Drax faces formal investigation over wood pellets burnt for power

The UK’s energy regulator has launched a formal investigation into power company Drax over whether the wood pellets burnt to generate electricity in its plant breached sustainability rules.

Ofgem last year began examining whether Drax had complied with the UK’s biomass sustainability rules, and escalated the probe into an investigation announced on Wednesday. Shares in Drax fell about 5 per cent by midday.