• HPA Issue response to Govt Proposals for RHI Reform

The HPA have been closely involved in discussions to reform of the RHI following a consultation issued by DECC in February 2016

DECC (now BEIS) issued a Consultation in Feb 2016 for Reform of the RHI. This included Heat Demand Limits for DRHI (ASHP, GSHP & Biomass) and also the possibility of Mandatory Heat Metering (MHM).

Considering there was a genuine risk to the continuance of the RHI scheme due to Brexit, government changes and the state of the economy, this has to be seen as a largely positive outcome. We are pleased to see that Mandatory Heat Metering will not be introduced and feel the 3 papers we presented to DECC/BEIS outlining reasons why this should not be introduced and what could replace the proposal had a very large impact. The tariff increase for ASHP (10.02 p/kwh) will help to counterbalance the new total gross heat demand limit of 20,000, with the result that any application under 26,700 kWh, from Spring onward, will be better off under the new scheme. The larger heat demand limit of 30,000 kWh for GSHP will assist to offset the more modest rise in the tariff to 19.55 p/kWh.

Mike Nankivell
Mike NankivellPresident of the HPA