DRAX POWER LIMITED

Company number

04883589

Status

Active

Incorporation

2003-09-01

Last accounts made up

2024-12-31

Account category

FULL

Primary SIC

35110

Hubs

UK Energy & Climate

Accounting basis

FRS 101

Reporting scope

Standalone (parent only)

Auditor

PricewaterhouseCoopers LLP

Audit opinion

Unqualified (clean)

Going concern

Affirmed

“In assessing going concern, the Directors have assessed the prospects of the Company over the 12-month period after the date that these financial statements were authorised for issue. The Directors have considered the forecast financial position of the Company, the Company's commitments and obligations, the Company's expected cashflows and other relevant financial forecasts. This assessment has considered the level of funding available to the Company, participation in the Group's cash pool arrangements and other forms of internal support, including a letter of support received from Drax Group Holdings Limited, where applicable, credit metrics and the current and future economic climate. In their assessment, the Directors have considered the principal risks faced by the Company including, climate change. The Company's financial performance in 2024 was strong, delivering improved profitability due to strong system support and operational performance. The Company's financial position and liquidity remained strong also. At 31 December 2024 the Company had cash and cash equivalents of £27.0 million (2023: £49.8 million), net current assets of £1,370.2 million (2023: £1,828.2 million) and is expected to generate positive cash flows from operations for the 12-month period following the date that these financial statements were authorised for issue. The Company has access to various resources to manage its working capital such as supply chain financing facilities, deferred letters of credit, the Group's cash pool and intra-group term loans. These facilities help to ensure that the Company has adequate resources to meet its obligations as they fall due and to continue in operational existence for the foreseeable future. Therefore, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months after the date of signing these financial statements. Accordingly, the Directors continue to adopt the going concern basis in preparing the financial statements.”

Significant events

• “In 2020, following discussions with National Grid, Ofgem and the UK Government, the Group Board of Directors (the Board) and the Company decided to end coal generation at Drax Power Station. Commercial generation from coal ended in March 2021 and the units were due to close in September 2022. In June 2022, the Company entered into an agreement with National Grid pursuant to which our two, legacy, coal fired units at Drax Power Station were made available from October 2022 to the end of March 2023. The units did not generate commercially during this time and only operated when instructed to do so by National Grid. At the end of March 2023, the coal units closed and generation from coal ceased. During 2024, the process to decommission the coal units was started and is expected to end in 2028.”
• “In January 2024, the UK Government approved the Development Consent Order (DCO) for BECCS at Drax Power Station. The DCO is a milestone in our project to convert two of our biomass units at Drax Power Station to the carbon removals technology BECCS as it provides planning consent for its development.”
• “In February 2025, the Company agreed a non-binding heads of terms for a support mechanism. Notwithstanding the heads of terms, the finalisation of the required long form agreement remains subject to the Parliamentary approval process and as such uncertainty remains. We continue to engage with the UK Labour Government on both the transitional support mechanism and cluster sequencing process. Discussions remain positive to date.”
• “On 10 February 2025 Drax Power Limited agreed a non-binding heads of terms with the UK Government on a low-carbon dispatchable Contract for Difference (CfD) agreement for Drax Power Station.”

Auditor / going-concern / subsidiary information is extracted from the PDF version of the latest annual accounts and is not tagged in iXBRL. About these numbers