Recommendation 13

In August 2024, Ofgem published the outcome of its investigation into Drax.30 It told us that it had reviewed over 3,000 documents as part of its investigation.31 It also reviewed a report by KPMG, commissioned by Drax, which looked at its Canadian supply chain processes and reporting practices, from the forests of Western Canada to the power station in North Yorkshire.32 Ofgem concluded following its review of the KPMG report, that it was “content there were no points of illegality raised in there and no evidence that would suggest that Drax was wrong to receive its subsidies”. It also recognised that the report had been the “subject of intense interest”.33 Ofgem’s wider investigation. It concluded that an absence of adequate data governance and controls had contributed to Drax misreporting data and its inability to provide Ofgem with sufficient data to support a number of its submissions.34 Drax has accepted Ofgem’s findings and is making what Ofgem called a £25 million “redress payment”. Drax is also resubmitting its data for the period under investigation and is completing what Ofgem called “the most comprehensive audit of all of its biomass supply chain”.35