DRAX 5 YEAR POWER SALE TO 201

RNS Number : 9923B

Drax Group PLC

05 November 2009

 



5 November 2009

Drax Group plc

("Drax" or the "Company")

Symbol:DRX

DRAX SECURES 5 YEAR POWER SALE TO 2015 WITH CENTRICA

Drax has entered into a further agreement with Centrica to provide 300MW of baseload power for a 5 year period commencing October 2010. This equates to around 13.1TWh of power.

The agreement provides Drax with fixed dark green spreads consistent with Drax's trading strategy. Drax will supply power at agreed prices which include Centrica paying Drax for coal, based on international coal prices, and delivering matching CO2 allowances. The volume of this baseload contract is equivalent to a load factor of approximately 8% for the period October 2010 to September 2015.

Dorothy Thompson, Chief Executive of Drax said: "I am very pleased to announce this new agreement with Centrica, which underlines our strong working relationship. As with the first Centrica agreement in 2006, this not only gives Drax options over how and when to dispatch power but is also consistent with our progressive hedging policy. Moreover, locking in dark green spreads out to 2015 clearly demonstrates that there is appetite for deals beyond 2012".

Enquiries:

For further information please contact:

Andrew Koss, Investor Relations                 [phone]

Mike Harrison / Nick Claydon, Brunswick    [phone]        

Website:    www.draxgroup.plc.uk

  Notes to Editors 
  This agreement is in addition to the Centrica agreement announced on 11 April 2006. Under the terms 
  of the original agreement, Drax agreed to provide 600MW of baseload power for a 5 ¼ year period 
  commencing October 2007. 

 That agreement also provides Drax with fixed dark green spreads consistent with Drax's trading 
 strategy. Drax will supply power at agreed prices which include Centrica paying Drax for coal, based on 
 international coal prices, and delivering matching CO2 allowances. The volume of this baseload contract 
 is equivalent to a load factor of approximately 16% for the period October 2007 to December 2012.

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