30/06/2017
RHI Scheme: Watchdog Raises 'Significant Concerns'
Ten boilers installed during the Renewable Heat Incentive (RHI) scheme ran for over 21 hours a day last year, a watchdog has said.
The botched RHI scheme paid subsidies worth at least £50,000 per machine, with each burning wood pellets for more than 21 hours a day, according to a report by the Northern Ireland Audit Office (NIAO).
The devices were installed before November 2015 when the scheme was modified to reduce the taxpayer bill.
Comptroller and auditor general Kieran Donnelly said: "I continue to have significant concerns about the operation of this scheme and the serious systemic weaknesses in controls that have facilitated the possibility of funding that is at best not in line with the spirit of the scheme and at worst is fraudulent."
The report said:
• Of 1,687 boilers in the scheme before November 2015, 39 per cent are using them for more than half the available hours in a year – "more than 12 hours a day and seven days a week all year round" – with an RHI subsidy per boiler in 2016/17 of at least £28,000.
• Ten are being used for 90 per cent or more of available hours, creating a subsidy per boiler of at least £50,000 in 2016/17.
• There is a considerably different pattern of usage in the revised scheme after November 2015. Of the 251 installed and operating, 96 per cent were being used for 30 per cent or less of the hours in a year and only one used for more than 50 per cent.
• Out of 2,128 boilers in the scheme, 1,419 were part of multiple installations at 437 single sites.
The auditor said: "I am concerned at the extent of the use of multiple boilers which allowed applicants to claim a considerably higher level of subsidy payments than would have been payable for installations with a single boiler of a more appropriate size greater than 100kW (or 200kW after November 2015)."
The state-funded RHI was supposed to offer a proportion of the cost businesses had to pay to run eco-friendly boilers, but the subsidy tariffs were set too high, and without a cap, so it ended up paying out significantly more than the price of fuel.
This enabled some applicants to "burn to earn" - getting free heat and making a profit as they did so.
An independent inquiry has been launched.
Sinn Féin MLA Máirtín Ó Muilleoir is seeking an urgent meeting with Mr Donnelly following the publication of his report.
He said: "Many ordinary people will be shocked to get confirmation that the RHI scheme cost us £27m in 2016/’17 and is on course to cost us a further £2m in this financial year.
"The £2m cost shows that Arlene Foster's pledge in January to bring forward a zero cost solution to RHI was worthless.
"The British public will be equally shocked to hear that they face a £22m bill this year for a scheme which in the words of the C&AG has, 'serious systemic weaknesses in controls that have facilitated the possibility of funding that is at best not in line with the spirit of the scheme and at worst is fraudulent'.
"The projected costs up to 2037 for the north are around £70m and aprroximately £400m to the British Treasury.
"These revelations about the squandering of public money underline the vital role of Judge Coghlin's public inquiry in getting to the truth of the RHI scandal."
(CD)
The botched RHI scheme paid subsidies worth at least £50,000 per machine, with each burning wood pellets for more than 21 hours a day, according to a report by the Northern Ireland Audit Office (NIAO).
The devices were installed before November 2015 when the scheme was modified to reduce the taxpayer bill.
Comptroller and auditor general Kieran Donnelly said: "I continue to have significant concerns about the operation of this scheme and the serious systemic weaknesses in controls that have facilitated the possibility of funding that is at best not in line with the spirit of the scheme and at worst is fraudulent."
The report said:
• Of 1,687 boilers in the scheme before November 2015, 39 per cent are using them for more than half the available hours in a year – "more than 12 hours a day and seven days a week all year round" – with an RHI subsidy per boiler in 2016/17 of at least £28,000.
• Ten are being used for 90 per cent or more of available hours, creating a subsidy per boiler of at least £50,000 in 2016/17.
• There is a considerably different pattern of usage in the revised scheme after November 2015. Of the 251 installed and operating, 96 per cent were being used for 30 per cent or less of the hours in a year and only one used for more than 50 per cent.
• Out of 2,128 boilers in the scheme, 1,419 were part of multiple installations at 437 single sites.
The auditor said: "I am concerned at the extent of the use of multiple boilers which allowed applicants to claim a considerably higher level of subsidy payments than would have been payable for installations with a single boiler of a more appropriate size greater than 100kW (or 200kW after November 2015)."
The state-funded RHI was supposed to offer a proportion of the cost businesses had to pay to run eco-friendly boilers, but the subsidy tariffs were set too high, and without a cap, so it ended up paying out significantly more than the price of fuel.
