Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, further to Question 14369, whether he will place in the Library details of (a) the dates and participants of any meetings and (b) any written correspondence between his Department and the Financial Conduct Authority referring to its investigation into Drax Group plc during the last six months.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Financial Conduct Authority (FCA) provided the link to their online press statement on 18 June, confirming that their investigation had concluded and no further action would be taken. The Department has had no other correspondence with the FCA on this matter, nor have any meetings taken place with the FCA.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he will ask Ofgem to disclose (a) when Drax Group plc first informed Ofgem of the existence of the December 2022 and February 2023 KPMG reports and (b) whether Ofgem obtained unfettered access to unredacted versions of those reports before concluding its investigation in August 2024.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
As requested, I will ask Ofgem to write to the Rt hon Member in due course to set out responses to your questions.
Please note that Ofgem kept DESNZ officials suitably informed of the progress of its investigation and the documents it accessed in the course of reaching its findings, including the KPMG reports.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he or any official or special adviser acting on his behalf has had any communication with the Financial Conduct Authority since 1 May 2026 on its investigation into Drax Group plc.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Neither the Secretary of State nor Special advisers have had any communications with the Financial Conduct Authority on this matter. On 18 June, the Financial Conduct Authority provided my departmental officials with a link to the FCA’s publicly available statement concerning the closure of their investigation. The notice can be found here FCA closes investigation into Drax Group PLC | FCA. We have no record of any further communications.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether, in agreeing new subsidies for Drax for 2027 to 2031, his Department sought assurances from the company that the letter it wrote to the Department on 10 October 2022 about the forests its wood comes from was accurate and complete.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
In the letter Drax was responding to questions posed by DESNZ regarding its sourcing of biomass from Canada. DESNZ subsequently consulted Canadian officials and forestry experts on the issues and developed enhanced sustainability criteria, audit and assurance requirements which have been implemented within the new Low-Carbon Dispatchable Contract for Difference with Drax.
Ofgem independently investigated Drax’s annual profiling submission for compliance period 1 April 2021 to 31 March 2022 which concluded Drax had misreported data. In response, Drax made a voluntary redress payment of £25m and Forvis Mazars has been appointed to independently audit Drax’s annual profiling data and reporting. This audit is currently ongoing.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has asked his new permanent secretary i) if he has read the December 2022 report by the Drax company secretary on whisteblowing allegations ii) if he concluded that there was a cover up and iii) if he is satisfied the company can be trusted to be the largest recipient of the department’s £20 billion biomass subsidy programme.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Secretary of State has not asked the Permanent Secretary to reach conclusions on matters that are subject to Ofgem’s independent regulatory processes.
Ofgem has confirmed that whistleblower accounts formed part of its extensive 2023-4 investigation into Drax’s compliance with reporting requirements. Its investigation did not find any evidence that Drax had been issued with subsidies incorrectly. Shortcomings were identified in Drax’s data governance and controls related to annual profiling data which are not used for subsidy calculation under the Renewables Obligation. Drax has subsequently made a significant payment of £25m to the Voluntary Redress Fund and improved its policies and procedures around reporting data.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, i) when his Department first saw the statement from Drax's General Counsel made on 12 December 2022 that the company's letter to the Energy Secretary dated 10 October 2022 might not "stand up to further scrutiny"; and ii) what steps he is now taking in light of that statement.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
As part of its extensive investigation into Drax’s sustainability reporting, Ofgem considered a range of internal documents concerning the accuracy of public statements around the 2022 Panorama documentary. While the precise documents reviewed are a matter for Ofgem to address as the independent regulator, the government received its final report and is confident in its conclusions.
The new Low-Carbon Dispatchable Contract for Difference with Drax from 2027-31 includes strengthened audit powers for the Low-Carbon Contracts Company to ensure the accuracy of sustainability statements. Drax will be liable for significant penalties via loss of subsidy, and – ultimately – termination of the contract if significant breaches are identified.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether the findings of the paper published in Nature Sustainability on 20 April 2026 titled "Decades of increased emissions from forest-fuelled BECCS" conflict with the modelling underpinning the Department's decision to provide new subsidies to Drax for 2027 to 2031; and if he will now order a review of his modelling.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The case for awarding the 2027-31 Low-Carbon Dispatchable Contract for Difference to Drax was based on short to medium-term security of supply needs as identified by the National Energy System operator (NESO). Longer-term system needs, and considerations around Bioenergy with Carbon Capture and Storage, are considered as part of the government’s forward planning in delivering Carbon Budgets and clean power system requirements.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, (a) when the audit of Drax's supply chain ordered by Ofgem in September 2025 will be completed; (b) whether its findings will be published in full; and (c) if he will not agree final terms for subsidies from March 2027 until that audit has been published.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Following its 2023-4 investigation into the company’s sustainability reporting, Ofgem required Drax to commission and fund a global supply chain audit. The progress of the audit – and any decision on whether to publish its findings - is a matter for Ofgem as the independent regulator. However, the first phase has been delivered and relevant information shared with DESNZ officials.
Any further findings will continue to inform Ofgem and the Low-Carbon Contracts Company’s approach to identifying supply chain-related risks and targeting audit activity, including in relation to the Low-Carbon Dispatchable CfD which operates from 2027.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, if he accepts the finding in Nature Sustainability on 20 April 2026 that bioenergy with carbon capture and storage could (a) increase electricity costs by around 3.5 times and (b) take more than 150 years to create negative emissions.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
We do not recognise these claims.
No final decisions around the deployment of large-scale bioenergy with carbon capture and storage projects have been made, and any support would need to provide value for money for taxpayers.
Biomass, including woody biomass sourced from forests, if sourced sustainably, can be considered a low carbon resource. Government only supports the use of biomass in line with our sustainability criteria. To ensure that BECCS delivers genuine negative emissions, detailed biomass sustainability criteria will be developed for BECCS.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the suitability of Drax to receive biomass subsidy in the context of whistleblowing allegations against that company.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
It has not proved possible to respond to the hon. Member in the time available before Prorogation.