The facility generator Drax has revealed it’s beneath investigation by the Metropolis watchdog over “historic statements” made in regards to the sourcing of wooden pellets for its biomass energy station.
The Monetary Conduct Authority (FCA) confirmed the investigation on Thursday, which can cowl a interval of greater than two years between January 2022 to March 2024, and look at whether or not the corporate complied with disclosure and transparency guidelines, together with in three annual experiences.
Drax stated on Thursday that the FCA investigation associated to “sure historic statements concerning the corporate’s biomass sourcing and the compliance of Drax’s 2021, 2022 and 2023 annual experiences with the itemizing guidelines and disclosure steerage and transparency guidelines. The corporate will cooperate with the FCA as a part of their investigation.”
The regulator stated: “We are able to verify that the FCA has opened an investigation into Drax Group.”
The information despatched Drax shares down by 10% in early buying and selling on Thursday.
It comes months after Drax’s former head of public affairs and coverage Rowaa Ahmar accused Drax of getting made deceptive claims over its sourcing of wooden for biomass pellets, which have been made as a part of her declare for unfair dismissal at an employment tribunal.
Drax denied her claims, and reached a settlement with Ahmar per week after the case opened.
Drax was final yr discovered to have supplied inaccurate data for previous government subsidies, resulting in a £25m nice.
Drax is anticipated to obtain greater than £10bn in renewable vitality subsidies between 2012 and 2027, the present regime interval, in line with the thinktank Ember.
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The UK authorities confirmed earlier this yr that it might proceed providing new subsidies for Drax’s wood-burning energy plant in Yorkshire after the present subsidy ends in 2027.
