Drax Power: Disclosure of Information
The question
To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential merits of reclaiming any portion of the subsidies provided to Drax Power Limited, in the context of the finding by Ofgem that Drax had misreported data in relation to their annual profiling submission between 1 April 2021 and 31 March 2022, published on 29 August 2024.
Answered by Michael Shanks
Compliance with biomass sustainability criteria is a priority and Ofgem as the independent regulator is responsible for ensuring generators’ compliance. Ofgem’s recent investigation found that whilst Drax complied with sustainability standards, it had failed to report data accurately. This is a serious matter and Government expects full compliance with all regulatory obligations. Ofgem did not find any evidence to suggest that Drax had been issued with subsidies incorrectly. Drax’s subsequent £25 million redress payment underscores the robustness of the regulatory system.
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