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 Drax power plant in North Yorkshire, following concerns about the company's sustainability claims. In a letter to Miliband, the politicians expressed deep concern that Drax may have misled ministers and regulators over the source of its wood pellets.
Drax, Britain's largest single source of carbon emissions, receives about £2 million daily in renewable energy subsidies, funded by consumers, on the condition it uses biomass from sustainable sources. The company imports millions of tonnes of wood pellets annually and is projected to receive £11 billion in subsidies by 2027.
The letter was prompted by employment tribunal documents suggesting senior executives had privately raised doubts about the accuracy of Drax's public statements, including allegations that it sourced wood from environmentally important Canadian forests. The Financial Conduct Authority is investigating these claims.
Drax defended its practices, stating that regulator Ofgem found no evidence of misreporting or incorrect subsidy claims. However, the MPs, including Labour's Chris Hinchliff, argued that the allegations are serious and that future contracts should be suspended until the FCA investigation concludes.
