The Department for the Economy (DfE) is reconsidering support measures for Renewable Heat Incentive (RHI) claimants who are experiencing financial difficulties as result of tariff cuts.

Last week, London-based energy consultant Andrew Buglass was appointed independent chair of a new unit within DfE which is to examine cases of financial hardship among RHI participants.

He is to initially examine evidence submitted by scheme participants to set a definition of hardship and recommend what approach DfE should take to these cases.

The Department does not consider that moving ahead with this approach to hardship would be the most appropriate course of action

“It will then be for the Department to consider those recommendations and pursue relevant action,” a DfE spokesperson told the Irish Farmers Journal.

DfE previously said that any additional support for RHI claimants would only be in the form of existing schemes, such as short-term loans through Invest NI.

A public consultation on the matter closed in July 2019 and in a document published last week DfE acknowledged that respondents to the consultation “expressed significant discontent” with the proposals.

“As a consequence, the Department does not consider that moving ahead with this approach to hardship would be the most appropriate course of action,” the DfE response reads.

A key issue for RHI participants was that proposed support to offset tariff cuts did not include grant funding or other forms of financial compensation. However, it is unclear what other forms of support DfE is now considering.

Legal action

Many RHI claimants remain sceptical about DfE’s plan for hardship support and are instead pinning their hopes on ongoing legal action. The latest case is a judicial feview due before the High Court in December which challenges the most recent cuts to RHI tariffs in April 2019.

In last week’s consultation response, DfE repeated its commitment for a review of RHI tariffs which will consider any changes in “underlying variables which underpin the tariffs”, such as fuel prices.

Long overdue

The Ulster Farmers’ Union (UFU) described the appointment of the chair to the new RHI hardship unit as “long overdue” and said it was cautious about commenting further until the recommended approach to hardship is confirmed.

“In this long drawn out process so much is at stake and RHI recipients, including many of our members who availed of the scheme in good faith, continue to face dire financial consequences with many livelihoods at risk,” said UFU deputy president Victor Chestnutt..