Drax Group to sell 90,000 metre points to EDF Energy

The metre points come from Opus Energy Group which Drax acquired for £367m in 2017.

British power firm Drax has announced it will sell up to 90,000 customer meter points to EDF Energy after a strategic review of its energy supply business.

The metre points come from Opus Energy Group, which Drax acquired for £367m in 2017. Over the past seven years, elements of the business have been transferred to the group’s core industrial and commercial energy supply arm.

Drax said it believed the sale of the 90,000 small and medium-sized customer meter points to EDF Energy would “further support its decarbonisation strategy“.

In an announcement published to the London Stock Exchange, the company said: “Drax believes that these measures further support its decarbonisation strategy and the development of its energy solutions (customers) business which is focused on industrial and commercial customers, renewable power and energy services.

“The Energy Solutions business is unaffected by the sale of the Opus SME assets, and there is no change to the group’s energy solutions earnings before interest, tax, depreciation and amortisation (EBITDA) expectations as a result of this process.”

In April, Drax revealed it was trading was in line with expectations for the year as it confirmed it was on track to hit expectations for full-year EBITDA.

Analyst consensus for 2024 adjusted EBITDA was £968m as of 22 April with a range of £881m to £1.1bn.

Drax also confirmed that construction of three new open-cycle gas turbines with a combined capacity of 900MW continued, with commissioning expected to take place in September 2024.