Drax Group plc, the North Yorkshire power generator, said the UK’s Financial Conduct Authority (FCA) has commenced an investigation into the company relating to “certain historical statements regarding Drax’s biomass sourcing and the compliance of Drax’s 2021, 2022 and 2023 Annual Reports.”

Drax shares fell as much as 9%.

In a stock exchange statement, Drax said: “The company was notified on 26 August 2025 that the Financial Conduct Authority (FCA) has commenced an investigation into the company covering the period January 2022 to March 2024 relating to certain historical statements regarding Drax’s biomass sourcing and the compliance of Drax’s 2021, 2022 and 2023 Annual Reports with the Listing Rules and Disclosure Guidance and Transparency Rules.

“The company will cooperate with the FCA as part of their investigation.”