Breaking News

Tweet TWEET

Drax Expects Renewable Power Contract After Court Ruling

Drax Group Plc (DRX) said the government plans to award it a second contract for guaranteed power prices after the High Court ruled ministers must reconsider an earlier decision to grant the generator just one rather than two deals.

The Department of Energy and Climate Change in December shortlisted two coal-to-biomass conversion projects by Drax to receive early contracts-for-difference that guarantee the generator a fixed power price. In April it said only one was eligible, despite no changes to Drax’s plans. Drax asked the courts to intervene. A High Court Judge said nine days ago the DECC decision must be quashed.

“DECC has today informed Drax that following the recent High Court judgment, it has, as directed by the court, now completed a reconsideration of the application,” Drax said today in a Regulatory News Service statement. “Following that reconsideration, DECC now intends to award Drax an investment contract for this unit.”

To contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net Will Wade

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.