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You can find the current article at its original source at https://www.theguardian.com/business/2025/aug/28/drax-investigated-by-uk-watchdog-over-historical-statements-on-biomass-sourcing
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| UK power company Drax investigated over source of ‘renewable’ fuel | |
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| Move by UK watchdog FCA relates to historical statements on wood pellets for power station from January 2022 to March 2024 | |
| Business live – latest updates | Business live – latest updates |
| The power generator Drax has revealed it is under investigation by the City watchdog over “historical statements” made about the sourcing of wood pellets for its biomass power station. | The power generator Drax has revealed it is under investigation by the City watchdog over “historical statements” made about the sourcing of wood pellets for its biomass power station. |
| The Financial Conduct Authority (FCA) confirmed the investigation on Thursday, which will cover a period of more than two years between January 2022 to March 2024, and examine whether the company complied with disclosure and transparency rules, including in three annual reports. | The Financial Conduct Authority (FCA) confirmed the investigation on Thursday, which will cover a period of more than two years between January 2022 to March 2024, and examine whether the company complied with disclosure and transparency rules, including in three annual reports. |
| Drax said on Thursday that the FCA investigation related to “certain historical statements regarding the company’s biomass sourcing and the compliance of Drax’s 2021, 2022 and 2023 annual reports with the listing rules and disclosure guidance and transparency rules. The company will cooperate with the FCA as part of their investigation.” | |
| The regulator said: “We can confirm that the FCA has opened an investigation into Drax Group.” | The regulator said: “We can confirm that the FCA has opened an investigation into Drax Group.” |
| The news sent Drax shares down by 10% in early trading on Thursday. | |
| It comes months after Drax’s former head of public affairs and policy Rowaa Ahmar accused Drax of having made misleading claims over its sourcing of wood for biomass pellets, which were made as part of her claim for unfair dismissal at an employment tribunal. | |
| Drax denied her claims, and reached a settlement with Ahmar a week after the case opened. | |
| Drax was last year found to have supplied inaccurate data for previous government subsidies, leading to a £25m fine. | Drax was last year found to have supplied inaccurate data for previous government subsidies, leading to a £25m fine. |
| Drax is expected to receive more than £10bn in renewable energy subsidies between 2012 and 2027, the current regime period, according to the thinktank Ember. | Drax is expected to receive more than £10bn in renewable energy subsidies between 2012 and 2027, the current regime period, according to the thinktank Ember. |
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| The UK government confirmed earlier this year that it would continue offering new subsidies for Drax’s wood-burning power plant in Yorkshire after the existing subsidy ends in 2027. | The UK government confirmed earlier this year that it would continue offering new subsidies for Drax’s wood-burning power plant in Yorkshire after the existing subsidy ends in 2027. |