Campaigners and an MP are demanding explanations about whether Barry’s controversial incinerator can qualify for a subsidy paid for by energy bill payers.

The Docks Incinerator Action Group says the Biomass UK No2 incinerator in Barry Docks should not qualify for the subsidy provided by Ofgem as their application was based on out-of-date planning permission.

They also say the incinerator, owned by private donors, had to apply for the subsidy by the end of March.

Aviva Investors, on behalf of Biomass 2, declined to comment on the rumours.

But Alun Cairns, MP for the Vale of Glamorgan, has joined the campaigners in demanding answers over the future of the site.

He said: “Having been active on raising concerns on the incinerator since 2011 – I know how concerned residents are, quite rightly, about the impact this is having on this area of Barry and the surrounding area.

“I have written on behalf of residents and campaigners to the chief executive of Ofgem for a clear explanation of actions taken and proposed next steps for what has become a very controversial site in Barry.”

Ofgem says the Barry incinerator holds “preliminary accreditation” for a subsidy which finished last year, but the developer needed to apply for full accreditation and provide evidence that it’s eligible for it.

Before it expired the Renewables Obligation (RO) subsidy was available to energy suppliers which sourced a proportion of electricity from renewable sources.

The subsidy closed to new applications, besides onshore wind and solar schemes, on March 31 last year, but Biomass 2 had a year-long grace period to make a full claim for the money.

But the campaigners believe Biomass 2 was granted a grace period based on planning permission granted in 2010, which is significantly different to the development which has actually been built under another planning permission granted in 2015.

The group has in the past month highlighted activity at the plant including odour and emissions .

A statement from DIAG says: “The plant may have the same name, but it is fundamentally different to the 2010 plant that was granted the grace period – and the law says the grace period is for the plant, not the developer.

“We think this deadline explains Aviva’s rush to build and the noise, light and odour nuisance caused to residents as their developer works 24/7 to get the plant ready.

“And why should billpayers across the country fund what would now be considered an inefficient plant to the tune of millions and millions of pounds? If value for money for billpayers is a priority for the U.K. government, this situation must be investigated and/or explained.”

Biomass 2 has previously said the plant is being tested before it comes fully operational.

But residents have complained about black smoke coming from the site.

Vale of Glamorgan Council says it will install air quality monitors at the site before the end of April to reassure residents.

The council declined to comment further.

Ofgem said it decides subsidy applications on a case-by-case basis.

It also said Biomass 2 could claim another subsidy, Renewables Obligation Certificates (ROCs), if the plant meets renewable energy targets.

An Ofgem spokesman said: “In order to become accredited the operator of the generating station must submit an application to Ofgem with necessary supporting evidence. Ofgem will then, on a case-by-case basis, assess this information against the relevant eligibility criteria.

“If the relevant eligibility criteria are met, which includes a requirement that the station has been commissioned, accreditation must be granted. Similarly, if the criteria for ROC issue are met, ROCs, which are electronic certificates issued by Ofgem, must be issued.

“Ofgem’s role is to assess accreditation applications and the supporting information provided by an operator of a generating station. This assessment is undertaken against the requirements of RO legislation.

“Once Ofgem is satisfied that the relevant criteria have been met, it must grant accreditation and issue ROCs as appropriate. Aside from its assessment processes, Ofgem runs an audit programme and has a dedicated Counter Fraud team.”