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To ask the Secretary of State for Energy Security and Net Zero, whether he has asked his new permanent secretary i) if he has read the December 2022 report by the Drax company secretary on whisteblowing allegations ii) if he concluded that there was a cover up and iii) if...
To ask the Secretary of State for Energy Security and Net Zero, whether he has asked his new permanent secretary i) if he has read the December 2022 report by the Drax company secretary on whisteblowing allegations ii) if he concluded that there was a cover up and iii) if...
The Secretary of State has not asked the Permanent Secretary to reach conclusions on matters that are subject to Ofgem’s independent regulatory processes.
Ofgem has confirmed that whistleblower accounts formed part of its extensive 2023-4 investigation into Drax’s compliance with reporting requirements. Its investigation did not find any evidence that Drax had been issued with subsidies incorrectly. Shortcomings were identified in Drax’s data governance and controls related to annual profiling data which are not used for subsidy calculation under the Renewables Obligation. Drax has subsequently made a significant payment of £25m to the Voluntary Redress Fund and improved its policies and procedures around reporting data.
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the adequacy of the candour and transparency of the Drax power station in its dealings with the Government.
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the adequacy of the candour and transparency of the Drax power station in its dealings with the Government.
The Low Carbon Dispatchable CfD signed with Drax sets out consequences in the event Drax have misrepresented information provided to HMG used when agreeing the strike price. This includes the right to revise the strike price or terminate the agreement under certain circumstances.
Ofgem, the independent regulator, found no evidence that Drax had deliberately misled Government or the wider public regarding the adequacy of the company’s procedures for ensuring that biomass is sourced in a sustainable manner.
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 13 January 2026 to Question 102835, under what conditions would a contract be terminated.
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 13 January 2026 to Question 102835, under what conditions would a contract be terminated.
Where the generator is found to be non‑compliant with the conditions of public support, enforcement action is available, including the withholding of subsidy and contract termination. The Low Carbon Dispatchable Contract for Difference (LCD CfD) contains various rights of termination for the contract Counterparty (LCCC) in the event the Generator (Drax) breaches key obligations. This includes the ability to terminate the CfD in the event of repeated and material breaches of the sustainability requirements. For the full text setting out the LCD CfD Termination rights, see Termination - Part 12 (p.186) here: Low Carbon Dispatchable Contracts for Difference Terms and Conditions - Low Carbon Contracts. Any such action would be taken on the basis of evidence and in line with the relevant statutory and contractual frameworks.
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the implications for his policies of the December 2022 report by the Drax company secretary into whistleblowing activity including the transcripts of discussions with Stuart Cotten, Hillary Berger, Richard Fullilove and Tanisha...
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the implications for his policies of the December 2022 report by the Drax company secretary into whistleblowing activity including the transcripts of discussions with Stuart Cotten, Hillary Berger, Richard Fullilove and Tanisha...
DESNZ has not seen and does not hold any such report relating to whistleblowers at Drax. As part of its 2023-4 investigation into Drax, Ofgem considered a broad range of documents and sources, including statements from whistleblowers. Ofgem's investigation was comprehensive and wide-ranging, and found that whilst Drax complied with the sustainability standards, it failed to report data accurately. The detail of any documents considered in this investigation is for Ofgem to comment on as the independent regulator.
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the (a) environmental and (b) ethical standards required for the continued provision of support to Drax.
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the (a) environmental and (b) ethical standards required for the continued provision of support to Drax.
In February 2025, DESNZ concluded a consultation on a “transitional support mechanism for large-scale biomass generators”. This included a comprehensive assessment of sustainability criteria for biomass used in the UK, as well as broader environmental and ethical considerations:
Following this consultation, the new Low-Carbon Dispatchable Contract for Difference (LCD CfD) with Drax, finalised in November 2025, has increased the proportion of biomass that must come from sustainable sources to 100%, tightened the supply chain emissions threshold to 36.6 mgCO2eq/MJ, and excluded material sourced from activities within primary forests and old growth forest areas from receiving subsidy support.
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of Ofgem’s ability to scrutinise Drax.
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of Ofgem’s ability to scrutinise Drax.
We work closely with Ofgem to seek continuous improvement to scrutiny processes.
Under Drax’s Low-Carbon Dispatchable Contract for Difference from 2027, day-to-day scrutiny of biomass sustainability will be provided by the Low Carbon Contracts Company (LCCC). LCCC will implement significantly bolstered assurance standards, including audits across Drax’s global supply chain, an increased audit sample size, and a raised assurance standard from ‘limited’ to ‘reasonable’. There are also significant financial penalties available should Drax’s compliance fall short.
