Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Prior evidence suggests Drax gamed subsidy system, raising doubts about new agreement robustness.
Conclusion
An investigation conducted by Bloomberg in 2022 concluded that Drax may previously have gamed its support to the detriment of consumers. It found that Drax shut down power generation and sold wood pellets on the open market to avoid paying back £639 million of subsidies as wholesale electricity prices spiked. Although DESNZ reassured us that the new arrangements will be more robust, it did not offer any explanation of how it had made sure that there would be no loopholes that allow Drax to continue to game the system.59