FAQs

No; bizarrely agents are not allowed (though they are for the FITs and the RO).

Chapter 2 of the government's RHI announcement says

Agents not allowed

We do not intend to allow agents, such as installers, suppliers or other third parties, to apply for support from the scheme on an applicant’s behalf.

We appreciate that agents were allowed under the Renewables Obligation (RO) and some have argued they should be allowed for the RHI, however we do not believe it is necessary. The original purpose of allowing agents under the RO was to help small-scale participants deal with some of the complexities of that scheme. The RO was primarily designed for large scale generators and small-scale generators often struggled to deal with trading small numbers of renewable obligation certificates (ROCs); the RHI scheme should be more straightforward and the more complex information at the smaller scale can be provided by the certified installer.

Enabling agents to apply on a organisation’s behalf would add complexity to the administrative arrangements and cost of the scheme.

These will have to be notified to Ofgem. You may even lose your tariffs.

Chapter 2 of the government's RHI announcement says

Changes to installations

Where changes are made to an accredited installation, for example, where a participant adds additional heating equipment, the participant will need to inform and provide information to Ofgem, who will then decide whether the installation still meets the eligibility criteria.

Yes they can, though this is only intended to apply to larger systems.

Chapter 2 of the government's RHI announcement says

Preliminary accreditation

We intend to allow applicants to apply for preliminary accreditation. In practice this would mean that an organisation can submit plans and evidence demonstrating that, once built, an installation would meet the eligibility criteria of the scheme. If Ofgem is satisfied that all eligibility criteria would be met, it would then grant preliminary accreditation. Providing that the installation is then built in line with the plans submitted, or, where changes are made, Ofgem is satisfied that the project still meets the eligibility criteria, the installation would then be granted full accreditation.

We think this could help provide extra certainty for investors that a future installation would receive support under the RHI once built, which in turn can help secure the financial investment needed to get the installation built. The appropriate tariff level will be set at the point at which full accreditation is granted and not at the point of preliminary accreditation.

Preliminary accreditation should not be necessary for simple installations, so we will consider setting a threshold for where it may be sought. This will be set out in the regulations underpinning the scheme.

Yes; you will also need to satisfy Ofgem that you can meet the ongoing metering, heat use, bioenergy (where applicable) and maintenance requirements.

Chapter 2 of the government's RHI announcement says under:

Accreditation

The applicant must also meet the ongoing obligations required under the scheme. In practice this will be dealt with through the application process. Once Ofgem is satisfied that all eligibility criteria have been met and the applicant will comply with the ongoing obligations of the scheme, it will then accredit the installation and the applicant will become a participant in the scheme; at this point the participant will become eligible for support.

The general requirements are given here. At the same time the applicant will need to satisfy Ofgem that they can meet the ongoing requirements.

Most systems below 45kWth will be accredited under the MCS. Larger ones are directly accredited by Ofgem.

There will also be provisions to pre-accredit installations.

Chapter 2 of the government's RHI announcement says

Accreditation

In order to receive support under the RHI tariff scheme an installation will have to be accredited. Accreditation is the process of Ofgem determining whether an installation meets the eligibility criteria of the scheme. In order to gain accreditation of an installation, an applicant will have to demonstrate that an installation meets all the appropriate eligibility criteria.

You will be able to apply on-line, by mail or by phone.

Chapter 2 of the government's RHI announcement says

Online application

In the majority of cases we expect people to apply online. For those with internet access this should represent the quickest way to accessing support, as well as providing the most efficient and cost-effective way of processing applications.

However, while we will encourage online applications, applicants will also be able to apply in writing or by phone. For either approach, we will work with Ofgem to ensure support is available online, on the phone and in written guidance. Ofgem will publish details on when organisations may apply for support online once the scheme is introduced.

The government would like to think so (see below).

However you need to prove that you meet all the eligibility criteria, the installation is accredited, you are metering the output correctly and can provide the necessary ongoing support, so it's really quite complex.

We are considering providing a service to help.

Chapter 2 of the government's RHI announcement says

User-friendly

We will work closely with Ofgem to ensure that the application process is user-friendly. The process will be straightforward and easy to follow, particularly as many RHI applicants will be non-energy professionals. This is something that stakeholders have argued is critical and we agree.

You have to register with Ofgem - the scheme administrator.

They say this system will be 'user-friendly'. We're not so sure and may be able to help.

