Contract strength bolsters trading at Drax

In a trading update yesterday, Drax, which is based near Selby, said it had delivered a good operational performance so far in 2010.

Chief executive Dorothy Thompson said: "We have the ability to take advantage of Drax power station's flexibility and reliability to improve profitability in such market conditions. As a result, we continue to trade in line with expectations."

Drax said it will update the market on the group's contracts on August 3 when it is due to announce its half year results for the six months up until June 30.

Drax has told shareholders it plans to renew talks about biomass subsidies now the General Election is over.

The North Yorkshire power generator is keen to push the case for a change to the regulatory regime with the new Conservative/ Liberal Democrat coalition.

The group has said that it needs "regulatory certainty" if it is to build three standalone biomass plants throughout the Yorkshire and Humber region.

Drax said it expects to be able to prove the long-term investment case for a dedicated biomass-fired power

generation plant by the end of the year.