Source · Select Committees · Public Accounts Committee

Recommendation 11

11 Accepted

Concerning non-compliance with sustainability criteria found across numerous biomass power generators.

Conclusion
Ofgem told us that there are 104 biomass power generators with a generating capacity over 1 MW, and which therefore receive the same level of oversight as Drax.22 In the last year, Ofgem found that 17 of these 104 had breached the support scheme’s sustainability criteria.23 While these non–compliant generators accounted for less than 1% of the power generated by biomass as part of the Renewables Obligation scheme, this level of non–compliance is concerning.24 Strengthening the sustainability rules
Government Response Summary
The government believes the Ofgem investigation into Drax and the subsequent redress payment demonstrates that the current assurance regime is working well, and breaches are thoroughly investigated and action taken.
Government Response Accepted
HM Government Accepted
1.5 Moreover, the recent Ofgem investigation into Drax’s sustainability reporting – which led to Drax making a £25 million voluntary redress payment – is evidence that the current assurance regime is working well. Breaches of sustainability reporting under the existing arrangements are thoroughly investigated, and robust action is taken when breaches are found.