Drax: FCA - Finally Cleared Again

Research evidence excerpt

Drax: FCA - Finally Cleared Again

Equity Research

European Utilities & Clean Energy

18 June 2026

Drax

FCA - Finally Cleared Again

First LookDrax announce the FCA have closed the probe into historical

accounting of biomass sourcing. No action to be taken. The

probe, in August 2025, led to shares falling 10% and covered DRX.L/DRX LN OVERWEIGHT European Utilities & Clean

Energythe period of Jan 2022 - March 24. Drax have now been POSITIVE

Price Target GBp 1100

cleared by Ofgem, FCA and the NAO. This clearing event Price (17-Jun-26) GBp 754

positive. Potential Upside/Downside +46.0%

Source: Bloomberg, Barclays Research

Drax faced another probe: on 28 August 2025,. the FCA announced a probe into Drax

European Utilities & Clean Energyaccounting. The investigation into the Company covered the period from January 2022 to

Dominic Nash, PhD

March 2024 relating to certain historical statements regarding Drax's biomass sourcing and the

+44 (0)20 3134 2364

compliance of Drax's 2021, 2022 and 2023 Annual Reports with the Listing Rules and Disclosure dominic.nash@barclays.com

Guidance and Transparency Rules. Barclays, UK

This probe follows investigations into Drax from Ofgem (cleared on sustainable reporting, but a Peter Crampton

£25mn fine related to a technical profiling data mistake, 29 Sept 2024 here) and the +44 (0)20 3555 0125

peter.crampton2@barclays.comNAO, January 2024, which broadly validated Drax's biomass role, here.

Barclays, UK

Drax cleared: the Drax statement this morning is short: ' Drax confirms that the FCA has closed Laura Marconi

its investigation into the Company, which was announced on 28 August 2025, and no action will +44 (0)20 3555 0762

be taken.... We are pleased to see the investigation closed with no action being taken.' laura.marconi@barclays.com