Drax agrees to new 12 month contract with National Grid

Energy firm Drax has signed a new 12 month contract with National Grid to provide certain ancillary services, commencing in April 2016.

Due to the current estimates of the revenue and costs associated with the year-long contract, Drax now expects 2016 EBITDA to be towards the top end of the range of current market forecasts.

The contract announcement comes just over a month afterDrax reported a significant fall in profitsin what has been described as a “challenging year.”

The North Yorkshire-based company announced a 64% drop in pre-tax profits from £166m to £59m in the financial year ending December 2015.

Dorothy Thompson, chief executive officer of Drax, said: “We are pleased to have agreed this contract with National Grid.

“At a time when many power stations are closing, this contract recognises the supportive role Drax continues to play in providing secure and dependable electricity to the UK.”

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