Drax Power: Regulation
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of Ofgem’s ability to scrutinise Drax.
Answered by Michael Shanks
We work closely with Ofgem to seek continuous improvement to scrutiny processes.
Under Drax’s Low-Carbon Dispatchable Contract for Difference from 2027, day-to-day scrutiny of biomass sustainability will be provided by the Low Carbon Contracts Company (LCCC). LCCC will implement significantly bolstered assurance standards, including audits across Drax’s global supply chain, an increased audit sample size, and a raised assurance standard from ‘limited’ to ‘reasonable’. There are also significant financial penalties available should Drax’s compliance fall short.
Ofgem will continue to regulate compliance with Drax’s licence conditions, with the powers to launch investigations and issue fines for breaches.
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