FCA closes Drax probe, finds no investor misconduct

The UK's financial regulator has closed a nearly 10-month investigation into Drax Group, the owner of Britain's largest power station, finding no evidence that the company misled investors in its financial reports about the sustainability of its biomass fuel. The Financial Conduct Authority announced the decision on Thursday, June 18, 2026, concluding a probe that began in August 2025.

The investigation focused narrowly on whether Drax's annual reports and accounts for 2021, 2022, and 2023 contained misleading statements or omitted material information required of listed companies. The FCA stated it reviewed thousands of pages of documents and interviewed company officials but found no grounds for enforcement action. The regulator emphasized its role was confined to assessing compliance with disclosure rules, not judging the environmental merits of Drax's operations.

Drax, which operates a major power plant in Selby, North Yorkshire, imports millions of tonnes of wood pellets from North America, primarily Canada, to generate electricity. This biomass energy is classified as renewable and accounts for approximately 4.5% to 5% of Great Britain's electricity. The company has...