UK FCA Investigates Drax Group Biomass Sourcing, Reporting Compliance

Drax Group, a major UK power producer supplying about 5% of Britain's electricity, is under investigation by the Financial Conduct Authority (FCA) concerning its biomass sourcing and the compliance of its 2021 to 2023 annual reports with regulatory standards. The probe covers the period from January 2022 to March 2024 and focuses on certain historical statements made by Drax regarding its biomass sourcing. Drax has publicly confirmed it will cooperate fully with the FCA during the investigation. Despite the probe, analysts maintain a positive outlook on Drax, with some recommending a buy rating based on the company’s strong financial performance and strategic growth plans. The investigation could have implications for stakeholder confidence and the company’s operations, though no further details have been provided at this time. This development follows a recent report of a fall in Drax’s profits in its half-year results.