Drax power firm pays £25m penalty over inaccurate data

A power company is to pay a £25m penalty after it was found to have failed to report accurate data on the type of material it burned at its site in North Yorkshire.

The Drax power station, near Selby, which is Britain’s biggest, receives large government subsidies for burning biomass wood chips.

But energy watchdog Ofgem, which had led a 15-month investigation into the firm after it was accused of using wood from unsustainable sources, said Drax had “no excuses” for giving “inaccurate” information.

Drax said there was “no evidence” it had “deliberately misreported” data.

Ofgem carried out its investigation into Drax after the company was accused of burning wood from unsustainable sources and claims it was taking timber from precious rare forests in Canada.

Environmental campaigners have previously criticised the station, which provides about 5% of the UK’s electricity, for its activities and high emissions levels.

On closing its investigation, Ofgem said Drax was found to have lacked the necessary data governance and controls in place.

That meant it did not give the regulator “accurate and robust” data on the type of wood it used at the North Yorkshire site, it said.

But the watchdog did not find any evidence that Drax’s biomass was not sustainable.

Ofgem said Drax would pay £25m to its voluntary redress fund as a result of the findings.

Jonathan Brearley, the regulator’s chief executive, said: “This has been a complex and detailed investigation.

“Energy consumers expect all companies, particularly those receiving millions of pounds annually in public subsidies, to comply with all their statutory requirements.”

Mr Brearley added: “The legislation is clear about Drax’s obligations – that’s why we took tough action.

“Drax has accepted that it had weak procedures, controls and governance which resulted in inaccurate reporting of data about the forestry type and sawlog content being used.”

Drax Group chief executive Will Gardiner said: “Although Ofgem has noted there is no evidence to suggest Drax deliberately misreported its profiling data, we recognise the importance of maintaining a strong evidence base.”

The firm was “continuing to invest to improve confidence in our future reporting”, he said

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