Drax sees £30m EBITDA cut over current fiscal year from Climate Levy change

9th Jul 2015 08:09

Drax expects the removal of the Climate Change Levy exemption for renewable electricity generated after 1 August 2015, announced in Wednesday's Budget, to lead to a reduction in earnings before interest, tax, depreciation and amortisation of around £30m in 2015 and £60m in 2016.It said this was an initial estimate, adding that thereafter, it expects the impact to reduce. As noted by the government, the value of CCL exemptions is expected to be negligible by the early 2020s, Drax said. Chief executive Dorothy Thompson said: "We are surprised and disappointed at this retrospective change to a support regime which has been in place since 2001 specifically to encourage green energy and support renewable investment." At 0822 BST, the company's shares were up 3.6% at 263.80p, having tumbled to an all-time low on Wednesday following the announcement.