INITIATION OF PROCEEDINGS FOR JUDICIAL REVIEW

RNS Number : 8534X

Drax Group PLC

02 September 2015

 



2 September 2015

DRAX GROUP PLC

(Symbol: DRX)

DRAX AND INFINIS INITIATE PROCEEDINGS FOR A JUDICIAL REVIEW OF THE NOTICE PERIOD FOR REMOVAL OF THE CCL EXEMPTION

Drax Group plc and Infinis Energy plc have today initiated proceedings for a judicial review of the notice period given by HM Treasury when removing the exemption from the Climate Change Levy (CCL) for electricity generated from renewable sources. The basis of this review is that the exemption was removed without the application of an appropriate notice period, as the notice given was only 24 days.

The companies ask the court to consider a reasonable and proportionate notice period for withdrawal of such renewable support.

Enquiries:

Drax Investor Relations: Mark Strafford

[phone]

Media:

Drax External Communications: Andrew Brown

[phone]

Brunswick: Richard Jacques / Oliver Sherwood

[phone]

Website: www.drax.com

Note:

1.   The Climate Change Levy (CCL) is a tax on UK business energy use intended to encourage energy efficiency, reduce carbon emissions and promote energy from renewable sources.  The tax was implemented in 2001 and is collected from businesses by energy suppliers through energy bills to their business customers.

Customers were able to claim an exemption from the CCL if they bought electricity from certain qualifying renewable energy sources. Exempted renewable power was demonstrated by way of Levy Exemption Certificates (LECs), which were issued by Ofgem to generators for each MWh of qualifying renewable energy generated.

As part of the Budget on 8 July, the Chancellor announced the removal of the exemption from the CCL for electricity generated from renewable sources, with effect from 1 August 2015.

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