North Yorkshire power station Drax to pay £25m over inaccurate data after Ofgem investigation

Power station operator, Drax, has agreed to pay £25 million after an energy watchdog found it submitted inaccurate data.

Ofgem found it failed to report data adequately after an investigation into the company's profiling data, which is characterising where the biomass comes from.

A former coal-fired power station, Drax is now the UK's largest biomass generator.

Biomass involves burning wood or plants to create heat, transport fuel or electricity, and Biomass generators have become a key part of the government's drive to meet climate targets.

The power plant in, Selby, North Yorkshire receives hefty Government subsidies from burning biomass wood chips.

Ofgem said it lacked the necessary data governance and controls in place, meaning it did not give the regulator accurate and robust data on the type of wood it uses.

However, they did not find any evidence that Drax's biomass is not sustainable or that Drax had been issued renewables obligation certificates (ROCs) incorrectly.

The investigation did not find any evidence suggesting that Drax does not meet the government's threshold that a minimum of 70% of biomass must come from sustainable sources in order to receive scheme funding.

The watchdog's Chief Executive, Jonathan Brearley, said there is "no excuse" for Drax's inaccurate data submission.

"This has been a complex and detailed investigation. Energy consumers expect all companies, particularly those receiving millions of pounds annually in public subsidies, to comply with all their statutory requirements.<

"The legislation is clear about Drax's obligations - that's why we took tough action."

Drax will now pay £25 million to its voluntary redress fund as a result of the findings.

The fund is used to help charities support vulnerable energy customers.

A spokesperson for the Department for Energy Security and Net Zero welcomed the findings.

"We expect full compliance with all regulatory obligations – consumers rightly expect the highest standard of accountability from generators.

The size of the redress payment underscores the robustness of the regulatory system and the requirement that generators abide by both the spirit and the letter of the regulations."

The power plant has faced continued criticism over the sustainability of its wood-burning power generation business.

Green groups argue the practice it is not a renewable form of energy generation and that pellet production can contribute to deforestation.

Earlier this month, 22 climate campaigners were arrested at a protest over claims the power plant is the UK’s largest single source of carbon emissions.

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