Story perspectives

Drax Faces Scrutiny Over £1 Billion Subsidies for Biomass

4/16/2026

Summary

Story summary

Drax, owner of North Yorkshire power plant, received nearly £1 billion in subsidies in 2025 for burning trees to generate electricity.
The subsidies cost UK households about £13 per year.
A cross-party MPs group urged the energy secretary to suspend subsidies pending investigation.
Drax says its operations comply, while a regulator found inadequate data governance.
Drax will pay £25 million in compensation and switch to 100% sustainable biomass by 2031.

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Story summary

Drax, owner of North Yorkshire power plant, received nearly £1 billion in subsidies in 2025 for burning trees to generate electricity.
The subsidies cost UK households about £13 per year.
A cross-party MPs group urged the energy secretary to suspend subsidies pending investigation.
Drax says its operations comply, while a regulator found inadequate data governance.
Drax will pay £25 million in compensation and switch to 100% sustainable biomass by 2031.