Drax Group (LSE:DRX) PLC has said it will continue to work with the government and industry on proposals for a revenue cap for renewable companies.
The company was responding to the UK Government's plan to introduce an Energy Prices Bill which will include legislation for a temporary cost-plus revenue limit for renewable electricity generation and a voluntary Contracts for Difference (CfD) process.
In a statement, Will Gardiner, Drax Group (LSE:DRX) CEO, said: "The Government's statement recognises the unique role that biomass plays in the UK energy system and its higher input costs. We will continue to engage with the Government on the specific details of the legislation as it continues to be developed.”
He noted: "Drax is the UK's largest source of renewable electricity by output and our sustainable biomass provides enough renewable electricity for four million households, playing a critical role in keeping the lights on - whatever the weather.
“We plan to invest £3bn in our UK carbon removal, renewable power, system support and supply chain projects in the 2020s, demonstrating our commitment to UK energy security and net zero.”
"Our biomass operations support around 6,000 jobs throughout the North of England and thousands more jobs will be created and supported through our investment in Bioenergy with Carbon Capture and Storage (BECCS)," Gardiner added.
Shares in Drax were little changed on the news, down 2.2p at 522.30p in early trading on Wednesday.