Drax Power Station: Subsidies

(asked on 9th May 2025) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, for what reason The Contracts for Difference (Miscellaneous Amendments) (No. 2) Regulations 2025 do not include time limits on extended subsidies to Drax.


Answered by
Michael Shanks Portrait
Michael Shanks
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 15th May 2025

The Government agreed Heads of Terms with Drax for short-term support from 2027-2031 to ensure UK security of security, as outlined in the ministerial statement in February. This represents a step-change in arrangements and Drax will provide power only when the system, and consumers really need it. This halves the level of consumer subsidies compared to existing arrangements, saving nearly £6 per household in annual bills.

The referenced statutory instrument makes amendments to the definition of an eligible generator to facilitate support for large scale biomass generators. It does not specify the terms of contracts for difference for individual companies, including time limits.

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