Drax said it is “confident” in its biomass compliance after Ofgem opened an investigation into its reporting under the Renewables Obligation scheme.
The energy provider said it appointed an independent third party last year to verify its biomass sustainability and profiling data as part of an ongoing process.
The Renewables Obligation scheme was designed to encourage electricity generation from renewable sources in the UK.
Suppliers such as Drax can meet their annual obligations by presenting a specified number of Renewables Obligation Certificates (ROCs) or paying into a buy-out fund.
The buy-out fund covers the administration cost of the scheme, while any leftover is distributed back to suppliers based on the number of ROCs they presented.
Ofgem’s announcement said that an investigation does not imply evidence of non-compliance, nor has it established any non-compliance that would impact the issue of ROCs to Drax, and therefore the associated financial benefit.