On Thursday, Britain’s energy regulator Ofgem announced that power company Drax (DRX.L) had misreported some data concerning biomass imported from Canada. As a result, Drax will contribute £25 million ($33 million) to Ofgem’s voluntary redress fund, reported Reuters.
Drax, the largest renewable power generator in Britain by output, has converted four of its coal-fired units to biomass and also operates hydro power projects.
The investigation revealed that Drax lacked adequate data governance controls for the biomass imported from Canada between April 1, 2021, and March 31, 2022. However, it also found no evidence that the biomass failed to meet sustainability requirements.
In Britain, renewable power generators can earn renewable obligation certificates, which are sold to energy suppliers who use them to offer renewable electricity products to customers.
Ofgem stated, “The investigation determined that the misreported data was technical and would not have affected the level of subsidy Drax received under the renewable obligation (RO) scheme.”
Drax has announced that it will resubmit its Canadian data for the relevant period and will also commission an independent audit of its biomass profiling data for the latest reporting period, April 2023 to March 2024.
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