FCA opens UK investigation into Drax accounts

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UK markets regulators have opened an investigation into Drax over the UK energy company’s sourcing of wood for biomass pellets following accusations made by a former senior executive.

The FTSE 250 group said on Thursday it had been notified by the Financial Conduct Authority that the agency had begun a probe covering the period from January 2022 to March 2024. It will also cover the company’s annual results for the financial years 2021-23. Drax said it would co-operate with the FCA.

The FCA’s move follows claims from Drax’s former top lobbyist in March that accused the company of “misleading the public, government and its regulator” over its sourcing of wood for biomass pellets, during a claim for unfair dismissal at an employment tribunal.

Earlier this year the UK government confirmed it would continue subsidising Drax’s flagship biomass-fuelled power plant in Yorkshire after its current subsidy arrangement runs out in 2027.

This is a developing story