Drax Power Station: Subsidies
The question
To ask the Secretary of State for Energy Security and Net Zero, If he will delay announcing subsidy decisions on Drax until after he has received Ofgem’s report on the compliance of Drax with sustainability rules during the last financial year.
Answered by Michael Shanks
The Government only supports sustainable biomass and generators only receive subsidies for biomass that complies with our criteria.
The results of Ofgem’s investigation into Drax’s compliance with biomass sustainability criteria was published in August 2024 and can be found here, https://www.ofgem.gov.uk/publications/ofgem-decision-investigation-drax-power-limited) . Ofgem found that whilst Drax complied with sustainability standards, it had failed to report data accurately. Drax’s misreporting is a serious matter and Government expects full compliance with all regulatory obligations. Drax’s £25 million redress payment underscores the robustness of the regulatory system. No decision has been taken as to whether transitional support arrangements will be introduced for relevant biomass generators when their current subsidies end.
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