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Select Committee · Public Accounts Committee

Government support for biomass

Status: Closed Opened: 4 Feb 2025 Closed: 16 Jun 2025 2 recommendations 23 conclusions 1 report

Over £20bn in support for businesses and households using biomass (such as plants or food waste) for fuel has been provided by Government since 2002. In combination with carbon capture, usage and storage , the Government is relying on the use of biomass to make a significant contribution to reaching its legally-mandated target of reaching …

Clear

Reports

1 report
Title HC No. Published Items Response
22nd Report - Government’s support for biomass HC 715 25 Apr 2025 25 Responded

Recommendations & Conclusions

2 items
3 Conclusion 22nd Report - Government’s support for … Rejected

Include clauses in Drax's transitional support agreement to prompt BECCS transition.

We are not convinced the transitional support agreement between DESNZ and Drax provides good value for money for consumers. Government announced in February 2025 that it had agreed heads of terms for a deal to support Drax that will run from 2027 to 2031. The new support package means Drax …

Government response. The government disagrees with the recommendation, stating the proposed Drax contract prioritized secure, low-cost electricity supply over BECCS transition. It argues that including BECCS contractual requirements would expose the government to unacceptable legal and cost risks before a full assessment …
HM Treasury
20 Conclusion 22nd Report - Government’s support for … Rejected

Bilateral Drax agreement raises value-for-money concerns due to high subsidy rates.

Despite the new terms of the agreement, there are risks that the support will not offer consumers value for money. The agreement was reached through bilateral negotiations with Drax and included no element of competition.56 While the government claims that the new arrangements will reduce consumer subsidies to Drax, it …

Government response. The government disagrees, stating that the proposed contract with Drax was intended to secure electricity supply at the lowest cost without the cost of procuring this via the Capacity Market auction, and the CfD framework cannot bind generators to investment …
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
3 Mar 2025 Ashley Ibbett · Department for Business, Energy and Industrial Strategy, Dr Sarah Redwood OBE · Department for Energy Security and Net Zero, Jeremy Pocklington · Ministry of Defence, Jonathan Brearley · Ofgem, Jonathan Brearley · Department for Energy Security and Net Zero, Kiera Schoenemann · Ofgem View ↗

Correspondence

5 letters
DateDirectionTitle
15 Dec 2025 To cttee Letter from the Permanent Secretary at the Department for Energy Security and N…
15 Dec 2025 To cttee Letter from the Chair to the Permanent Secretary at the Department for Energy S…
15 Dec 2025 To cttee Letter from the Permanent Secretary at the Department for Energy Security and N…
27 Mar 2025 To cttee Letter from the Chief Sustainability Officer at Drax relating to providing help…
27 Mar 2025 To cttee Letter from the Permanent Secretary of the Department for Energy Security and N…