Interim cost controls of the Renewable Heat Incentive

This consultation proposed an interim cost control measure for the Renewable Heat Incentive (RHI) that would suspend the RHI until the next financial year should estimated spending - based on applications and accreditations - reach a level where the budget could be breached.

This is to ensure that there is a mechanism for budgetary control in place until we are able to introduce a flexible degression-based system, which would be able to respond to deployment and gradually lower tariffs as the scheme grows.

The consultation sought views on whether a notice period of up to one month should be given prior to a suspension, as there is a trade-off between the amount of notice and the extent to which the trigger would need to be set conservatively.

Current application levels are low relative to the available budget and if these levels continue the proposed interim cost control measure is unlikely to be needed. However, there is a high degree of uncertainty about how the market will respond to the RHI and to ensure the continued success of the RHI we must learn the lessons from other schemes and maintain budgetary control.

The consultation ran from 26 March 2012 until 23 April 2012 and the Government response was published on 11 June 2012.

Tel: 0300 068 6858 Email: rhi@decc.gsi.gov.uk Post: Geraldine Treacher

Department of Energy & Climate Change

3 Whitehall Place

London

SW1A 2AW

The Renewable Heat Incentive stand-by mechanism for budget management: Government response to consultation on Renewable Heat Incentive interim cost control

Impact Assessment: Renewable Heat Incentive (RHI) stand-by mechanism for budget management

The Renewable Heat Incentive: consultation on interim cost control

Impact Assessment: Interim cost control for the Renewable Heat Incentive (RHI)