8 July 2015
Drax Group plc
(Symbol:DRX)
Climate Change Levy Announcement
The Government has today announced that it will remove the Climate Change Levy (CCL) exemption for renewable electricity generated after 1 August 2015.
Whilst we are still assessing the impact of this change, our initial estimate is for a reduction in EBITDA in the region of £30m in 2015 and £60m in 2016. Thereafter we expect the impact to reduce. As noted by the Government in its announcement today, the value of CCL exemptions is expected to be negligible by the early 2020s.
Dorothy Thompson, Chief Executive Officer of Drax, commented:
"We are surprised and disappointed at this retrospective change to a support regime which has been in place since 2001 specifically to encourage green energy and support renewable investment."
Enquiries:
Drax Investor Relations: Mark Strafford
+44 (0) 1757 612 491
Media:
Drax External Communications: Andrew Brown
+44 (0) 7721 513 777
Website: www.drax.com
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