NEW subsidies were announced for the wood-burning power plant Drax yesterday, with the government claiming the new deal will halve consumer costs and improve sustainability.

The Yorkshire-based power station, which produces around 5 per cent of Britain’s electricity, was due to see its subsidies expire in 2027.

Ministers confirmed that Drax will remain part of the energy system until at least 2031, describing it as “important to delivering a secure, value-for-money power system.”