Drax Share Discussion Threads

[geckotheglorious] 20/12/2022 21:23

"Electricity Generators Levy"
Publication by UK Government of further details of Electricity Generators Levy

In November 2022, the UK Government ('Government') announced a windfall tax on renewable and low-carbon generators, termed the Electricity Generators Levy (EGL), to be implemented from 1 January 2023 and structured as a levy on power sales above a benchmark of £75/MWh.

Through November and December, Drax has engaged with the UK Government regarding the precise details of the EGL, including the treatment of fuel costs for dispatchable generators. On 20 December 2022, Government published a technical note and draft legislation, which includes an allowable exceptional fuel cost element, increasing the underlying £75/MWh benchmark (indexed to CPI from April 2024).

The allowable exceptional fuel cost will be calculated retrospectively based on the actual cost above a baseline fuel cost of £65/MWh or historical levels, whichever is lower.

In its Trading Update, issued on 15 December 2022, Drax indicated an expectation for the cost of biomass generation in 2023 to be in excess of £100/MWh. 

The levy will apply to Drax's three biomass units operating under the Renewable Obligation scheme and its run of river hydro operations. The levy will not apply to Drax's CfD biomass unit, pumped storage hydro and coal generation.

[cav10] 20/12/2022 16:02

DON'T COMPLAIN !

[viscount1] 20/12/2022 15:34

Anyone know why the share price is shooting up today, several days after a trading update?

[thegreatgeraldo] 20/12/2022 15:02

Life in the old dog!

[halfpenny] 19/10/2022 10:39

Wot a mess!!.
They need to sort out their Value Chain processes and systems with a clear Governance.

Basics are GOVERNANCE GOVERNANCE GOVERNANCE

Wot a mess so How Low How Soon??

[castleford tiger] 13/10/2022 14:31

If you have ever been involved with the media you might not.

I have very close connections to tv and radio and well...........

tiger

[castleford tiger] 13/10/2022 12:28

csm
If you trust and believe the reporting.

I sold as i feared this but i cannot believe the Canadians allow this to happen.

Therefore i reserve judgement on the allegations made.
tiger

[csmwssk12hu] 13/10/2022 11:28

They may well be getting hit with a windfall tax, should be made to pay back subsidies it’s had as well £832m in the last twelve months, no business without them and they should not have been claiming them imho dyor

[ginty the brave] 10/10/2022 13:16

Hence todays fall.

(Sharecast News) - UK ministers are reportedly pressing ahead with plans to cap prices at renewable energy generators, after talks failed to persuade them to voluntarily fix contracts well below the current wholesale rates.

According to The Times, a cap to stop renewable electricity generators cashing in on soaring power prices could rake in up to £14bn a year for the Treasury.

Conservative think tank Onward said that it could earn the government between £4.1bn and £10.2bn, assuming about 25% of generators are receiving bumper profits from higher wholesale power prices, The Times said.

Onward said a £10bn windfall would equate to relief of up to £364 per household. Those at risk of being hit by the tax say the windfall will be much smaller.

Energy firms fell on the news. At 1030 BST, Centrica shares were down 3.2%, while Drax shares were 4.4% lower.

The plans are expected to be unveiled this week.

[castleford tiger] 07/10/2022 11:17

If drax were to pull out of wood it would see the company lose over 1.5b spent .
Huge operation in Canada and some in other countries.

What would they burn instead GAS ?

75% of the plant would need shutting and expensive new burners put in.

It would be catastrophic for the business and for the UK.

Without the subsides the operation would not work.

Tiger

[richard3rd] 07/10/2022 10:26

The demand for electricity is still there. Drax are no less important to the UK grid than they were a few days ago, with UK government having a deal in place for them to fire up the coal generators if needed.

I guess the ongoing subsidies are open to review with green credentials being disputed but it was always a controversial method.

Target values put around a few weeks ago might be optimistic currently but there is more to Drax than burning wood long term.

That’s not an ethical judgement on current methods and recent allegations, just my personal view of them as an investment. DYOR

[ginty the brave] 07/10/2022 09:07

Given the current economic and political climate, is DRX worth investing in? I would be looking for 650p + in the short term.

