Drax’s shares plunge as City watchdog investigates sourcing of wood pellets

FCA inquiry into biomass power station relates to disclosures and transparency over two-year period

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The power generator Drax has revealed it is under investigation by the City watchdog over “historical statements” made about the sourcing of wood pellets for its biomass power station.

The Financial Conduct Authority confirmed the investigation on Thursday, which will cover a period of more than two years between January 2022 to March 2024 and examine whether the company complied with disclosure and transparency rules, including in three annual reports.