Drax Power Station
The question
To ask the Secretary of State for Energy Security and Net Zero, i) when his Department first saw the statement from Drax's General Counsel made on 12 December 2022 that the company's letter to the Energy Secretary dated 10 October 2022 might not "stand up to further scrutiny"; and ii) what steps he is now taking in light of that statement.
Answered by Michael Shanks
As part of its extensive investigation into Drax’s sustainability reporting, Ofgem considered a range of internal documents concerning the accuracy of public statements around the 2022 Panorama documentary. While the precise documents reviewed are a matter for Ofgem to address as the independent regulator, the government received its final report and is confident in its conclusions.
The new Low-Carbon Dispatchable Contract for Difference with Drax from 2027-31 includes strengthened audit powers for the Low-Carbon Contracts Company to ensure the accuracy of sustainability statements. Drax will be liable for significant penalties via loss of subsidy, and – ultimately – termination of the contract if significant breaches are identified.
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