In April 2014, the Department of Energy and Climate Change (DECC), denying the funding, said that the one unit on the grounds was ineligible for an investment contract, which is a new and higher subsidy for the renewable energy generation.
Subsequently, the High Court overturned the minister’s decision claiming that second unit was eligible for the investment contract.
The Guardian cited the company as saying: "Drax confirms that the court of appeal has reached a decision in relation to the appeal by the department of energy and climate change against the high court judgment that Drax’s
"The court of appeal has allowed Decc’s appeal and dismissed Drax’s application for judicial review. Accordingly, the second unit conversion is no longer eligible for an investment contract. Having taken legal advice, Drax will not appeal against this decision."
