DRAX Power Station in North Yorkshire is to pay a record penalty of £28 million after it failed to meet a target on helping poor households save energy.
The station, which meets eight per cent of the UK’s electricity demand, was one of two companies punished by Ofgem for not doing enough under the Government’s Community Energy Saving Programme (CESP).
The regulator said the actions of Drax and InterGen meant several thousand households in some of the most deprived areas in Britain missed out on energy-saving measures.
Investigations are continuing into four other energy companies.
Drax criticised the size of the penalty and said it was wrong to include independent generators in CESP as they have no direct relationship with customers or experience delivering energy schemes.
About £20 million of the penalty will be used to benefit vulnerable energy consumers through the charity National Energy Action, with the remaining £8 million to be paid as a fine or as further consumer redress.
InterGen will pay £11 million.
Drax chief executive, Dorothy Thompson, said: “We are deeply disappointed with the magnitude of the fine. However, we believe it is in our shareholders’ interests to settle this matter.”
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