Drax climbs on High Court decision

14th Jul 2014 13:51

Shares in energy company Drax Group got a lift on Monday after a High Court ruled in favour of its power station unit subsidies. Following the government's announcement in April that Drax's second unit conversion was no longer eligible for an investment contract under the Final Investment Decision Enabling (FID Enabling) mechanism, the High Court has ruled that the unit is in fact eligible. "The matter [has been] remitted to the DECC for reconsideration in the light of this judgement," Drax said in a brief statement, adding that the DECC still has the opportunity to appeal the decision. Shares in the FTSE 250-listed group had risen 3.75% to 705.50p by 14:00.NR