Energy regulator Ofgem has launched an investigation into whether power company Drax has breached reporting requirements.
A statement from the watchdog says the action did not imply it had made any findings about possible non-compliance. The short statement read: "We are investigating whether Drax Power Limited is in breach of annual profiling reporting requirements relating to the Renewables Obligation scheme and other related matters. The opening of this investigation does not imply that we have made any findings about possible non-compliance by Drax Power Limited."
News of the move sent the FTSE 250 firm's share pricing tumbling before it recovered throughout the day to 3.9% down on the opening price. Drax issued a statement to the market in which it pointed to separate confirmation from Ofgem that it had not found non-compliance that would affect its ability to receive Renewable Obligation Certificates (ROCs) - the mechanism used to incentivise renewable energy generators.
