DECC announced yesterday the following in connection with the RHI:

As you will be aware, DECC was planning to launch the Renewable Heat Incentive (RHI) for non-domestic generators on 30 September 2011. State Aid approval is a necessary condition for the scheme to go ahead. As part of that process, the European Commission has expressed concerns that the large biomass tariff is set too high.  We understand that the Commission has given state aid approval for the RHI, subject to a reduction in the large biomass tariff and we expect to receive written confirmation of this very soon.

Changing the large biomass tariff will require the RHI regulations to be amended and submitted to Parliament for approval.  We are unable to launch the scheme as a whole until this process has been completed. Therefore, unfortunately, we will not be able to open the scheme for applications on 30 September 2011 as we had originally planned.

Once we have received written confirmation from the Commission, we will make a further announcement about what this means for the large biomass tariff and the timing of the launch.  We are committed to launching the scheme as soon as possible to minimise disruption to stakeholders.

DECC are expecting to receive a formal letter from the European Commission on state aids either today or early next week. They will then make an announcement on the next steps. We will continue to keep you updated.

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