5th Nov 2009 07:00
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 +44 (0) 1757 612333
Mike Harrison / Nick Claydon, Brunswick +44 (0) 20 7404 5959
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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