The changes to the cost-control mechanisms to RHI are a result of the July 2012 consultation on the Non-Domestic Renewable Heat Incentive: ‘Providing Certainty, improving performance’, with the government’s response announced in February.
The government stated they would implement a degression mechanism to ensure that RHI tariffs fall as deployment for renewable heat technologies increase. Degression triggers have been set out up until March 2015. DECC will make its first degression announcement by 1 June 2013.
The degression mechanism replaces the current interim stand by mechanism that operated for the 2012-13 financial year. The necessary regulatory changes have now been approved by parliament and came into force 30 April 2013.
Ofgem intends to publish revised guidance for the Non – Domestic RHI scheme towards the end of May 2013. This guidance will set out more detail of the changes introduced to the Non – Domestic RHI scheme by these regulations.