Ofgem closes probe into Drax reporting data

Drax Group

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Ofgem has closed its probe into the biomass profiling data of Drax after investigating whether or not the power station group failed to meet sustainability criteria of so-called Renewable Obligation Certificates (ROCs).

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The investigation found that Drax had "process gaps" in how it reported profiling data for Canada in the period between April 2021 and March 2022.

However, Ofgem found that this was technical in nature and would not have impacted the level of ROCs earned by Drax.

Nevertheless, Drax said it would pay £25m into Ofgem's voluntary redress fund as a result of the investigation.

Drax chief executive Will Gardiner said the news was “welcome” but said management “recognise[d] the importance of maintaining a strong evidence base and are continuing to invest to improve confidence in our future reporting”.

Some 14% of the biomass delivered to Drax Power Station during the period came from Pinnacle Renewable Energy, the Canadian bioenergy pellet producer which Drax bought in April 2021,

"The group is committed to continued development and improvement of its activities, and since the acquisition of Pinnacle Drax has invested to deliver improvements, which it believes have enhanced its overall reporting," the company said in a statement.