Following recent amendments to the Renewable Heat Incentive (RHI) regulations, we must now verify that all biomethane producers claiming Non-Domestic Renewable Heat Incentive (NDRHI) support are complying with their existing obligations to ensure no dual claiming for the same unit of biomethane is taking place under the Department for Transport’s Renewable Transport Fuel Obligation (RTFO).
For us to have sufficient third-party assurance of this, we propose to introduce a further level of validation to our administration processes.
Our preferred option is for all producers to submit independently audited information determining and confirming any NDRHI/RTFO interaction within a new, separate section of the existing Annual Sustainability Audit. As it is important this additional assurance is prepared to an adequate standard, we propose the report be prepared by an independent auditor in accordance with the requirements of limited assurance engagements prescribed in ISAE 3000 (revised) or equivalent.
This consultation seeks feedback on our proposal and proposed draft guidance. We also plan to hold a stakeholder webinar about the consultation on 15 July 2021. A link to the event can be found here.
The period for comments closes on 30 July 2021. Once we have considered all responses, we will publish a brief decision, make any necessary changes to the ‘Non-Domestic Renewable Heat Incentive (NDRHI) Guidance: Volume 2: Ongoing obligations and payments’ guidance, and issue any other relevant accompanying documents.
Please send your responses to RenewableHeat@Ofgem.gov.uk. We also welcome feedback on the clarity and detail of this consultation and draft guidance.