Drax Shares Plunge After U.K. Scraps Climate Levy Exemption
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Drax Group Plc, the utility converting the biggest U.K. coal station to burning wood pellets, plunged to its lowest ever after the government said clean power will have to start paying a climate-change tax.
The stock tumbled 28 percent in London to the lowest since it started trading in 2005. Chancellor of the Exchequer George Osborne said renewable energy that includes power from biomass will no longer be exempt from the Climate Change Levy. He made the comments in his budget statement in Parliament on Wednesday.