The group representing Renewable Heat Incentive (RHI) boiler owners has agreed a settlement with the Department for the Economy (DfE), which gives the group significant protection from covering the costs of legal challenges relating to RHI. It is understood that the agreement puts a limit on the amount that the Renewable Heat Association for NI (RHANI) must pay to cover DfE’s legal costs from the group’s unsuccessful judicial review last year. The case challenged cuts made by DfE to RHI tariffs, and RHANI’s own legal costs for the case amounted to over £200,000 alone.
The group representing Renewable Heat Incentive (RHI) boiler owners has agreed a settlement with the Department for the Economy (DfE), which gives the group significant protection from covering the costs of legal challenges relating to RHI.
It is understood that the agreement puts a limit on the amount that the Renewable Heat Association for NI (RHANI) must pay to cover DfE’s legal costs from the group’s unsuccessful judicial review last year. The case challenged cuts made by DfE to RHI tariffs, and RHANI’s own legal costs for the case amounted to over £200,000 alone.
The settlement with DfE must be issued as a court order before it is finalised, but it is understood it will apply to the judicial review, and the upcoming appeal of last year’s judgment, plus any future appeals. “We have completed all negotiation and have agreed a settlement with DfE on cost protection for the judicial review, for the Court of Appeal, for the UK Supreme Court and for the European Court of Justice,” a note circulated among RHANI members last week read.
There were concerns within RHANI that another unsuccessful legal challenge over RHI, coupled with the need to cover all DfE’s legal costs, would leave the organisation insolvent. But last week’s membership update stated that the risk “has been extinguished.”
Meanwhile, legislation is being drafted at Westminster, which will allow cost cutting RHI tariff rates to be extended for another 12 months.
“In the absence of devolved ministers, the Department is working on taking forward legislation in Parliament to extend the tariffs set out in the Renewable Heat Incentive Scheme,” stated a letter from DfE Permanent Secretary Noel Lavery to RHANI executive chair Andrew Trimble last week.
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