The financial watchdog’s decision to investigate the sustainability claims made by the owners of the Drax power plant came as little surprise to Britain’s energy industry. For years the former coal generator has faced a torrent of criticism for collecting billions of pounds in renewable energy subsidies in exchange for burning wood pellets – shipped thousands of miles from North America – at its vast power station in North Yorkshire.
Drax faces allegations that it may have misled investors and the government over the sustainability of its wood sources. In its investigation, the Financial Conduct Authority will in effect follow in the footsteps of the industry regulator, Ofgem, as well as the National Audit Office and the public accounts committee in scrutinising whether the company’s green claims stack up.
