Renewable Energy Firm to Pay £25M After Ofgem Closes Investigation

Power station operator Drax has agreed to pay £25 million following an investigation by energy regulator Ofgem, which found that Drax failed to report data adequately.

The payment comes after a probe into the sustainability of the biomass used at Drax’s wood-burning power plant, which was featured in a major BBC Panorama documentary.

Ofgem’s investigation revealed that Drax lacked proper data governance and controls, leading to inaccurate reporting of the wood type used in its biomass. However, the regulator found no evidence suggesting that Drax’s biomass was unsustainable or that the company had improperly received renewables obligation certificates (ROCs).

As a result of these findings, Drax will contribute £25 million to a voluntary redress fund.

Drax Group’s CEO, Will Gardiner, commented, “It is reassuring that Ofgem found no evidence of our biomass failing to meet sustainability criteria or of incorrect ROC issuance. While there was no indication of deliberate misreporting, we acknowledge the need for strong data evidence and are committed to enhancing our reporting processes.”

Ofgem’s CEO, Jonathan Brearley, stated, “This has been a thorough investigation. Energy consumers expect all companies, especially those receiving substantial public subsidies, to meet their statutory requirements. Drax’s admission of non-compliance with data reporting requirements is unacceptable. We have enforced a £25 million payment and will require an independent audit of Drax’s global data reporting, with findings published for transparency. Although there’s no evidence of additional non-compliance at this time, we will take further action if necessary.”

Contributed by Press Association

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