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DRAX POWER LIMITED

Company number: 04883589

Reporting period:
1 July 2018 to 31 December 2018


This information is as reported by the business, and responses are in their own words.

This report was filed on 29 January 2019

and approved by Mike Patrick

Payment statistics

Average time taken to pay invoices: 31 days

Invoices paid:

  • within 30 days: 49%
  • in 31 to 60 days: 44%
  • in 61 days or more: 7%

Invoices due but not paid within agreed terms: 22%

Payment terms

Shortest standard payment periods

0 days

Longest standard payment period

60 days

Standard payment terms

Standard Payment Terms 60 days Longest Payment Terms 60 days after month of invoice In addition to above we have identified 103 invoices which were due outside of the reporting period but had not been received and so not previously reported as “due but not paid within agreed terms”, if included this would result in “invoices due but not paid within agreed terms” being 23%. Drax Power standard contract payment terms are 60 days, however terms are agreed with suppliers as part of contract negotiations. Drax Power pays a number of suppliers via a credit card programme. In the reporting period 23% of invoices were paid through this programme, resulting in the total average days to pay of 31 days. The Maximum payment terms in this period was 60 days after month of invoice, only 1% of invoices were paid on these terms. During the period standard payment terms moved from 42 days to 60 days, this only applies to suppliers operating under standard terms and conditions and not where a contract has been negotiated. 830 suppliers were contacted by letter regarding the change, 609 suppliers have been updated so far following acceptance of the change in terms.

Were there any changes to the standard payment terms in the reporting period?

During the period standard payment terms moved from 42 days to 60 days, this only applies to suppliers operating under standard terms and conditions and not where a contract has been negotiated. 830 suppliers were contacted by letter regarding the change, 609 suppliers have been updated so far following acceptance of the change in terms.

Were suppliers notified or consulted about these changes before they were made?

This only applies to suppliers operating under standard terms and conditions and not where a contract has been negotiated. 830 suppliers were contacted by letter regarding the change, 609 suppliers have been updated so far following acceptance of the change in terms.

Maximum contractual payment period agreed

60 days

60 days after month of invoice Payment terms are agreed with suppliers as part of contract negotiations. If payment terms are 60 days after month of invoice Drax Power offers Supply Chain Finance.

Any other information about payment terms

Drax Power offers reduced payment terms by credit card where accepted. Payment terms are agreed during contract negotiations.

Dispute resolution process

Disputes should be sent to the following email address; accountspayable@drax.com This email is monitored daily by Accounts Payable. On receipt of any invoice queries, Account Payable check whether: - •The invoice is for Drax Power •We have authorised supplier details and bank account for payment •A Purchase Order (PO) number is quoted and matches an approved order number •The invoice details match the approved PO for quantity, price, and description of supply •The PO has been receipted •The invoice has not already been paid •We have received a copy of the invoice Once the above has been checked a number of courses of action can be taken with both the supplier and internal site via our Procurement P2P system. It is our intention to action and have invoices ready for BACS payment within 10 working days of the query request providing it is a valid query. As these invoices are likely to be overdue, they are normally picked up on the next scheduled BACS run. In exceptional circumstance a CHAPS payment for emergency payments can be made. All contracts have a clause which enables the supplier to claim the Bank of England interest rate on late payments.

Other payment information

Has this business signed up to a code of conduct or standards on payment practices? If so, which?

For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.

Yes, this business has signed up to: Prompt payment code

Does this business offer e-invoicing in relation to qualifying contracts?

This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.

No

Does this business offer supply chain finance?

This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.

Yes

Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?

No

During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?

No