Drax Power Station: Subsidies
The question
To ask the Secretary of State for Energy Security and Net Zero, if he will review subsidies given to Biomass production by Drax.
Answered by Michael Shanks
In August, Ofgem concluded its investigation into Drax’s annual profiling reporting requirements relating to the Renewables Obligation. The investigation identified shortcomings in Drax’s governance and controls related to annual profiling data but found no evidence to suggest that Drax had been issued with subsidies incorrectly.
Following a detailed consultation Government recently announced a Heads of Terms agreement with Drax for support during the period 2027 to 2031 after their existing support ends. This provides best value for consumers compared to alternatives, halves the cost of subsidy and strengthens sustainability requirements.
Full details of the new deal are available here: https://questions-statements.parliament.uk/written-statements/detail/2025-02-10/hcws424
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