Trading improves at Drax

DRAX, the operator of the UK’s largest coal-fired power station, said trading conditions in commodity markets had improved this year, three months after it said rising coal prices could hurt the firm’s margins.

Drax, whose coal-fired power station in North Yorkshire supplies about seven per cent of the UK’s electricity, however, warned that markets remained volatile and that it remained “cautious” in its outlook.

In February, chief executive Dorothy Thompson said the outlook was “difficult”, after coal prices started to increase towards the end of last year.

Shares in Drax closed 0.2 per cent up, climbing 0.8p to finish at 457.6p yesterday.