Renewable heating initiative

The Independent Public Inquiry into the Non-Domestic Renewable Heat Incentive (RHI) Scheme was launched to investigate the serious flaws and administrative failings of the scheme, which led to a significant financial overspend and misuse. Chaired by Sir Patrick Coghlin, the inquiry spanned approximately 24 months, from February 2017 to March 2019. The final report highlighted numerous issues and provided 44 recommendations to prevent similar problems in future government schemes.

The RHI Scheme was introduced in Northern Ireland to encourage the use of renewable energy sources, particularly biomass heating systems, by providing financial incentives to businesses and other non-domestic entities. However, the scheme was poorly designed and administered, leading to unintended consequences and substantial financial implications for the government. The most notable issue was the lack of cost controls, which allowed participants to earn more money than they spent on fuel, resulting in a perverse incentive to use excessive amounts of heat.

The inquiry identified several key factors that contributed to the scheme's failure. One of the primary issues was the inadequate design and planning of the scheme. The Department of Enterprise, Trade and Investment (DETI) failed to properly assess the potential risks and costs associated with the scheme, leading to a lack of appropriate safeguards and controls. Additionally, there was a failure to implement lessons learned from a similar scheme in Great Britain, which had already encountered issues with cost controls.

Another critical factor was the poor governance and oversight of the scheme. The inquiry found that there was a lack of clear lines of responsibility and accountability within DETI and other involved parties. This resulted in ineffective monitoring and enforcement of the scheme's rules, allowing abuses and inefficiencies to go unchecked. The inquiry also noted the impact of political pressures and a culture of complacency within the department, which further exacerbated the issues.

In response to these findings, the RHI Inquiry made 44 recommendations aimed at improving the design, administration, and oversight of future government schemes. Key recommendations included the need for thorough risk assessments, the implementation of robust cost controls, and the establishment of clear lines of responsibility and accountability. The inquiry also emphasized the importance of learning from past experiences and ensuring that political considerations do not unduly influence the management of such schemes.

The RHI Inquiry's findings and recommendations have had a significant impact on the approach to government schemes in Northern Ireland, highlighting the importance of proper planning, governance, and oversight to avoid similar issues in the future.