Renewable Heat Incentive scandal

The Renewable Heat Incentive scandal (RHI scandal), also referred to as RHIgate^[1] and the Cash for Ash scandal,^[2] is a political scandal in Northern Ireland that centres on a failed renewable energy (wood pellet burning) incentive scheme that has been reported to potentially cost the public purse almost £500 million.^[3] The plan, initiated in 2012, was overseen by Arlene Foster of the Democratic Unionist Party (DUP), the then-Minister for Enterprise, Trade and Investment. Foster failed to introduce proper cost controls, allowing the plan to spiral out of control.^[3] The scheme worked by paying applicants to use renewable energy. However, the rate paid was more than the cost of the fuel, and thus many applicants were making profits simply by heating their properties.^[3]

The political scandal first came to light in November 2016, by which point Foster had become Northern Ireland's First Minister. Foster refused to resign or stand aside during any inquiry, saying that to do so would be seen as admitting to some culpability in the matter.^[4]

The affair ultimately caused Sinn Féin's Martin McGuinness to resign in protest as deputy First Minister of Northern Ireland in January 2017 after ten years in office, citing Foster's refusal to stand aside from her role while an investigation took place, among other matters.^[5] In the power-sharing government, McGuinness' resignation also meant that Foster was removed from her role as First Minister, which in turn caused the Executive Office of Northern Ireland to collapse for the subsequent three years.

On 16 January 2017, Sinn Féin refused to re-nominate a deputy First Minister in protest at what they called the "arrogance and disrespect of the DUP", thereby triggering a snap election.^[6] The Northern Ireland Executive collapsed and the Northern Ireland Assembly was dissolved on 26 January 2017. The 2017 Northern Ireland Assembly election was held on 2 March, but did not lead to formation of a new Executive. On 11 January 2020, after having been suspended for almost three years, the parties reconvened on the basis of the New Decade, New Approach agreement proposed by the Irish and UK governments. An inquiry into the affair commenced on 1 February 2017 and issued its report on 13 March 2020.^[7]