Economy Minister Conor Murphy has confirmed that legislation is to be developed to close the Renewable Heat Incentive (RHI) for all existing participants.In a statement, the Sinn Féin MLA said the decision was taken by First Minister Michelle O’Neill and deputy First Minister Emma Little-Pengelly “under urgent procedure”.
Economy Minister Conor Murphy has confirmed that legislation is to be developed to close the Renewable Heat Incentive (RHI) for all existing participants.
In a statement, the Sinn Féin MLA said the decision was taken by First Minister Michelle O’Neill and deputy First Minister Emma Little-Pengelly “under urgent procedure”.
“Closure will include a payment mechanism, which protects the interests of scheme participants, the majority of whom have acted in good faith, and the taxpayer,” Minister Murphy said.
In the meantime, a “revised tariff” under RHI is to be developed for scheme participants this winter, and discussions will be conducted on how funding can be used to “more effectively reduce carbon emissions”.
“The process is now underway to close RHI, provide participants with fair compensation, and use the available AME (funds) to effectively progress our net zero commitments,” Minister Murphy said.
NDNA deal
A commitment to close down the RHI was initially set out in the New Decade, New Approach deal, which was agreed by the main NI political parties in January 2020.
In April 2024 the energy regulator Ofgem then gave a formal notice that it intends to stop administering the scheme on behalf of the Department for the Economy.
“This further underlines the urgent need to close the scheme,” Minister Murphy said.
Criticised
However, the announcement has been criticised by the Renewable Heat Association (RHANI), which represents RHI participants.
“We have encouraged all 1,200 businesses that invested in the scheme to engage with their MLAs,” said Andrew Trimble from RHANI.
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