AQO 1975/22-27 Oral question to the Minister for the Economy
To ask the Minister for the Economy for an update on the closure of the Non-Domestic Renewable Heat Incentive Scheme.
Asked by Eóin Tennyson MLA on 1 May 2025
- Answered
- Oral
- Answered in the Chamber
- Tabled
- 1 May 2025
- Answer due by
- 13 May 2025
- Answered
- 13 May 202512 days after tabling
- Department
- Department for the Economy
- Priority question
- No
Answer
Answered in the Assembly Chamber on 13 May 2025. Extract from the Official Report (Hansard), including any supplementary questions:
Dr Archibald
On 30 July, the then Economy Minister announced that the Executive had reaffirmed their commitment to close the non-domestic RHI scheme. That was consistent with the aim in 'New Decade, New Approach' in 2020:
I am committed to a closure arrangement that will ensure fairness to people who entered and participated in the scheme in good faith and, at the same time, achieve fairness and value for money for the public purse. A business case for the closure of the scheme is with the Department of Finance. Subject to the approval of the Department of Finance, Treasury and the Executive, the Department intends to close the scheme through primary legislation, which will provide the powers for the Department to bring forward the closure regulations. Subordinate legislation — regulations — setting out the detail of the closure arrangements will then be subject to consultation. The Department continues to engage with key stakeholders on the design and details of the closure of the scheme, and a proposal will be brought to the Executive for agreement. A consultation will then be launched on the draft regulations that will give effect to the closure arrangements.
Mr Tennyson
I thank the Minister for that answer. Minister, will you give us a timeline for when we can expect to see that primary legislation? What assurances can you give that proposals for closure will command the confidence of the Assembly this time?
Dr Archibald
I thank the Member for his question. I cannot give a precise time frame for approval of the business case. My Department is working at pace with the Department of Finance on progressing that. I am sure that the Member will agree that it is important that that is done appropriately. With the support of the Executive, it is my intention to introduce legislation before summer recess.
Ms Finnegan
Minister, the New Decade, New Approach agreement committed to replacing the RHI scheme with a scheme that more effectively cuts emissions. Is that also being progressed?
Dr Archibald
Yes. With respect to renewable heat in the domestic sector, the Department consulted recently on future support of low-carbon technology in residential properties. That consultation closed on 10 January. The views that were provided will support the Department in the development of policy to inform options regarding the design of and rules and guidance on future support for low-carbon heat, which will include energy-efficient technologies, such as heat pumps. In the non-domestic sector, the Department's focus is on closing the non-domestic RHI scheme in advance of Ofgem's departure.