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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 -
Nigel Roddis(Reuters)
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(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)

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