Drax Group PLC
11 April 2006
11 April 2006
DRAX GROUP PLC
('Drax')
(Symbol 'DRX')
DRAX SECURES POWER SALE TO 2012 WITH CENTRICA
Drax has entered into an agreement with Centrica on standard market terms to
provide 600MW of baseload power for a 5 1/4 year period commencing October 2007.
This equates to around 27.6TWh of power.
The agreement provides Drax with fixed dark green spreads consistent with Drax's
trading strategy. Drax will supply power at agreed prices which include
Centrica paying Drax for coal, based on international coal prices, and
delivering matching CO2 allowances. The volume of this baseload contract is
equivalent to a load factor of approximately 16% for the period October 2007 to
December 2012.
Dorothy Thompson, Chief Executive of Drax said: 'I am very pleased to announce
this agreement with Centrica. This transaction secures power sales into the term
market whilst retaining Drax's optionality on how and when to dispatch power.'
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