Source · Select Committees · Business and Trade Committee
Recommendation 25
25
Deferred
Mandate Ofgem to thoroughly investigate Drax biomass sourcing and report findings to committee.
Recommendation
The Committee has been concerned to hear reports about alleged misreporting by Drax to Ofgem in order to draw down public funds. We note that Ofgem has started a special audit process. We call on Ofgem to ensure a thorough investigation of the evidence that supported Drax submissions, specifically in respect of the sourcing of wood biomass, and for Ofgem to request access to any internal or independent external audits undertaken at Drax to investigate this issue. We ask Ofgem to report back to the Committee once this investigation has concluded. (Paragraph 127) 104 Decarbonisation of the power sector
Government response summary AI-generated
The government's response details investments in energy efficiency, plans for local energy planning, new consumer advice services, and work on improving EPCs, completely ignoring the committee's call for Ofgem to investigate alleged misreporting by Drax.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
55. [Response provided by Ofgem] Ofgem is investigating whether Drax Power Limited is in breach of annual profiling reporting requirements relating to the Renewables Obligations scheme and other related matters. The opening of this investigation does not imply that Ofgem has made any findings about possible non-compliance by Drax Power Limited. The outcome of the investigation will be published in due course and shared with the Committee. Ofgem is unable to comment on the details of ongoing investigations. Conclusion (Response deemed necessary) The UK’s biomass industry is a diverse sector made up of large-scale power plants through to smaller-scale, more local, generators. The overall costs of large-scale bioenergy power plants, which converted from coal-fired plants, are very expensive and rely heavily on imported feedstocks, which may not be produced sustainably, and which may have significant lifecycle emissions. Existing support schemes for unabated bioenergy are due to end by 2027. We do not believe that the historic allocation of subsidies to large scale biomass, such as Drax, has represented either value for money or the best use of public funds. 56. The use of biomass in energy generation in the UK’s power sector has helped to dramatically reduce the use of fossil fuels- particularly coal. Electricity generators only receive subsidies for the electricity they generate from biomass that has demonstrated compliance with our sustainability criteria. Suppliers must demonstrate to the regulators (Ofgem and LCCC) that they meet the criteria, and their evidence is independently audited. Part of the sustainability criteria (the GHG criteria) requires that biomass used to generate Decarbonisation of the power sector: Government Response 11 electricity does not exceed a set GHG threshold, and includes a minimum percentage lifecycle GHG emission savings, compared to emissions from a fossil fuel comparator for electricity.
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