Drax Tumbles Most Since April After Losing Court Ruling
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Drax Group Plc fell the most in 3 1/2 months after the U.K. Court of Appeal ruled one of its power-generating units isn’t eligible for a government contract that pays guaranteed electricity prices for 15 years.
The decision leaves Drax reliant on an older subsidy system called the Renewables Obligation to fund the conversion of one of its six units from burning coal to biomass. That older program has less price certainty than the newer one, known as a contract-for-difference, which Drax had sought.