Cost control

The government intends to introduce cost control measures to ensure that the RHI does not overspend the budget available

This is being introduced in two stages (why make it easier than we have to?)

Long term cost control

Intended to take effect from April 2013, this cost control regime, according to the government:

incorporates lessons from other schemes and meets previous commitments.

It will include a package of policy options that include modified pre-accreditation, degression and reviews. The consultation will start in July 2012, with a view to legislation in November. This consultation will also include amendments to the existing scheme covering air quality and biomass sustainability issues.

The government expressly confirms that:

Cost control measures can only apply going forward, i.e. to new entrants, so installations already receiving the RHI will continue to receive their current tariff (adjusted for RPI) for the full 20 year duration.

Interim cost control

A simpler mechanism is to be implemented more urgently, with effect from summer 2012. This is effectively a measure to suspend the RHI if it is in danger of overspending.

The consultation thereon opened on 26th March 2012 and closes on 23rd April 2012.