The Department for Business, Energy and Industrial Strategy (BEIS) intends to enact the changes closing the Domestic Renewable Heat Incentive (DRHI) through amended legislation due to be laid in Parliament in February 2022, according to Ofgem1. The statement came in a call for input on draft closure guidance published by the regulator on 10 January 2022, which closed to comments on 7 February 20221.
The closure itself was announced by the government in March 2020. The scheme will close to new accreditation and registration applications at midnight at the end of 31 March 20221. Ofgem's draft guidance sets out its proposed administration after closure and the planned changes to the scheme for both new and current applicants1.
"It is our understanding that the Department for Business, Energy and Industrial Strategy (BEIS) intends to enact these changes via amended legislation due to be laid in Parliament in February 2022."
Ofgem consolidated existing guidance into two documents, updated to reflect the government's decisions in its consultation response: a draft Essential Guide and a draft Guide to Metering1. The call for input asked whether the draft guidance was clear, easy to use and free of ambiguous sections, with responses sent to RenewableHeat@Ofgem.gov.uk1. Ofgem said that once it has considered all responses it will publish a brief decision, make any changes to the draft guidance and issue any other relevant accompanying documents1.
The guidance is a working draft based on the decisions communicated by government in its response to consultation1. The call for input follows the March 2020 announcement, and the draft documents were published on a draft-for-comment basis1.
Why it matters for households
The DRHI pays households for heat generated from eligible renewable systems, so the closure date fixes the point after which a home can no longer be accredited for the scheme. For a household that has already joined, the practical question raised by the draft guidance is how the scheme will be administered once it stops taking new applicants, and what changes apply to current participants as well as new ones1. The amended legislation is the mechanism that gives the closure and those changes legal effect, which is why its progress through Parliament matters to anyone with an interest in an accreditation or registration application before the deadline1.
The draft guidance covers metering as well as the general rules, and both documents were issued for comment rather than as final versions1. Ofgem has not published the outcome of the call for input, and the content of the amended legislation has not been reported1.
What happens next
The amended legislation is due to be laid in Parliament in February 20221. The scheme closes to new accreditation and registration applications at midnight at the end of 31 March 20221. Ofgem will publish a brief decision and any changes to the draft guidance after considering responses to the call for input, which closed on 7 February 20221.
Households wanting the wider policy background can read the regulation-policy hub, which covers how DESNZ and its predecessor departments set home energy policy, and the Green Gas Levy vs the Renewable Heat Incentive comparison. Installer and consumer-protection rules for renewable heating are set out under the Renewable Energy Consumer Code (RECC).