Report backs OFTEC's calls for RHI reform

Report backs OFTEC's calls for RHI reform

Thursday, March 22, 2018 By OFTEC

Published at the end of last month, the 'Low-carbon heating of homes and businesses and the Renewable Heat Incentive' report examines progress against the RHI's key objectives and cost-effectiveness of the scheme, alongside monitoring, evaluation and non-compliance.

The findings validate OFTEC's long held concerns that take up of the RHI has been 'much lower than anticipated' with the scheme delivering just 78,048 new installations in Great Britain (as at December 2017) at a cost of £1.4bn. NAO estimates that at this current rate, the RHI will achieve around 111,000 new installations by March 2021 - just 22% of the original 513,000 target.

The cost effectiveness of the RHI was also described as 'uncertain' and 'likely to be worse than the Department's estimate'. Furthermore, the report states that the Department for Business, Energy & Industrial Strategy (BEIS) has failed to keep track of sums paid out under the scheme, with overpayments to RHI participants in 2016-17 as a result of non-compliance with the regulations estimated to be as high as £3 million.

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