Drax to Pay £25 Million Following Ofgem Biomass Probe

Vitality residing operator Drax has agreed to pay £25m after an investigation by energy watchdog Ofgem came accurate via it failed to report recordsdata adequately.

Drax, which receives hefty Govt subsidies from burning biomass wood chips, lacked the required recordsdata governance and controls in residing, in step with Ofgem.

This meant it did no longer give the regulator stunning and sturdy recordsdata on the develop of wood it makes exercise of.

Ofgem did no longer accumulate any evidence that Drax’s biomass is no longer sustainable or that Drax had been issued renewables duty certificates (ROCs) incorrectly.

Ofgem acknowledged Drax will pay £25m to its voluntary redress fund as a results of the findings.

The magnificent comes after an investigation into the sustainability of the biomass it makes exercise of at its wood-burning energy plant, which became self-discipline of a predominant BBC Panorama documentary.

Drax Crew chief govt, Will Gardiner acknowledged: “It is welcome that Ofgem has came accurate via no evidence that our biomass failed to satisfy the sustainability standards of the Renewables Responsibility (RO) method, nor that the ROCs we got for the renewable energy we produced had been supplied incorrectly.”

“Even supposing Ofgem has eminent there might be rarely any such thing as a evidence to counsel Drax deliberately misreported its profiling recordsdata, we recognise the importance of affirming a solid evidence deplorable and are continuing to make investments to make stronger self assurance in our future reporting.”

Ofgem chief govt Jonathan Brearley acknowledged: “This has been a posh and detailed investigation. Energy buyers demand all companies, specifically these receiving hundreds and hundreds of pounds every yr in public subsidies to seem the least bit their statutory requirements. 

“There are no excuses for Drax’s admission that it did no longer be aware its principal requirement to present Ofgem stunning and sturdy recordsdata on the accurate forms of Canadian wood it utilises. The legislation is evident about Drax’s obligations – that’s why we took tricky movement. 

“Drax has accredited that it had aged procedures, controls and governance which resulted in unsuitable reporting of recordsdata about the forestry form and sawlog assert being feeble. It has agreed to receive a indispensable fee of £25m to our voluntary redress fund and discontinue an impartial external audit of its global profiling recordsdata reporting.  

“This report will be submitted to Ofgem for our impartial overview and findings published, so the conclusions are absolutely transparent.? While Ofgem for the time being has no motive to imagine there were extra conditions of non-compliance we won’t hesitate to act if required.” 

A spokesperson for the Department for Energy Security and Secure Zero acknowledged: “We demand full compliance with all regulatory obligations – buyers rightly demand the glorious customary of accountability from generators.

“The scale of the redress fee underscores the robustness of the regulatory system and the requirement that generators abide by both the spirit and the letter of the guidelines.

“The detail of the investigation and subsequent findings are a matter for Ofgem.” 

With contribution from Press Affiliation

By Metropolis AM 

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