Drax Power: Low Carbon Contracts Company
The question
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 13 January 2026 to Question 102835, under what conditions would a contract be terminated.
Answered by Michael Shanks
Where the generator is found to be non‑compliant with the conditions of public support, enforcement action is available, including the withholding of subsidy and contract termination. The Low Carbon Dispatchable Contract for Difference (LCD CfD) contains various rights of termination for the contract Counterparty (LCCC) in the event the Generator (Drax) breaches key obligations. This includes the ability to terminate the CfD in the event of repeated and material breaches of the sustainability requirements. For the full text setting out the LCD CfD Termination rights, see Termination - Part 12 (p.186) here: Low Carbon Dispatchable Contracts for Difference Terms and Conditions - Low Carbon Contracts. Any such action would be taken on the basis of evidence and in line with the relevant statutory and contractual frameworks.
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