AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Ofgem has concluded its investigation into the biomass profiling data of Drax (LSE:DRX), focusing on whether the power station group met the sustainability criteria for Renewable Obligation Certificates (ROCs). The probe identified "process gaps" in how Drax reported biomass data for Canada between April 2021 and March 2022. However, Ofgem determined that these issues were technical and did not affect the ROCs that Drax earned.
Despite the investigation's findings, Drax has pledged £25 million to Ofgem's voluntary redress fund. This decision reflects the company's commitment to addressing the concerns raised during the investigation.
Will Gardiner, chief executive of Drax, expressed relief at the conclusion of the probe but emphasized the importance of maintaining rigorous standards in data reporting. The company is actively working to enhance the reliability of its reporting processes to ensure future compliance.
During the investigation period, 14% of the biomass supplied to Drax Power Station came from Pinnacle Renewable Energy, a Canadian bioenergy pellet producer acquired by Drax in April 2021. Since the acquisition, Drax has focused on improving its operations and reporting systems. The company believes that these improvements have strengthened its overall reporting capabilities.
Drax's statement underscores its ongoing commitment to developing and enhancing its practices. The company has made significant strides since acquiring Pinnacle and continues to implement measures aimed at bolstering confidence in its reporting and operational processes.
Overall, the resolution of the investigation and the commitment to the redress fund highlight Drax's dedication to compliance and transparency, even in the face of technical issues identified during the review.
