Forecasted RHI degression

Expenditure

The medium non-domestic biomass expenditure has risen to £165.2m. This is an increase of 434% compared to the last quarterly assessment. As the tariff was degressed by 10% last quarter (5% from the individual trigger and 5% from the total trigger), this means that the medium biomass tariff will be degressed by 5% if it grows less than 50%, 10% if it grows between 50%-150%, and degressed by 15% if it grows by more than 150%. The WHA forecasts that the degression that will hit the biomass sector on October 1, 2017 will more likely be by 15%.

The small non-domestic biomass expenditure has risen to £151.8m, which is an increase of 18% compared to the last quarterly assessment. As the tariff was degressed by 5% last quarter (5% from the total trigger), the small biomass tariff will be degressed by 5% if expenditure stays below £162.5m, and degressed by 10% if expenditure rises above £162.5m. According to the WHA, it seems very likely that it will be degressed by 5% on October 1, 2017.

The domestic biomass expenditure has risen to £39.54m, which is £0.46m higher than last quarter. To trigger a degression, the expenditure has to increase by £3.6m, which is unlikely at present, and a degression is therefore unlikely for the domestic biomass tariff and any other domestic tariffs on October 1, 2017.