Thanks for your thoughts.

[smurfy2001] 06/10/2022 21:19

Disgusting company.

[csmwssk12hu] 05/10/2022 21:22

We have plenty of coal in the world to see us through till we sort renewable out the forests don’t come back once destroyed the soil structure falls apart

[richard3rd] 05/10/2022 21:06

I wasnt there to know for certain what happened and didnt watch the program - Drax are arguing that they were not using prime wood for pellets arnt they? If in fact they are then clearly that is wrong. But speaking generally and not about this specific forest, regardless of how long it takes a replacement tree to grow, coal is nonrenewable as far as I know (millions of years). So I cant see that we are better off burning the coal. It would be best not to burn anything, but its taking a while for the really green solutions to meet demand. Unless you have a way of reducing demand then burning stuff, currently, still seems necessary (I know this isn't going to be a popular post!)

[geckotheglorious] 05/10/2022 13:48

Brown
"I worry that in 10 or 20 years time, we will have squandered our resources on greenwashed projects and will still be emitting too much carbon"

Guaranteed to be the outcome imo.

[castleford tiger] 05/10/2022 12:08

All
It would help if we had a energy policy that was fit for purpose.

I am not disagreeing re the shipping part but without it we cannot produce enough here.
We tried Willow at Eggbourgh and that failed.

Whilst we are on about it my pal grows 250 acres of crops for his AD plant.

Thats 25% of his land to fuel a highly subsidized source of power.

is that right?
tiger

[brownmruk] 05/10/2022 11:45

I agree Gecko. This is a global problem and we need to address it globally. Even if Drax eventually manages to capture some of the carbon from combustion of the pellets it wouldn't address the carbon from pellet production and transportation. Although Canada generates 60% of its electricity from hydro, it still burns some gas and coal. Better to burn the biomass sourced in Canada in Canada. That being said, if the Drax power station was in Canada, there would still be issues.

We have one chance to fix this problem, but too many organisations are wasting resources trying to make money from appearing to be green. I worry that in 10 or 20 years time, we will have squandered our resources on greenwashed projects and will still be emitting too much carbon.

[lookagain] 05/10/2022 11:44

The Danish government is about to instruct Orsted to resume generating from 3 power stations that will be oil and coal fired.

Germany continues to burn lignite & coal.

Meanwhile Brussels is investigating whether wood fired stations are green or not, which is yet another common interest that the BBC shares with Europe at the expense of the UK.

[geckotheglorious] 05/10/2022 10:04

Shipping tonnes of wood pellets (whether it be the "slash" from trees that were going to get cut down anyway, or actual trees cut down for the purpose) is hardly green.

How much pollution is spewed from those diesel ships crossing the Atlantic bring ing their cargo from North America to the UK?

It's a scam.

Far better to just burn coal dug up in the UK.

[richard3rd] 05/10/2022 09:35

I didnt watch the program but I did see this from Drax yesterday.

hxxps://www.drax.com/press_release/drax-response-to-bbc-panorama-programme-on-canadian-forestry/

[castleford tiger] 05/10/2022 07:30

csm

You are falling into the trap.
That is not what was said.

There was NO proof that all 100% was taken and used to pellet.

I think the Canadian government would be all over DRAX if they were breaking the framework.
Just like in the EU there will be inspectors all over them.

Yes i saw wood move from a site to a pellet facility but how do we know this wasnt the out grades?

In the UK we all have log fires burning hard wood kiln dried in Europe.

As i say there are many questions to be answered but the program clearly set out with an Agenda and filmed what it wanted to try to prove that agenda.

tiger

[csmwssk12hu] 05/10/2022 00:22

Did you actually watch the programme? The Canadian government grades all wood chopped down and only 11% was graded as unsuitable for use the other 89% was graded suitable for other uses ie furniture and house building but drax is claiming government subsidies on all 100% as unsuitable for other use, the ceo is committing fraud on a huge scale or some of his minions are, I find hard to believe he doesn’t know, I am amazed these didn’t go down even further today, they have escaped because people have bought anything today and probably don’t realise what these are doing…yet