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Renewable Heat Incentive Update: Stand-by Mechanism for Budget Management put in Place

Ofgem has this week published a Guidance Note to explain to existing participants and prospective applicants to the Renewable Heat Incentive (RHI) Scheme how the Department of Energy and Climate Change’s (DECC’s) stand-by mechanism for budget management will affect them.  This mechanism enables Government to suspend the Scheme to new applicants until the next financial year if evidence showed that the available budget could be breached.  DECC has stated that the likelihood of suspending the Scheme is low as RHI applications would need to increase by a rate of 500% by the end of the financial year for the budget to be breached.  Further information is available on DECC’s website .

 

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