Drax Group shares lose power
SHARES in electricity generator Drax Group slumped 8 per cent yesterday after it lost a court battle with the Government over future funding.
The company, led by chief executive Dorothy Thompson, had originally hoped to get a state subsidy for two of the conversions and launched a legal fight when the Government agreed to fund only one
Drax is converting three of six units at its massive Selby complex in Yorkshire from coal to biomass.
The company, led by chief executive Dorothy Thompson, had originally hoped to get a state subsidy for two of the conversions and launched a legal fight when the Government agreed to fund only one, saying the other was ineligible.
The Court of Appeal yesterday overturned a High Court ruling last month in favour of Drax.
The shares plunged 8 per cent, down 58 1/2p to 651 1/2p, on the news but Drax said it would not appeal against the decision.
