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DRAX PUMPED STORAGE LIMITED

Company number: 06657336

Reporting period:
1 January 2024 to 30 June 2024


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

This report was filed on 30 July 2024

and approved by Andy Skelton

Payment statistics

Average time taken to pay invoices: 109 days

Invoices paid:

  • within 30 days: 27%
  • in 31 to 60 days: 52%
  • in 61 days or more: 21%

Invoices due but not paid within agreed terms: 31%

Payment terms

Shortest standard payment periods

0 days

Longest standard payment period

60 days

Standard payment terms

Drax Pumped Storage standard contract payment terms are 60 days; however, terms are agreed with suppliers as part of contract negotiations. Payment runs are completed on a weekly basis whereby invoices falling into this category are picked up on the next BACS following due date.

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 contractual negotiations. Drax have an established Supply Chain Finance facility with HSBC operating under Drax Power Limited. The facility was set up on an uncommitted basis and allows suppliers that sign up to the programme the option to receive early payment of their invoices. The participants under the programme typically have short payment terms and large spend. Furthermore, the facility provides a cost effective source of financing to the supplier, availability to access funds sooner than the payment terms if desired, and provides greater control with a reduction in their trade receivables.

Any other information about payment terms

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

Dispute resolution process

On receipt of an invoice, Accounts Payable perform standard checks to confirm: - •The invoice is for Drax Pumped Storage •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 We target to complete these checks within 5 days of invoice receipt. If invoices are received on a timely basis and no queries arise from these checks, payment will be schedule by BACS in accordance with terms. Where queries arise, payment will be made by BACS once these queries are resolved. We target to resolve queries within 10 days and make payment on the next scheduled BACS run. Disputes should be sent to the following email address; accountspayable@drax.com This email is monitored daily by Accounts Payable.

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