Written questions, answers and statements

Drax Power Station: Subsidies

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Question for Department for Energy Security and Net Zero

UIN 51136, tabled on 9 May 2025

Question

Wera Hobhouse
Liberal Democrat
Bath
Commons

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.

Answer

Michael Shanks
Labour
Rutherglen
Commons

Answered on

15 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.

Answered by

Department for Energy Security and Net Zero
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