Drax internal emails and FCA investigation: cross-party request to review subsidy
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The Rt Hon Ed Miliband MP
Secretary of State Department of Energy Security and Net Zero
18th February 2026
Drax internal emails and FCA investigation: cross-party request to review subsidy
Dear Secretary of State,
We are writing to bring your attention to a tranche of newly released internal correspondence from energy company Drax. This evidence suggests that Drax may have knowingly made misleading claims to the government, parliamentarians, Ofgem, and investors in its response to BBC Panorama’s investigation into Drax’s subsidised sourcing of wood from Canadian forests in 2022.
We are deeply concerned that a company should be in receipt of substantial billpayer subsidy, currently guaranteed until 2031, While it may have knowingly and consistently concealed information of material relevance to its legitimacy as a subsidy recipient.
According to media reports cited below, after the documentary aired, one senior manager wrote “we’ve been saying we don’t source from these forests when it appears we might be.”
This was despite public statements from the CEO stating that the BBC allegations were “false,” “ill-informed” and “promoted by vested interests.” The emails further Suggest Drax was told by lawyers “the legal view contradicts what you’ve put in the public domain.”
Given that the Financial Conduct Authority are currently investigating such “historical statements” made by Drax about their sourcing of pellets, we request that all future UK government contracts with Drax be suspended for the duration of this investigation. We ask you to clarify whether your Department considers Drax to be currently meeting the standards of transparency and compliance expected of a recipient of public subsidy.
We also highlight the quote from Lord Alan Whitehead, Energy Minister on 10th December 2025 “If Drax is non-compliant, the subsidy goes. There is no subsidy in the case of a non-
compliant organisation of any kind. If that happens, it will be the end of Drax”. We therefore
ask what steps you will take to reassess Drax’s eligibility for ongoing and future support
should the FCA investigation substantiate concerns that material information was withheld or
misrepresented.
Recent revelations are covered in the following media reports:
• Rachel Millard, Financial Times, Drax manager questioned public statements on
wood sourcing, tribunal documents show, 30th January 2026
• Jillian Ambrose, The Guardian, Drax insiders privately raised concerns over its
sustainability claims, court papers show, 4th February 2026
• Old Sparky, Private Eye, “Drax: Internal Affairs” Issue 1668, 6-19 Feb 2026
We hope that you share our concern and confirm that you will take decisive action to ensure
that no further subsidy will be awarded if such practice is uncovered.
Yours sincerely,
Adrian Ramsay MP
Alex Sobel MP*
Baroness Boycott
Baroness Jones of Moulsecoomb
Baroness Young of Old Scone
Barry Gardiner MP
Carla Denyer MP
Chris Hinchliff MP
Ellie Chowns MP
Pippa Heylings MP
Lord Randall of Uxbridge
Sian Berry MP
The Earl of Caithness
Wera Hobhouse MP
