreement, we didn't have the ability to have the discussion.

"I can tell you that the DUP were happy to have it on the agenda, we didn't get agreement from others."

In response, Sinn Fein has accused the DUP of stalling the closure of the scheme.

In a statement Sinn Fein MLA John O'Dowd said:

"The DUP economy minister needs to end the delay and close the Renewable Heat Incentive scheme immediately.

“Closing this scheme is a commitment within New Decade, New Approach, and closure was endorsed by the Executive over a year ago. However, the DUP has attempted to stall closure by failing to bring forward proposals to close the scheme. Incredibly it has instead proposed an increase in tariffs.

“Now the DUP has walked out of the Executive and the continuation of the scheme creates the risk of leaving a multi-million pound hole in the Budget. This would have serious implications for public services including health and education.

“The DUP’s reckless actions are hurting ordinary people and putting millions of pounds at risk. They should get back to work, close the RHI scheme and protect the public finances.”

The Department for the Economy held a public consultation on the future of the RHI scheme last year, but no firm decision was made public on how it should be managed. The proposals included complete closure of the scheme and the buy-out of up to 2,000 boiler owners still involved.

It had been estimated that the closure of the scheme would cost around £70 million.

The cost of the original Renewable Heat Incentive scheme spiralled out of control in 2016 when it was recognised that the tariffs paid to boiler owners were too generous. At one point it was estimated the RHI scheme would cost the taxpayer more than £700m.

The costs were brought under control by the closure of RHI to new applicants and a severe reduction in the tariffs. However, boiler owners have been challenging that move in the courts.