Ofgem will continue to regulate compliance with Drax’s licence conditions, with the powers to launch investigations and issue fines for breaches.
To ask the Secretary of State for Energy Security and Net Zero, whether he will approve arrangements under which electricity generated by Drax from imported wood pellets is used to supply data centres; and what assessment he has made of the carbon and environmental impact of such use.
To ask the Secretary of State for Energy Security and Net Zero, whether he will approve arrangements under which electricity generated by Drax from imported wood pellets is used to supply data centres; and what assessment he has made of the carbon and environmental impact of such use.
The government is committed to ensuring that the UK’s AI infrastructure is developed in a way that is both sustainable and aligned with our net zero ambitions. The Low-Carbon Dispatchable Contract for Difference, covering Drax's generation from 2027-31, requires Drax to request permission should they wish to supply power to a data centre from their biomass units during this period. Should such a request arise, DESNZ, working with the Low Carbon Contracts Company, would assess this on its merits, taking account of security of supply, value for money, and sustainability matters. Without such permission any data centre on the site could not draw power directly from the biomass units during this period. Regardless of the supply arrangements, Drax is contractually obliged to meet enhanced sustainability criteria for their power generation, which include requiring 100% of the biomass used to be obtained from sustainable sources.
To ask the Secretary of State for Energy Security and Net Zero, whether Drax’s current Contract for Difference contains any binding obligations requiring the development and deployment of carbon capture and storage; and what assessment his Department has made of the continued burning of imported wood pellets for electricity generation...
To ask the Secretary of State for Energy Security and Net Zero, whether Drax’s current Contract for Difference contains any binding obligations requiring the development and deployment of carbon capture and storage; and what assessment his Department has made of the continued burning of imported wood pellets for electricity generation...
The current Contract for Difference (CfD) and recently announced Low-Carbon Dispatchable CfD agreements will be in place until 2031 and do not include contractual requirements for the development of carbon capture and storage (CCS) at the site. The focus of the new CfD is ensuring security of supply for the contract duration, and the development of CCS in the future remains under consideration.
The Government published an impact assessment in early 2024 as part of its consultation on support options for large-scale biomass generators. This assessment was consistent with the views of the Intergovernmental Panel on Climate Change (IPCC) which recognise that bioenergy can play a significant role in decarbonising economies, provided policies are in place to mitigate the use of unsustainable biomass.
To ask the Secretary of State for Energy Security and Net Zero, whether the Low Carbon Contracts Company has powers to end Drax’s operations as distinct from withdrawing individual subsidy payments.
To ask the Secretary of State for Energy Security and Net Zero, whether the Low Carbon Contracts Company has powers to end Drax’s operations as distinct from withdrawing individual subsidy payments.
The new Low Carbon Dispatchable Contract for Difference (CfD) with Drax includes powers for the Low Carbon Contracts Company (LCCC) to terminate the contract as the ultimate sanction for serious breaches of generating requirements or sustainability criteria.
To ask His Majesty's Government when they expect to publish their response to the findings of the Competition and Markets Authority's report into the subsidy regime for Drax.
To ask His Majesty's Government when they expect to publish their response to the findings of the Competition and Markets Authority's report into the subsidy regime for Drax.
We welcome the report from the Subsidy Advice Unit (SAU) regarding government support for large-scale biomass generation. This report makes clear that DESNZ has given detailed consideration of how the Low Carbon Dispatchable CfD is in line with the principles within the Subsidy Control Act and relevant environmental regulations.
We have carefully considered the recommendations in the report and the Secretary of State for Energy Security and Net Zero has determined that the subsidy is compliant with the requirements under the Subsidy Control Act. The publication of a response to the SAU report is not required.
To ask His Majesty’s Government what assessment they have made of the environmental credentials of Drax in view of the new investigation by Stand.earth which reported that Drax had purchased logged trees from old growth forests in British Columbia in 2024.
To ask His Majesty’s Government what assessment they have made of the environmental credentials of Drax in view of the new investigation by Stand.earth which reported that Drax had purchased logged trees from old growth forests in British Columbia in 2024.
I have read the report to which the noble Baroness refers with interest, and there are questions both for Drax and for the authors of the report. Compliance with biomass sustainability requirements under Drax’s existing subsidy arrangement is a matter for Ofgem, but we work closely with it to ensure that these arrangements remain fit for purpose. Ofgem’s detailed investigation into Drax in 2024 did not find evidence that unsustainable biomass had been used by Drax, but shortcomings in data governance were identified and Ofgem has required Drax to commission a global supply chain audit, which is currently ongoing.
