RHI scandal: Just 0.3% of claimants' payments suspended

The Department for the Economy said that 14 cases out of almost 5,000 had seen payments had been halted while investigations are undertaken into alleged abuses of a scheme which was meant to be environmentally friendly but actually incentivised claimants to run boilers all day long.

Although there have been incredible allegations of the scheme being abused – such as a farmer collecting £1 million for heating an empty shed – it has always seemed that the vast bulk of claimants are within the rules of the scheme, but that the rules were appallingly open to activity which flew in the face of the scheme’s environmental intent.

Many RHI claimants are not abusing the system even in spirit.

But the fact that more than nine months after the scheme was closed to new applicants payments have been suspended in just 14 cases is an indication of how difficult it may be to recover much of the £400 million which Stormont has committed to spend over the next two decades.

Meanwhile, the late Ian Paisley’s preacher son Kyle has set forth a blistering critique of those responsible for the RHI debacle.

The Rev Paisley, who is the twin brother of North Antrim MP Ian Paisley Jr, said that there had been “two fingers up in the face of reason, and a full fist of rebellious ingratitude in the face of Providence”.

Two months ago, Stormont’s Public Accounts Committee heard evidence from Ofgem, which is administering the scheme on behalf of the department. It told MLAs that no one had been removed from the scheme, even though in one year alone, 2014-2015, out of 12 sites which it inspected 11 were found to not be compliant with the regulations.

There is an entire section of the non-domestic (where most of the abuse appears to have taken place) regulations dealing with enforcement.

It sets out powers to temporarily withhold or suspend payments from any claimants where the department “has reasonable grounds to suspect that a participant has failed or is failing to comply with an ongoing obligation” while the department investigates the situation.

Part Seven of the regulations also sets out powers whereby payments can be permanently withheld or reduced.

And the department is also able to ask for money to be repaid where “a participant has received a periodic support payment which exceeds that participant’s entitlement or has received a periodic support payment whilst failing to comply with an ongoing obligation”.

However, TUV leader and QC Jim Allister has said that he fears the way in which the rest of the regulations are drafted may make it difficult for payments to be reined in.

Mr Allister said that “in terms of terminating the scheme and recouping money, apart from fraudulent cases, this could be difficult, because it is not just a matter of contractual obligations but also statutory obligations given the terms of paragraph three of the 2012 Regulations: “Subject to Part 7 and regulation 24, the Department must pay participants who are owners of accredited RHI installations payments, referred to in these Regulations as ‘periodic support payments’, for generating heat that is used in a building for any of the following purposes.”

Those purposes are set out as “heating a space”, “heating liquid” or “for carrying out a process”.

When the Department of the Economy was asked if it had asked for repayment of any money paid under the non-domestic RHI scheme, a spokeswoman said: “Investigation into the suspended cases is ongoing. The outcome of this will determine whether or not any repayment of monies is required.”

The department did not confirm when it suspended payment in the 14 cases.

First Minister Arlene Foster has said that she hopes to recoup about half of the £400 million committed to be spent over the next 20 years.

It is not entirely clear how that will happen, but there have been suggestions of either a tax on wood pellets or using the rates system to recover money from those with the boilers.

The Ulster Unionists have proposed a windfall tax on RHI profits.

Yesterday Sinn Féin Finance Minister Mairtin Ó Muilleoir met DUP Economy Minister Simon Hamilton to discuss how to recoup money.

The Finance Minister said that there was the need for “robust action” in order to “minimise the losses to the public purse as a result of the RHI scandal”.

He added: “The public has been let down badly by the introduction and operation of this scheme.

“It is essential that public confidence is restored.

“There must be immediate and effective action to reduce the losses and bring to book those who have abused this scheme.”

Ulster Unionist MLA Steve Aiken asked why the Executive was still finalising a plan to recoup money now, given that it has known for more than a year that there is a serious problem with the RHI scheme.

He said that the “long overdue” proposals will need to be “thoroughly robust and legally enforceable”.