‘Auditor’s ‘ongoing concern’ over RHI scheme

The green energy scheme became mired in scandal in 2016 when it emerged it was at risk of overspending by millions.

A public inquiry made some criticism of First Minister Arlene Foster’s role in developing the scheme and also highlighted “unacceptable behaviour” by several of her party’s special advisers.

But the probe, chaired by retired judge Sir Patrick Coghlin, said it would be wrong to blame specific individuals or groups for the design flaws that saw applicants “perversely incentivised” to burn excess heat to turn a profit.

In his annual audit of financial statements of the Department for the Economy – which runs the scheme – Auditor General Kieran Donnelly said he has been asked to monitor and review progress around the recommendations.

Mr Donnelly said the cost of the scheme fell from £21.1 million in 2018-19 to £3.8 million in 2019-20 following significant changes to the tariff paid to applicants.

However, he said in the last financial year some £40,000 was overpaid to some applicants, and he also expressed concern around the “overproduction of heat” and “failure to provide accurate information regarding the heat use”.

The Auditor General’s report shows a decrease in heat output by those involved.

“The current level of heat generated is now more in line with what was envisaged by the department at the outset of the scheme,” he said.

But Mr Donnelly said “issues are still being identified such as the overproduction of heat and failure to provide accurate information regarding the heat use”.