Select committee: Public Accounts Committee
Conclusion 14
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)
In February 2025, the government announced it had agreed heads of terms for a deal to support Drax that will run from 2027 to 2031. As part of this deal, DESNZ has required Drax to source 100% of its fuel from sustainable sources, rather than the current 70%. DESNZ intends to appoint an independent sustainability adviser to support Ofgem and the Low Carbon Contracts Company to ensure that the assurance process is robust and keeps pace with the science.36 DESNZ recognised that if a target of 100% is set, a “tighter” assurance regime will be required which would require “quite extensive changes to the way we do things now”.37 DESNZ is working on exactly what these arrangements might be, and assured us that “they will be robust and we will include disincentives and penalties if sustainability requirements are not met.” 38 30 Ofgem press release Ofgem closes investigation into Drax Power Limited (29 August 2024) 31 Q 80 32 Ofgem statement Drax investigation and renewables obligation subsidies (12 March 2025) 33 Q 80 34 Ofgem press release Ofgem closes investigation into Drax Power Limited (29 August 2024) 35 Q 5; Ofgem press release Ofgem closes investigation into Drax Power Limited (29 August 2024) 36 Statement by the Secretary of State for Energy Security and Net Zero, UIN HCWS424, 10 February 2025 37 Q 14, 28 38 Q 30 12 Securing the supply of sustainable biomass
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.