Policy background Renewable Heat Incentive scheme
The Act enables the continuation of cost control measures for the RHI scheme in Northern Ireland. These cost controls regulate rates of return for participants with small or medium biomass installations accredited before 18 November 2015. These installations previously had the capacity to generate costs far beyond projected levels, placing public finances at risk. The original cost control measures were introduced on 1 April 2017 but were due to expire on 31 March, beyond which time cost controls for those installations accredited before November 2015 would have no legal basis. The cost controls reduce the overall cost of the RHI Scheme by around half, protecting the Northern Ireland budget from potentially very significant overspends. The Act therefore provides for the continuation of the 2017-18 cost control measures for a further 12 month period (1 April 2018 to 31 March 2019), during which time work to develop and consult on long term cost control measures will be undertaken by the Northern Ireland Civil Service.