This enabled some applicants to "burn to earn" - getting free heat and making a profit as they did so.
An independent inquiry has been launched.
Sinn Féin MLA Máirtín Ó Muilleoir is seeking an urgent meeting with Mr Donnelly following the publication of his report.
He said: "Many ordinary people will be shocked to get confirmation that the RHI scheme cost us £27m in 2016/’17 and is on course to cost us a further £2m in this financial year.
"The £2m cost shows that Arlene Foster's pledge in January to bring forward a zero cost solution to RHI was worthless.
"The British public will be equally shocked to hear that they face a £22m bill this year for a scheme which in the words of the C&AG has, 'serious systemic weaknesses in controls that have facilitated the possibility of funding that is at best not in line with the spirit of the scheme and at worst is fraudulent'.
"The projected costs up to 2037 for the north are around £70m and aprroximately £400m to the British Treasury.
"These revelations about the squandering of public money underline the vital role of Judge Coghlin's public inquiry in getting to the truth of the RHI scandal."
(CD)
Related Northern Ireland News Stories
Click here for the latest headlines.
19 December 2016
First Minister Apologises RHI Scheme Did Not Have Cost Controls
First Minister Arlene Foster has apologised that the Renewable Heat Incentive (RHI) scheme did not have cost controls. Mrs Foster said it is her "deepest political regret" as she spoke at the Assembly on Monday, 19 December. A number of MLAs from other parties walked out of the chamber during her speech.
First Minister Apologises RHI Scheme Did Not Have Cost Controls
First Minister Arlene Foster has apologised that the Renewable Heat Incentive (RHI) scheme did not have cost controls. Mrs Foster said it is her "deepest political regret" as she spoke at the Assembly on Monday, 19 December. A number of MLAs from other parties walked out of the chamber during her speech.
21 December 2016
Executive Considering Buy Out Scheme To Reduce RHI Bill
The NI Executive is understood to be exploring a plan to "buy out" the contracts of those in receipt of Renewable Heat Incentive (RHI) payments. According to reports the Executive is investigating if buying out the contracts would help avoid the projected £400 million loss to NI taxpayers.
Executive Considering Buy Out Scheme To Reduce RHI Bill
The NI Executive is understood to be exploring a plan to "buy out" the contracts of those in receipt of Renewable Heat Incentive (RHI) payments. According to reports the Executive is investigating if buying out the contracts would help avoid the projected £400 million loss to NI taxpayers.
13 March 2020
Errors & Omissions Behind Botched RHI Scheme
Multiple errors and omissions were behind the botched cash for ash renewable energy scandal, a public inquiry has found. Published on Friday, the RHI Inquiry found that the scheme was a "project too far".
Errors & Omissions Behind Botched RHI Scheme
Multiple errors and omissions were behind the botched cash for ash renewable energy scandal, a public inquiry has found. Published on Friday, the RHI Inquiry found that the scheme was a "project too far".
18 May 2017
Call For Farmers 'Unfairly Criticised' Over RHI Scheme To Receive Recognition
The Ulster Farmers' Union is calling for farmers who were unfairly criticised over the Renewable Heat Incentive scheme to receive recognition that they were unfairly treated. The union made the call after it was revealed poultry and mushroom farmers have been cleared of any suggestion they misused the RHI scheme.
Call For Farmers 'Unfairly Criticised' Over RHI Scheme To Receive Recognition
The Ulster Farmers' Union is calling for farmers who were unfairly criticised over the Renewable Heat Incentive scheme to receive recognition that they were unfairly treated. The union made the call after it was revealed poultry and mushroom farmers have been cleared of any suggestion they misused the RHI scheme.
31 July 2024
'Genuine Users' Of RHI Scheme Must Be Treated Fairly – UUP
Genuine users of the Renewable Heat Incentive (RHI) scheme must be treated and compensated fairly, the Ulster Unionist Party has said. UUP Agriculture, Environment & Rural Affairs spokesperson Tom Elliott made the call after the Economy Minister, Conor Murphy, announced that Non-Domestic RHI scheme will be closed.
'Genuine Users' Of RHI Scheme Must Be Treated Fairly – UUP
Genuine users of the Renewable Heat Incentive (RHI) scheme must be treated and compensated fairly, the Ulster Unionist Party has said. UUP Agriculture, Environment & Rural Affairs spokesperson Tom Elliott made the call after the Economy Minister, Conor Murphy, announced that Non-Domestic RHI scheme will be closed.