Chapter 2 of the government's RHI announcement says

Applying for support

Organisations that want to receive RHI tariffs will need to apply to Ofgem directly. Guidance on the application process for support will be set out in detail ahead of the introduction of the scheme by Ofgem.

Chapter 2 of the government's RHI announcement says

Owner

The word ‘owner’ has its standard meaning, so the owner of an installation will be the person with exclusive rights and liabilities in respect of that installation. The owner will therefore usually be the person who purchased and paid for the installation of the equipment.

However, where a hire purchase agreement, conditional sale agreement or other similar arrangement has been entered into to cover the cost of purchasing and installation, the legislation provides that the individual in possession of the plant under that agreement is the ‘owner’ and the payment would therefore be made to the recipient of the loan, despite the fact that the terms of the loan agreement may provide that they are not legal owner.

There may be situations where the owner is not the person operating the equipment. In such cases, where the owner retained all rights and liabilities, including maintenance of equipment, the RHI payments would be paid to that owner.

Whatever it takes to confirm compliance and eligibility - and quite a lot more besides!

Chapter 8 of the government's RHI announcement says

Data collection

Both as part of their application process and during subsequent reporting on, for example, fuel measurement and sustainability, RHI participants will be required to provide Ofgem with data. The data collected will include:

• Type of installation;
• Cost of installation;
• Amount of heat generated;
• The type of heating that the RHI participant is switching from;
• Demographic information (e.g. location); and
• Information on fuels used by large generators and their sustainability

This data will be used by DECC to monitor the effectiveness of the RHI scheme in terms of its contribution towards our renewables targets. It will also be passed, where appropriate, to the Devolved Administrations to allow them to track their progress against their own renewables targets.

The data will also be used to predict funding costs for the scheme and to track fuel sustainability trends. Data Protection principles will be applied to the use of this data to ensure that commercial confidentiality isn’t breached and consideration will be given to ensuring that the burden of data provision on participants isn’t excessive.

The installer could then be in trouble. ... but it looks as if the customer is stuffed!

Chapter 8 of the government's RHI announcement says

Certified installers

At the smaller scale, only MCS or equivalent certified equipment, which is installed by MCS or equivalent certified installers, will be eligible for support under the RHI. There is a risk that installers could breach the conditions of the scheme, for example, by incorrectly declaring that the equipment they’ve installed meets the eligibility requirements, which could mean the customer is not eligible for RHI support.

If a certified installer is found to be breaking the rules of the RHI, we expect the relevant certification body to take action against them. This could include them losing their certification status, which would have a significant financial and reputational impact on their business. Such breaches may also fall foul of consumer protection law.

This will be available from Ofgem.

Chapter 8 of the government's RHI announcement says

Compliance guidance

Ofgem will publish compliance guidance, setting out its approach to auditing, inspection and enforcement. This will outline the circumstances in which it is likely to want to verify information, carry out inspections or take more formal action such as imposing a sanction. It will include details of the sanctions that it may impose and the factors taken into consideration when deciding what action to take.

Nothing very meaty - see below:

Chapter 8 of the government's RHI announcement says

Complaints

In addition to appeals against the specific decisions as described above, participants may also wish to complain about Ofgem where it is not satisfied with the way it has behaved more generally and not necessarily in relation to a specific decision. Ofgem has existing complaints processes, which we intend to utilise. Where a person has followed this route and is not satisfied, they may complain to the Parliamentary Ombudsman who can decide whether to carry out an investigation.

There is an internal review process.

Chapter 8 of the government's RHI announcement says

Internal Review

Imposing one of the sanctions described above could have a significant impact upon a person or business, who may have invested a large amount of money on an installation. It is therefore important that there are procedures in place that enable a review of Ofgem’s decisions.

Where Ofgem imposes a sanction, it will be required to inform the person of the decision within a specific time-frame. It must also provide reasons for the decision and outline any available review procedure. Where appropriate, Ofgem will also be required to outline any steps that the person must take towards compliance.

An internal review process will be established in relation to sanctions imposed by Ofgem in its role as administrator of the scheme. We will work with Ofgem to ensure that the internal review process is straightforward and user-friendly, to ensure it is accessible to all.

Some stakeholders have suggested that appeals should be heard by a body or panel independent of Ofgem, as they were concerned that an internal appeal would mean Ofgem hearing an appeal against its own decision. While we appreciate the points made, we feel the extra layer of process and the cost of setting up such a body is unnecessary given the nature of the powers available to Ofgem. We are confident that the internal review process provided with the ultimate backup a judicial review of a decision is sufficient.

