An energy company has been fined £25 million after it was found to have failed to report accurate data on the type of material it burned at its North Yorkshire site.
The Drax power station near Selby, the largest in Britain, receives large government subsidies for burning biomass wood chips.
But energy regulator Ofgem, which launched a 15-month investigation into the company after it was accused of using wood from unsustainable sources, said Drax had “no excuse” for sharing “inaccurate” information.
Drax said there was “no evidence” that the company had “intentionally misrepresented” data.
Ofgem conducted its investigation into Drax after the company accused of burning wood from unsustainable sources and claims it has taken wood from valuable, rare forests in Canada.
Environmentalists had previously criticized the power plant, which supplies around 5 percent of Britain’s electricity, for its activities and high emissions.
At the conclusion of its investigation, Ofgem stated that it had found that Drax lacked the necessary data management and controls.
This means that the regulator does not have “accurate and reliable” data on the type of wood used at the North Yorkshire site, it said.
However, the regulator found no evidence that Drax’s biomass was unsustainable.
Ofgem said the findings would require Drax to pay £25 million into its voluntary compensation fund.
Jonathan Brearley, chief executive of the regulator, said: “This has been a complex and detailed investigation.”
“Energy consumers expect all companies to comply with all legal requirements, especially those that receive millions of pounds in public subsidies every year.”
Mr Brearley added: “The legislation is clear about Drax’s obligations – that’s why we have taken tough action.”
“Drax has admitted that there were weak procedures, controls and inadequate corporate governance, which led to inaccurate reporting of data on the type of forestry and the proportion of sawlogs used.”
Will Gardiner, chief executive of Drax Group, said: “Although Ofgem has found that there is no evidence that Drax deliberately misrepresented its profile information, we recognise the importance of having a robust evidence base.”
The company “continues to invest to build confidence in our future reporting,” he said.
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