After wood pellet reporting failures, it’s time for a proper review of Drax’s subsidies | Nils Pratley

Before biomass firm is promised a penny extra from billpayers, Ed Miliband should commission a review of its business model

A finding that you submitted dodgy data to the regulator on where your wood pellets come from sounds like very bad news if, like the biomass power generator Drax, you are the lucky recipient of 500m-plus of subsidies every year and are trying to keep the handouts flowing beyond their scheduled end date of 2027.

But shares in Drax did not collapse on Thursday. City analysts judged that the end of Ofgem's investigation represented an excellent development for the company - a clear positive", said RBC, and a positive read-across" for the chances of getting a new contract with the government, thought Jefferies.