Drax to Pay £25 Million to Ofgem

Drax Power Limited has agreed to pay £25 million to Ofgem's Energy Industry Voluntary Redress Fund following an investigation that found the company lacked adequate data governance and controls in its biomass reporting for the compliance period from April 2021 to March 2022. The investigation revealed that Drax misreported data regarding the forestry type and sawlog proportions of Canadian biomass but did not find evidence that it failed to meet sustainability requirements or improperly received Renewable Obligation Certificates (ROCs). In response to the findings, Drax will resubmit its profiling data and undergo an independent audit of its international supply chain data for the period from April 2023 to March 2024. Drax's chief executive acknowledged the importance of improving data reporting practices, emphasizing continued investments to enhance accuracy. Ofgem's chief executive stressed the need for rigorous compliance among companies receiving public subsidies, underscoring Drax's responsibility to provide accurate information. The audit's findings will be made public, ensuring transparency moving forward.