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Based on these figures it appears that only around 57 applications have been successfully processed and are receiving payments (which hints at a huge backlog of around 543 applications, the majority of which are for biomass).
Ofgem acknowledge the popularity of the scheme and the fact that it is taking longer to process applications than anticipated. Most importantly Ofgem have highlighted the issues they have found with heat metering under the scheme. In response a range of new guidance materials have been made available (see below).
Heat metering issues
Ofgem has conducted a series of early site audits of RHI installations which have revealed significant problems with most installations having errors in their metering arrangements (which need to be rectified before installations can be accredited to the scheme. Common issues identified include:
- Meters are not installed according to manufacturers’ guidance (e.g. the meter orientation is incorrect; the meter is installed too close to a bend; or the meter is installed in the flow pipe when it should have been installed in the return pipe etc).
- More installations qualify as ‘complex’ than as ‘simple’ for the purposes of RHI (meaning often more meters are required than applicants and their advisers might have anticipated).
- Schematics provided for systems to date often lack clarity or fail to adequately reflect the situation on site. This means that it can be difficult for Ofgem to decide whether the heat metering strategy is appropriate for the installation. This results in a need for further clarifications and work for both applicants and Ofgem.
- There are errors and omissions in Independent Reports on Metering Arrangements as well as inconsistencies with other documentation.
In addition to the new guides below Ofgem offers the following key advice:
- Be clear about the triggers which make an installation ‘complex’ for the purposes of the RHI before making an application.
- Ensure that meters can be and are actually installed in accordance with their manufacturers’ instructions.
- Ensure that appropriate documentation is obtained from manufacturers or suppliers and retained by the owner of the installation.
- Provide a schematic which accurately reflects the situation on site, to allow Ofgem to rely upon the meter readings it receives.
- Ensure that Independent Reports on Metering Arrangements are proof-read and checked against other documentation by their authors before submission to Ofgem.
- Ensure that the application is well made, by providing sufficient detail against answers and including all supporting documentation at the outset.
New guidance
- The Renewable Heat Incentive Application Process – An Overview and Key Guidance: Applicant Guidance Note 3 – a 10 page document which provides an overview of the key application steps for the RHI. We strongly advise applicants to review this document, alongside Applicant Guidance Note 2, before starting your application to assist you to submit a full and properly made application. To go direct to the document, use the following link:
- Ofgem E-Serve’s Guide to the RHI Application Form: Applicant Guidance Note 2 – a list of all the questions asked in an RHI application. This will allow applicants to assemble all the information they will need to answer the application questions, before they begin an application.
- Heat Metering Frequently Asked Questions – guidance for applicants and other stakeholders on how to avoid common errors on metering.
- Biomethane presentation to UK Biomethane Day 2012 – a short powerpoint presentation for biomethane producers detailing how they should register for the RHI.
- The heat industry is also shortly to launch a Guide to good practice on heat meters. More information can be accessed via the B & ES website.
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