Drax Power Station operator to pay £25m penalty for data-reporting breach
It's after an investigation found it failed to report accurate data
The operator of Drax Power Station near Selby has agreed to pay £25 million after an investigation by energy watchdog Ofgem.
They found it failed to report data adequately after an investigation into the sustainability of the biomass it uses at its wood-burning power plant.
Drax, which receives hefty Government subsidies from burning biomass wood chips, lacked the necessary data governance and controls in place, according to Ofgem.
This meant it did not give the regulator accurate and robust data on the type of wood it uses.
Ofgem did not find any evidence that Drax's biomass is not sustainable or that Drax had been issued renewables obligation certificates (ROCs) incorrectly.
Ofgem said Drax will pay £25 million to its voluntary redress fund as a result of the findings.
Ofgem chief executive Jonathan Brearley said:
"Energy consumers expect all companies, particularly those receiving millions of pounds annually in public subsidies, to comply with all their statutory requirements.
"There are no excuses for Drax's admission that it did not comply with its mandatory requirement to give Ofgem accurate and robust data on the exact types of Canadian wood it utilises.
"The legislation is clear about Drax's obligations - that's why we took tough action.
"Drax has accepted that it had weak procedures, controls and governance which resulted in inaccurate reporting of data about the forestry type and sawlog content being used."
"While Ofgem currently has no reason to believe there have been further instances of non-compliance, we won't hesitate to act if required."
Drax Group chief executive Will Gardiner said:
"Although Ofgem has noted there is no evidence to suggest Drax deliberately misreported its profiling data, we recognise the importance of maintaining a strong evidence base and are continuing to invest to improve confidence in our future reporting."
An Energy Department (DESNZ) spokesman said:
"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 detail of the investigation and subsequent findings are a matter for Ofgem."