Participants in the Renewable Heat Incentive (RHI) have lost their latest legal challenge on cuts to scheme payments.

In Belfast on Tuesday, the Court of Appeal was told that steps taken by the Department for the Economy to bring the cost of the scheme under control had been lawful.

“Something had to be done to avoid a crisis. These were truly exceptional circumstances and, as such, we think a lawful course was followed,” said Lady Chief Justice Dame Siobhan Keegan.

The court case, which was heard in May 2022, was taken forward by Ballymoney poultry producer Tom Forgrave on behalf of the Renewable Heat Association (RHANI).

It surrounded two different sets of cuts to previously guaranteed RHI tariffs. The first regulations in 2017 involved the introduction of tiered tariffs and an overall payment cap.

The second set of cuts, which happened in 2019, saw annual payments for a standard 99kW biomass boiler reduce from £12,140 to £2,340.

Both sets of regulations had already been subject to unsuccessful legal action in the High Court and the latest case in the Court of Appeal sought to challenge these two rulings.

Botched

Delivering the judgement on Tuesday, the Lady Chief Justice described RHI as a “botched scheme” and said the court had “sympathy for those who had been adversely affected by the mistakes that have been made”.

She pointed out that the 2019 regulations were supposed to be introduced as a temporary measure, although they remain in place.

“By virtue of this judgement we trust that, as there is now clarity on the legal issues, renewed focus will now be applied to setting a proper, permanent solution for boiler owners who acted in good faith,” she said.

The court was told that a “consensual solution” should be found “over the next number of months, rather than years” and failure to do so could result in further legal action by RHI participants.

“It is plain to us that government needs to deal with the RHI scheme going forward by way of compensation or provision of a revised tariff,” the Lady Chief Justice said.