News Column

Drax shares slide on budget news

July 25, 2014

? Drax, the operator of Britain's largest coalfired power station, saw its share price slide over four per cent yesterday after the government outlined a smaller than expected budget for its new renewable energy support framework.

The FTSE 250-listed firm has already secured subsidies to convert some of its units from coal to biomass, but the government said it is not planning to give any more funding for biomass, meaning no support for Drax's fourth unit.

Under the new framework, established technologies such as onshore wind and solar will be allocated just 50m each year from next year. But there is another side to that coin for less established ones, such as offshore wind, will receive 155 per year from 2016/17.

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Source: City A.M. (UK)

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