FCA ends investigation into power company Drax with no further action

The watchdog says it looked at thousands of documents as part of the probe which had been running since last summer

The Financial Conduct Authority has closed its probe into alleged misreporting of biomass sourcing at Drax.

The watchdog had opened an investigation into the energy firm in August last year, focusing on its accounts between 2021 and 2023. It followed whistleblower allegations stemming from an employment tribunal.

The FCA’s involvement covered Drax’s required disclosures as a listed company. Now the FCA has confirmed the investigation has ended with no further action.

It said: “We undertook an extensive investigation following concerns raised regarding disclosures to the market about the sustainability of Drax’s Canadian biomass. We did not find evidence that justified any further action.

“Thousands of pages of complex material were reviewed as part of the investigation, and individuals from the company interviewed. Our focus was on areas within our remit, specifically whether Drax’s annual reports and accounts between 2021 and 2023 contained misleading statements or left out important information investors needed to know. Accurate reporting is crucial to the integrity of our markets, and vital so investors can make informed decisions.”

Will Gardiner, CEO of Drax said: “We recognise the importance of compliance with our regulatory obligations and have worked constructively with the FCA throughout this investigation. We are pleased to see the investigation closed with no action being taken.”