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DRAX POWER LIMITED

Company number: 04883589

Reporting period:
1 July 2019 to 31 December 2019


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

This report was filed on 30 January 2020

and approved by Andrew Skelton

Payment statistics

Average time taken to pay invoices: 45 days

Invoices paid:

  • within 30 days: 33%
  • in 31 to 60 days: 47%
  • in 61 days or more: 20%

Invoices due but not paid within agreed terms: 35%

Payment terms

Shortest standard payment periods

0 days

Longest standard payment period

60 days

Standard payment terms

We have excluded from the ‘Invoices due but not paid within agreed terms’ calculation, invoices that were received already past their due date. This amounts to c.3% of total invoices. 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 6% of invoices were paid through this programme, resulting in the total average days to pay of 45 days.

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

Answer not provided

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

N/A

Maximum contractual payment period agreed

60 days

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