Drax margins in boost as its costs reduce
POWER station Drax yesterday said it had been boosted by lower costs in producing power, while sales are on the rise.
Drax, which converts coal into energy, said that the wholesale prices it was paying for coal were falling while it was selling energy at higher rates.
The difference in so called “dark green spreads” was also accompanied by a rise in sales, the company said in its trading update.
In the statement covering the period from 1 January, Drax said it had delivered a good operating performance while it was on track to hit forecasts for the full year.
Yorkshire-based Drax said its order book was also strong with the group’s sales for 2012 hitting 25.3 terawatts (TWh) and 14 TWh and 3.7 TWh for 2013 and 2014.
Drax said it was moving towards greener technology to create power, in line with the government’s push towards renewable and biomass energy.
The company said in a statement: “Drax is ready to transform itself into a predominantly biomass fuelled generator, but to do so we need an appropriate level of regulatory support, and to that end we look forward to the timely conclusion of the Government’s current review.”
Drax has six generators creating 4,000 megawatts of energy, making it the largest coal-fired power station in the UK.
The company sells most of its energy on the wholesale market and mainly supplies businesses.