Northern Ireland

Investigation into alleged misuse of major eco-friendly heating scheme

Auditors are investigating a renewable heat scheme that has left Stormont facing a potential £20 million overspend
Auditors are investigating a renewable heat scheme that has left Stormont facing a potential £20 million overspend Auditors are investigating a renewable heat scheme that has left Stormont facing a potential £20 million overspend

AUDITORS are investigating an alleged "burning ash to make cash" racket that exploited a renewable heat scheme to leave Stormont facing a potential £20 million overspend.

Whistleblower claims on the alleged misuse of the Renewable Heat Incentive (RHI) scheme have led to the Audit Office probe, due to be completed before the summer recess.

The RHI was axed by former economy minister Jonathan Bell in February.

The scheme incentivised businesses to install costly eco-friendly heating systems by paying them a tariff for the heat they burned over a 20 year period. Thousands signed up to the scheme, which was started in 2012 and extended to domestic customers in 2014.

However, unlike in Britain, in Northern Ireland no cap was placed on the money that could be claimed in proportion to the size of boiler.

That provided a loophole that allowed a business to burn more heat than it required, just to make money.

The scheme was tightened up in November with the introduction of a cap, but ahead of the change there was a surge in applications to sign up to the no-cap tariff system.

The surge left the then Department of Enterprise, Trade and Investment (DETI) exposed to a huge overspend if it was to continue to run the scheme.

The NI Audit Office is currently finalising a report on allegations surrounding the RHI as part of its overall review of DETI's 2015/16 accounts.

A £20 million overspend pressure has been earmarked within the Executive's central budget in relation to RHI.

It will all have to be paid out if auditors deliver a clean bill of health, but if misuse is identified then a proportion is set to be retained.