Drax launches legal challenge against policy change in Chancellor’s Budget

POWER station operator Drax has launched proceedings for a judicial review of the Government’s handling of the removal of the climate change levy exemption for renewable electricity.
Drax Group operates the North Yorkshire power station that has been converting some of its coal-burning units to biomass as part of £700m investment.
It believes the removal of the levy, announced by the Chancellor in his summer Budget statement on July 8 to take effect on August 1, will cost it £90m in 18 months. The company also lost £425m from its market value in the afternoon’s trading following the announcement.
Drax Group, along with Northampton-based renewable energy company Infinis Energy, believe a judicial review is jutified because “the exemption was removed without the application of an appropriate notice period, as the notice given was only 24 days”.
They are seeking “a reasonable and proportionate notice period for withdrawal of such renewable support”.
Drax produces about 8% of the country’s electricity and is one of the leaders of the UK renewable energy sector.

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