Energy company Drax is under investigation by the UK’s financial watchdog over the firm’s sourcing of wood for biomass pellets in the wake of whistleblower claims. The London-listed group said the Financial Conduct Authority (FCA) probe covers more than two years, from January 2022 to March 2024, and will also look at compliance of Drax’s annual reports from 2021, 2022 and 2023 with rules over listing, disclosure and transparency. Drax said it will “co-operate with the FCA as part of their investigation”. Shares in the FTSE 250 firm fell 8% in morning trading on Thursday. It follows accusations by Drax’s former head of public affairs and policy, Rowaa Ahmar, in March that the company had misled over its sourcing of wood for biomass pellets, which were made as part of her claim for unfair dismissal at an employment tribunal. Drax denied her claims. The firm and Ms Ahmar reached a settlement with Drax just over a week after the case opened.
- Related coverage in the Guardian: UK power company Drax’s shares plunge amid investigation over source of ‘renewable’ fuel