Recovery of Monies from TXU

Drax Group PLC
19 January 2006


FOR IMMEDIATE RELEASE
                                                                 19 JANUARY 2006


                       RECOVERY OF MONIES FROM TXU:

                         RECEIPT OF THIRD PAYMENT

Drax has today been informed by the Supervisors of TXU Europe Energy Trading
Limited ('TXU EET') and TXU Europe Group plc ('TXUEG') that it will receive the
sum of £56.8 million pursuant to the Company Voluntary Arrangements ('CVAs') for
these TXU companies. The payment is expected today and, after making a deduction
for VAT, will be applied in partial repayment of a £77 million bridge loan
facility for Drax Finance Limited.

This payment is the third distribution received from the CVAs and Drax continues
to expect repayment of its principal claims broadly in full, with further
distributions also being applied in repayment of amounts outstanding under the
bridge facility. The amounts left to be recovered from TXU EET and TXUEG now
amount to £26.3 million out of total claims of some £348 million.

The Supervisors of TXU EET and TXUEG currently anticipate that the fourth
distribution will be made in May/June 2006 with fifth and sixth distributions in
October 2006 and early 2007.

For more information, please contact:

Andrew Jones/Melanie Wedgbury
DraxGroup plc                                    01757 618381

David Trenchard/Peter Hewer
Tulchan Communications                           020 7353 4200

                                     -ENDS-

Notes:
     
1.   Drax has principal claims against TXU EET (in administration and subject
     to a CVA) which total approximately £348 million, which were partly 
     guaranteed by TXUEG (in administration and subject to a CVA). On 
     28 January 2005, CVAs were approved for a number of TXU companies, 
     including TXU EET and TXUEG.

2.   It is envisaged that Drax will receive distributions from the CVAs for
     TXU EET and TXUEG totalling an estimated £348 million.

3.   On 30 March 2005, Drax received from TXU EET and TXUEG the sum of £214.2
     million.

4.   On 2 August 2005, Drax received from TXU EET and TXUEG the sum of £50.7
     million

5.   The amounts left to be recovered from TXU EET and TXUEG, after that
     which is expected to be received today, amount to £26.3 million
     
6.   The £77m bridging loan facility formed part of the refinancing arrangements 
     implemented on 15 Decemeber 2005 and is secured against the proceeds from 
     the CVAs



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