Drax Power Limited: Ofgem Investigation

Baroness Jones of Moulsecoomb Excerpts

Monday 11th November 2024 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, first, it is not for Ministers to tell Ofgem how to regulate; we have to rely on its rigorous approach. Secondly, in the US and Canada, we depend on the rigorousness of the regulators locally. Ofgem’s job is to ensure that, as a whole, sustainability criteria are correct. I do not believe that it would be fair to say that Ofgem is not doing a thorough job. That is not my experience.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, it is clear that this Government know that what is coming from Drax is not renewable energy. At the moment, every single energy bill payer in Britain pays Drax for renewable energy. It is not renewable; the company emits 12 million tonnes of carbon a year. The Government know that and choose to allow international regulations to cover it up.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I do not recognise what the noble Baroness says. It is true that Drax is an emitter of carbon but that is offset—netted off—by the new forestry growth that takes place and absorbs the carbon. This is not a fanciful notion by the Government; the International Energy Agency, the IPCC and the Committee on Climate Change all accept that biomass, as long as sustainability criteria are applied and accepted, is in that way a low-carbon renewable energy.