The Department for the Economy is facing the prospect of a third court case surrounding the Renewable Heat Incentive (RHI).

It is understood that a NI-based animal feed manufacturer is preparing to seek leave for a judicial review over the ineligibility of combined and heat power (CHP) installations for RHI.

CHP installations are renewable technologies that generate electricity, and utilise heat energy produced in the process.

European Commission

The case surrounds the Department for the Economy, not including CHP technologies in an application to the European Commission in 2015 for state aid approval under the RHI scheme.

It is understood the feed company spent around £0.5m developing a CHP plant in the understanding that the technology would receive payment under RHI. However, the omission of CHP plants in the Commission’s state aid approval was only realised in 2017.

“The Department recently sought legal advice and has now concluded that it is unable to pay periodic payments to CHP installations,” a letter seen by the Irish Farmers Journal and addressed to the feed company in May 2017 reads.

Value

Reports suggest RHI payments for CHP installations would have been worth £160m over 20 years.

It is understood to have been incorrectly included in the Department’s calculation of a £490m overspend from the RHI scheme.

As reported in last week’s Irish Farmers Journal, this is believed to be one of the costs being questioned by the group representing RHI recipients, known as the Renewable Heat Association for NI (RHANI).

A judicial review between the RHANI and the Department for the Economy over cuts to RHI tariffs is to be heard in October.