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Over half of RHI boilers inspected were 'contrary to spirit of scheme'

A total of 295 inspections of RHI applicants were carried out between July and December 2016 by accountancy firm PricewaterhouseCoopers
A total of 295 inspections of RHI applicants were carried out between July and December 2016 by accountancy firm PricewaterhouseCoopers A total of 295 inspections of RHI applicants were carried out between July and December 2016 by accountancy firm PricewaterhouseCoopers

OVER a half of Renewable Heat Incentive boilers inspected last year were found to be operating "contrary to the intention or spirit of the scheme".

Economy Minister Simon Hamilton has released details of 295 inspections, commissioned by the department and carried out by accountancy firm PricewaterhouseCoopers last year

Of the installations inspected, 53 per cent were found to be operating "contrary to the intention or spirit of the scheme".

"Officials in my Department and Ofgem are actively working on these findings," Mr Hamilton said.

"Work on procuring a 100 per cent programme of site inspections is being progressed by my officials. In advance of that inspection programme it would not be appropriate for me to speculate on the overall number of installations which may be operating contrary to the regulations governing the scheme," he added.

The information was released by the minister following an Assembly question from East Belfast UUP election candidate Andy Allen.

Mr Allen said he was "shocked" to learn over half of those inspected appeared to be abusing the botched scheme.

"We have repeatedly been told that the policy behind the RHI scheme was to wean businesses away from burning fossil fuels, such as oil and gas, and onto more sustainable sources of heat like biomass. But with so many inspections now operating outside of the spirit of the scheme that would suggest that a significant number of the wood burners were installed solely for the RHI payments," he said

The Department for Economy confirmed last month that PricewaterhouseCoopers was commissioned to undertake a "programme of site inspections, a review of scheme processes and controls, and a review of legislation and guidance" into RHI back in July 2016. This review superseded a smaller review commenced by Ofgem.

During a sitting of the Public Accounts Committee at Stormont on January 18 it was confirmed that 19 applications were classified under the PwC review as the most serious 'category four' and subsequently 13 of those have had their payments suspended and are being investigated by Ofgem. A suspension can last for up to six months.

The RHI review also identified 28 applicants at category three and 110 at category two who may have abused the scheme.

Brendan McCann from the Department for Economy confirmed that eight had been suspended from these categories and "Ofgem is looking at the possibility of suspending more".

Of the 63 known installations inspected by Ofgem, subsidy payments have been suspended in 33 cases, for a number of reasons, including technical issues.

The 33 cases include the 13 category four cases referred from PwC.

In relation to a 100 per cent inspection of RHI applicants Mr McCann confirmed last week it will "go to the market over the next month".

"It will be an EU procurement, and we will bring in consultants who will carry out the 100% inspection in line with our specification," he said.

Andrew McCormick from the department said during the committee hearing: "We are talking about April or May for the fully fledged programme to start. We have to go through an EU-wide procurement."