Select committee: Public Accounts Committee
Conclusion 10
22nd Report - Government’s support for biomass
Published 25 Apr 2025
Addressed to HM Treasury
Public Accounts Committee Government support for biomass All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Ofgem explained that the level of oversight is dictated by the size of the generator.17 At present, the largest recipient of financial support for biomass is Drax, the largest biomass electricity generator by some distance.18 While Ofgem did find misreporting in Drax’s 2021–22 annual returns, Ofgem told us that these breaches did not mean that Drax received subsidies 9 C&AG’s Report, para 1.6, 2.8 10 C&AG’s Report, para 1.15 11 C&AG’s Report, para 2.11 12 Q 4 13 Q 4 14 Letter from Drax, 17 March 2025 15 Bio0012, Bio0022 16 C&AG’s Report, paras 12 and 16 17 Q 19 18 C&AG’s Report, para 8 10 to which it was not entitled.19 Ofgem added that the subsidies received by Drax are based on “an enhanced assurance scheme” and that it was “very confident” the funding that Drax received was in line with the current threshold that 70% of woody biomass should be from sustainable sources.20 DESNZ was unable to say whether this would have been the case if a threshold of 100% sustainable biomass, which will apply to Drax and which is being considered more widely, had been in place.21
From: Public Accounts Committee, 22nd Report - Government’s support for biomass (HC 715), 25 April 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Twenty-second Report of Session 2024-26
The government responded to the whole report on 4 June 2026.
Treasury minutes: Government response to the Committee of Public Accounts on the Twenty-second report from Session 2024-25
Published 10 July 2025.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with most of the Committee's recommendations on biomass, with target implementation dates between autumn 2025 and spring 2027, but disagrees on adding BECCS transition clauses to the Drax contract and says the KPMG reports are not a matter for it.
- On assessing its sustainability assurance approach, the government agrees, with a target date of autumn 2025, and says it is reflecting on evaluation and audit processes for the new Drax contract. It states the Ofgem investigation is evidence "the current assurance regime is working well".
- On a new oversight regime, the government agrees (target December 2025) and is "considering options to publish" its sustainability enforcement plans under the new Drax contract. It says any additional Ofgem oversight responsibilities "must be considered in the round".
- The government disagrees with adding clauses to the transitional support agreement to prompt Drax to transition to BECCS. It says such requirements would expose the government to "an unacceptable level of legal risk" until a full assessment of power BECCS is finalised.
- On the KPMG reports, the government says "This is not a matter for the government to consider", as the reports remain Drax's property and it is for Drax to decide whether to release them.