Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.
BREAKING NEWS

Drax, Iberdrola tweak plants deal after EU decision

Drax, Iberdrola tweak plants deal after EU decision
FILE PHOTO: A new turbine is lowered by a crane at Drax power station in Drax, northern England, February 16, 2011. REUTERS/Nigel Roddis -
Copyright
Nigel Roddis(Reuters)
Euronews logo
Text size Aa Aa

(Reuters) – British power producer Drax Group Plc <DRX.L> has tweaked the terms of its deal to buy UK generation facilities from Spain’s Iberdrola <IBE.MC> to share additional risks due to a recent EU decision on Britain’s state-supported back-up power scheme.

Drax said the November decision on the UK capacity market scheme had put at risk payments to plants it is buying in the £702-million deal and that it had agreed a risk-sharing scheme with Iberdrola as a result.

Drax may receive a payment of up to £26 million in compensation under the amendments, it said, depending on the outcome of continuing applications to Brussels around the capacity market.

(Reporting by Noor Zainab Hussain in Bengaluru; editing by Patrick Graham)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.