I have read the report to which the noble Baroness refers with interest, and there are questions both for Drax and for the authors of the report. Compliance with biomass sustainability requirements under Drax’s existing subsidy arrangement is a matter for Ofgem, but we work closely with it to ensure that these arrangements remain fit for purpose. Ofgem’s detailed investigation into Drax in 2024 did not find evidence that unsustainable biomass had been used by Drax, but shortcomings in data governance were identified and Ofgem has required Drax to commission a global supply chain audit, which is currently ongoing.
I have read the report to which the noble Baroness refers with interest, and there are questions both for Drax and for the authors of the report. Compliance with biomass sustainability requirements under Drax’s existing subsidy arrangement is a matter for Ofgem, but we work closely with it to ensure that these arrangements remain fit for purpose. Ofgem’s detailed investigation into Drax in 2024 did not find evidence that unsustainable biomass had been used by Drax, but shortcomings in data governance were identified and Ofgem has required Drax to commission a global supply chain audit, which is currently ongoing.
To ask His Majesty’s Government what assessment they have made of the environmental credentials of Drax in view of the new investigation by Stand.earth which reported that Drax had purchased logged trees from old growth forests in British Columbia in 2024.
I thank the Minister for his reply, which goes a bit further than I expected. Drax specifically claims to stop sourcing from old-growth deferral areas and old-growth management areas in British Columbia, but the majority of old-growth forests fall outside those designations. Will the Minister and the Government suggest to Ofgem that it should not accept Drax’s definition of old growth and perhaps exclude the majority of British Columbia old-growth forests from subsidies?
I thank the Minister for his reply, which goes a bit further than I expected. Drax specifically claims to stop sourcing from old-growth deferral areas and old-growth management areas in British Columbia, but the majority of old-growth forests fall outside those designations. Will the Minister and the Government suggest to Ofgem that it should not accept Drax’s definition of old growth and perhaps exclude the majority of British Columbia old-growth forests from subsidies?
There are two points to make in response to the noble Baroness. The report to which she refers talks only circumstantially about old-growth forests and not old-growth forests that are in any way directly sourced by Drax. As regards the new contract for difference for the next four years that the Government have entered into with Drax, the criterion is now 100% sustainability, which obviously excludes old-growth forests.
There are two points to make in response to the noble Baroness. The report to which she refers talks only circumstantially about old-growth forests and not old-growth forests that are in any way directly sourced by Drax. As regards the new contract for difference for the next four years that the Government have entered into with Drax, the criterion is now 100% sustainability, which obviously excludes old-growth forests.
There are two points to make in response to the noble Baroness. The report to which she refers talks only circumstantially about old-growth forests and not old-growth forests that are in any way directly sourced by Drax. As regards the new contract for difference for the next four years that the Government have entered into with Drax, the criterion is now 100% sustainability, which obviously excludes old-growth forests.
I thank the Minister for his reply, which goes a bit further than I expected. Drax specifically claims to stop sourcing from old-growth deferral areas and old-growth management areas in British Columbia, but the majority of old-growth forests fall outside those designations. Will the Minister and the Government suggest to Ofgem that it should not accept Drax’s definition of old growth and perhaps exclude the majority of British Columbia old-growth forests from subsidies?
My Lords, why is Drax sourcing sustainable wood from abroad when we now have a very intensive tree-planting growth policy in this country? Also, Yorkshire farmers would benefit if we were to go back to sourcing fast-growing willow coppice trees and miscanthus and sending them to Drax to use. Why did we stop doing that?
My Lords, why is Drax sourcing sustainable wood from abroad when we now have a very intensive tree-planting growth policy in this country? Also, Yorkshire farmers would benefit if we were to go back to sourcing fast-growing willow coppice trees and miscanthus and sending them to Drax to use. Why did we stop doing that?
The noble Baroness will know that Drax is the largest single power producer in the UK and is responsible for about 5% of UK power. That means that it uses an enormous amount of biomass in its process, having converted from coal some while ago. The question, then, is where Drax gets its biomass from, bearing in mind that the amount of biomass that is being grown in this country falls far short of the desideratum in terms of sourcing—particularly in view of the length of time that it has taken to grow that biomass. Therefore, sourcing from abroad appears to make some sense, though not necessarily for the long-term future.
