Update On The Renewable Heat Incentive

The RHI was supposed to be launched on 30 September 2011 however, DECC announced shortly before the proposed start of the scheme that as part of the State Aid approval the European Commission had expressed concerns that the large biomass tariff was set too high. We understand from the REA that the Commission has provided State Aid approval on the basis of an agreed revised tariff for large biomass. A change to the large biomass tariff means that the RHI regulations will have to be amended and submitted to Parliament for approval and internal procedures at DECC will now follow. It is anticipated that the RHI will now be launched in November. This delay may affect the start of the RHI being opened up to the non-domestic sector in Phase 2.