MPs in call to halt Drax's 2m-a-day subsidy over sustainability doubts

"Ed Miliband is under pressure from MPs to suspend subsidies worth 2m a day paid to the owner of the Drax power plant in North Yorkshire after court documents cast doubt on the company's sustainability claims. A cross-party group of 14 MPs and peers have called on the energy minister to halt the subsidies for Britain's biggest power plant while the financial watchdog investigates the company's claims about how it sources the millions of tonnes of wood pellets burned to generate electricity."

"The FTSE 250 owner of the Drax power plant gets about 2m a day in renewable energy subsidies, paid by consumers, on the condition it generates electricity from biomass pellets made from waste or low-value wood from sustainable forests. Drax, Britain's single biggest source of carbon emissions, imports millions of tonnes of wood pellets from across the Atlantic every year and is projected to receive 11bn in subsidies by the end of 2027."

"The letter was sent to Miliband after explosive employment tribunal documents revealed that senior executives at Drax had privately raised concerns about the accuracy of its public sustainability claims, after allegations that it was burning wood from some of Canada's most environmentally important woodlands. The letter, signed by MPs and peers from the Labour, Liberal Democrat and Green parties, said: We are deeply concerned that a company should be in receipt of substantial billpayer subsidy, currently guaranteed until 2031, while it may have knowingly and consistently concealed information of material relevance to its legitimacy as a subsidy recipient."

Ed Miliband faces pressure to suspend £2m-a-day renewable subsidies paid to the owner of the Drax power plant in North Yorkshire. A cross-party group of 14 MPs and peers has asked the energy minister to halt payments while the Financial Conduct Authority investigates claims about Drax's sourcing of millions of tonnes of wood pellets. Employment tribunal documents indicate senior executives privately questioned public sustainability assurances after allegations of burning wood from environmentally important Canadian woodlands. Drax receives subsidies conditional on using biomass from waste or low-value wood, imports pellets from across the Atlantic, and is projected to receive £11bn by 2027.

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