The noble Baroness will know that Drax is the largest single power producer in the UK and is responsible for about 5% of UK power. That means that it uses an enormous amount of biomass in its process, having converted from coal some while ago. The question, then, is where Drax gets its biomass from, bearing in mind that the amount of biomass that is being grown in this country falls far short of the desideratum in terms of sourcing—particularly in view of the length of time that it has taken to grow that biomass. Therefore, sourcing from abroad appears to make some sense, though not necessarily for the long-term future.
The noble Baroness will know that Drax is the largest single power producer in the UK and is responsible for about 5% of UK power. That means that it uses an enormous amount of biomass in its process, having converted from coal some while ago. The question, then, is where Drax gets its biomass from, bearing in mind that the amount of biomass that is being grown in this country falls far short of the desideratum in terms of sourcing—particularly in view of the length of time that it has taken to grow that biomass. Therefore, sourcing from abroad appears to make some sense, though not necessarily for the long-term future.
My Lords, why is Drax sourcing sustainable wood from abroad when we now have a very intensive tree-planting growth policy in this country? Also, Yorkshire farmers would benefit if we were to go back to sourcing fast-growing willow coppice trees and miscanthus and sending them to Drax to use. Why did we stop doing that?
My Lords, the Minister’s own department is consulting on sustainability criteria for biomass as we speak, which will inform future subsidy eligibility and reporting requirements for the rest of the market. In addition, the Financial Conduct Authority is still investigating Drax’s biomass sourcing statements. What safeguards have been built
into the new Drax contract that covers 2027-31? Will the results of these two inquiries produce changes to the terms of the recently signed Drax contract?
My Lords, the Minister’s own department is consulting on sustainability criteria for biomass as we speak, which will inform future subsidy eligibility and reporting requirements for the rest of the market. In addition, the Financial Conduct Authority is still investigating Drax’s biomass sourcing statements. What safeguards have been built
into the new Drax contract that covers 2027-31? Will the results of these two inquiries produce changes to the terms of the recently signed Drax contract?
I cannot assure the noble Baroness that terms will be changed during the new contract. However, the LCCC will be responsible for making sure that the 100% sustainability criteria that have been entered into in the new contract will be strictly observed. That is a substantial step forward from the previous oversight arrangements.
I cannot assure the noble Baroness that terms will be changed during the new contract. However, the LCCC will be responsible for making sure that the 100% sustainability criteria that have been entered into in the new contract will be strictly observed. That is a substantial step forward from the previous oversight arrangements.
I cannot assure the noble Baroness that terms will be changed during the new contract. However, the LCCC will be responsible for making sure that the 100% sustainability criteria that have been entered into in the new contract will be strictly observed. That is a substantial step forward from the previous oversight arrangements.
My Lords, the Minister’s own department is consulting on sustainability criteria for biomass as we speak, which will inform future subsidy eligibility and reporting requirements for the rest of the market. In addition, the Financial Conduct Authority is still investigating Drax’s biomass sourcing statements. What safeguards have been built
into the new Drax contract that covers 2027-31? Will the results of these two inquiries produce changes to the terms of the recently signed Drax contract?
My Lords, the Minister appears to be completely unaware that “Panorama” proved conclusively two or three years ago that Drax does indeed burn old-growth forests. However, the new agreement that the Government have negotiated with Drax for 2027-31 will require Drax not to burn wood from primary or old-growth forests and to enhance the system for an independent audit to monitor compliance with that obligation. What will the sanctions be if Drax is non-compliant?
My Lords, the Minister appears to be completely unaware that “Panorama” proved conclusively two or three years ago that Drax does indeed burn old-growth forests. However, the new agreement that the Government have negotiated with Drax for 2027-31 will require Drax not to burn wood from primary or old-growth forests and to enhance the system for an independent audit to monitor compliance with that obligation. What will the sanctions be if Drax is non-compliant?
If Drax is non-compliant, the subsidy goes. There is no subsidy in the case of a non-compliant organisation of any kind. If that happens, it will be the end of Drax.
If Drax is non-compliant, the subsidy goes. There is no subsidy in the case of a non-compliant organisation of any kind. If that happens, it will be the end of Drax.
If Drax is non-compliant, the subsidy goes. There is no subsidy in the case of a non-compliant organisation of any kind. If that happens, it will be the end of Drax.
My Lords, the Minister appears to be completely unaware that “Panorama” proved conclusively two or three years ago that Drax does indeed burn old-growth forests. However, the new agreement that the Government have negotiated with Drax for 2027-31 will require Drax not to burn wood from primary or old-growth forests and to enhance the system for an independent audit to monitor compliance with that obligation. What will the sanctions be if Drax is non-compliant?