A cross-party group of 14 MPs and peers has called on Energy Secretary Ed Miliband to suspend the £2 million-a-day subsidies paid to the owner of the Drax power plant in North Yorkshire, following court documents that cast doubt on the company’s sustainability claims.
In a letter seen by The Guardian, the politicians expressed deep concern that Drax may have knowingly concealed information about the source of wood pellets used to generate electricity, while receiving substantial billpayer subsidies. The Financial Conduct Authority (FCA) is currently investigating the company’s historical statements regarding pellet sourcing.
Drax, Britain’s biggest single source of carbon emissions, imports millions of tonnes of wood pellets from Canada each year. The subsidies, guaranteed until 2031, are conditional on using biomass from sustainable forests. However, tribunal documents revealed that senior executives privately raised concerns about the accuracy of public sustainability claims, amid allegations that Drax burned wood from ancient Canadian forests.
Former head of public affairs Rowaa Ahmar took Drax to an employment tribunal, alleging she was sacked after warning the chief executive in 2022 that the company was misleading the public, government and regulator about pellet sustainability. Drax has denied the allegations, stating that Ofgem found no evidence of deliberate misreporting.
The MPs, including Labour’s Chris Hinchliff, called for all future government contracts with Drax to be suspended during the FCA investigation. They warned that if Drax is found non-compliant, subsidies should stop — even if that spells the end of the plant.
