By Paul Homewood
https://www.drax.com/investors/full-year-results-for-the-twelve-months-ended-31-december-2017/
Drax have announced an operating loss of £117m last year, although this includes a loss of £156 on foreign exchange derivative contracts.
But the most significant thing their accounts reveal is the full extent of the subsidies they have received for biomass production.
Three of its six power generation units are now upgraded to use wood pellets, with a fourth due on line this year. Generation from biomass accounted for 65% of the 20 Twh produced last year.
The first two units are still covered under the Renewable Obligation scheme, and generated an income of £481m.
The third unit qualifies under the CfD auction, which guarantees a price of £106/MWh.
The Government owned Low Carbon Contracts Company tops up the revenue received by Drax for the electricity sales themselves. Last year, this subsidy amounted to £248m:
In total therefore, Drax received subsidies worth £729m last year, all to be paid for by electricity users.
Without this, Drax would be bankrupt.
Is there any company in the UK that is more subsidised than Drax?
via NOT A LOT OF PEOPLE KNOW THAT
February 27, 2018 at 09:25AM
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