Not specifically - the normal recourse in law would be pursued.

Chapter 8 of the government's RHI announcement says

Prosecution

Deliberate attempts by participants to gain financially by providing false information could constitute fraud and will be dealt with accordingly. Where Ofgem believes fraud has occurred it will be able to report such cases to the relevant authorities who will decide whether or not to prosecute. Fraudulent activity risks undermining the credibility of the scheme and would mean government money is wasted. It is crucial therefore that for the most serious and deliberate attempts to cheat the system are tackled with the full weight of the criminal law and that a clear message is sent out that fraud will not be tolerated.

Yes in certain cases.

Chapter 8 of the government's RHI announcement says

Power to exclude participants

There will also be the power to exclude a participant from the scheme. Where non-compliance has been serious or repeated, Ofgem may take the decision that the participant should no longer receive payments. Once excluded, the person will not be eligible for any further RHI payments in respect to the installation in question.

Ofgem will also have the power to exclude any other installations owned by the participant, which are also receiving support under the RHI and prohibit them from re-joining the scheme. This will be a discretionary power, which Ofgem would only use in the most serious cases.

To start with, it will send a (non-)compliance note specifying what needs to be done.

Chapter 8 of the government's RHI announcement says

Compliance notice

Ofgem will be able to issue a compliance notice to a participant as a warning that they have broken the rules of the scheme. Where appropriate the letter will also outline any action the participant should take to remedy the failure and state the possible consequences of the participant failing to put right the non-compliance or repeating it.

They might.

Chapter 8 of the government's RHI announcement says

Inspections

Ofgem or agents authorised on its behalf, will also carry out on-site inspections of installations, where it is concerned that one or more of the eligibility criteria are not being met and to ensure compliance generally with the RHI scheme. Inspection is a key means of both identifying non-compliance and preventing it. Knowing that a site could be inspected at any time will help deter participants from breaking the rules, where they might otherwise have been tempted to.

Where a participant unreasonably refuses Ofgem access to the installation or is uncooperative or obstructive during an inspection, they could be deemed to be failing to meet the terms and conditions of the scheme. This could result in the participant being subjected to one of the various sanctions within the RHI scheme, including exclusion.

You bet. There will be annual declarations and maybe more.

Chapter 8 of the government's RHI announcement says

On-going checks

In addition to the up-front checks, participants will also be required to provide information and confirm that they are still meeting the relevant rules and will do so for the duration of their participation in the scheme.

In addition to the regular annual declaration, Ofgem will be able to make ad hoc requests for information where it is concerned or suspicious that one or more of the eligibility criteria are not being met or as part of a random or targeted audit.

Yes all participants will have to submit an annual declaration.

Chapter 8 of the government's RHI announcement says

On-going checks

Participants in the scheme will be asked to complete an ‘annual declaration’. This will help ensure that participants are reminded of the eligibility criteria of the scheme and will provide a positive declaration that they continue to meet the eligibility criteria, which will help prevent participants claiming they had forgotten about a particular requirement and will provide a clearer basis on which Ofgem can take more formal action should it be necessary at a later stage.

The applicant will be required to provide sufficient detail for Ofgem to check that it meets the eligibility criteria.

Chapter 8 of the government's RHI announcement says

Accreditation checks

When applying for support, applicants will be asked to declare that their installation meets the eligibility criteria for the scheme and in certain cases will be asked to provide evidence. For example, details of the MCS or equivalent certified installer and equipment; details of the meter specification and schematic diagrams of the installation.

Well this website for a start.

Ofgem will publish and maintain guidance notes on the administration of the scheme.

This is the government's contribution from Chapter 8 of the RHI announcement:

Guidance

Guidance will play a key role in ensuring the eligibility criteria are met, by providing participants with information on what is allowed so that they are clear of their obligations.

Apart from the usual legal sanctions, non-compliant participants can have payments withheld or be excluded from the scheme.

Chapter 8 of the government's RHI announcement says

Tackling non-compliance

Ensuring compliance with the conditions of the scheme can be dealt with in a number of ways, including: advice and guidance; up-front checks when assessing applications for support; on-site inspections; and ultimately, through formal sanctions, such as reducing payments or in the most serious cases, excluding a participant from the scheme and seeking prosecution.