Drax Group plc (DRX) Earnings Call Transcript & Summary

Good morning, everybody, and thank you for joining the call. It's Will here, and I'm joined by Frank, our CFO. I'll provide an overview of the first half before handing it back to Frank to take you through the numbers.

Ladies and gentlemen, welcome to the Drax plc Half Year Results 2026 Conference Call. I'm Vicki, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Will Gardiner, Group CEO. Thank you.

Thank you, and good morning, everybody. I appreciate you all joining the call. I'm joined on the call by Frank Lemmink, our CFO. I'll provide an overview of the first half before giving it back to Frank to take you through the numbers. And then I'll take you back -- take it back to take you through the progress we're making on our growth strategy, and we're then happy to take your questions. We delivered a good first half performance, underpinned by a continued focus on safe and efficient operations. We provided around 6% of U.K. power and 10% of U.K. renewables. In May, we commenced operations of Hirwaun Power Station, adding another 300 megawatts to our portfolio, and we continue to upgrade 2 units at Cruachan, which will add a further 40 megawatts. And over the last 8 months, we've made tremendous progress on our plans to invest in flexible and renewable generation, adding Flexitricity and over 700 megawatts of owned and tolled batteries. Reflecting these developments, we're now targeting an increased Group EBITDA from GBP 650 million to GBP 800 million in 2029 once those BESS developments are fully operational. And these numbers are before the proposed acquisition of Bluefield Solar Income Fund, BSIF, or developing any of the further BESS, solar or wind options that we have. At Drax Power Station, we're continuing to develop options to utilize 4 gigawatts of capacity, including a data center. And as we progress these opportunities, we remain committed to our capital allocation policy and delivering attractive returns for shareholders. So on Page 4, I want to spend a little bit of time on this slide as it demonstrates how we have repositioned our business. We increasingly manage, by which I mean generate, trade, optimize or provide route to market or tolling services, many different types of generation and storage. Each one of these activities will create value in different ways for the Group and for the U.K. system, leveraging our capabilities and experience. Our thesis is that the U.K. energy transition will continue to move at pace, and we are positioning our company to grow with that transition. We expect power demand to grow significantly, and we expect this demand primarily be met by renewables, which will require more flexibility on the system. So since 2018, we have grown the business and transformed from a single site operation with 2.6 gigawatts of biomass to a 4 gigawatt portfolio of pumped storage, hydro, biomass and route-to-market capacity at the end of last year. And I want to highlight the route-to-market services we provide to small-scale solar and wind plants, over 2,000 sites and 800 megawatts, which generate on the order of GBP 10 million of earnings per year. And for reference, that is also what we will be doing for the Bluefield portfolio, which is of a similar size. Now over the course of this year, our portfolio will increase to 6.1 gigawatts with the addition of our first OCGT site Hirwaun, which I will talk more about in a minute, further route-to-market capacity via Flexitricity, which we've already got and the acquisition of Bluefield, which is expected to close tomorrow. Now beyond that, we have development projects already post FID that will grow our megawatts under management to 7.4 gigawatts in 2029, giving us multiple generation technologies across renewables and flexible generation, not to mention the significant development options we have beyond that. Interestingly, our strong position in Flexgen means we're able to develop options for solar and wind from a position of strength and the ability to manage those assets within the portfolio. In June, we announced the proposed acquisition of BSIF, a U.K.-listed investment fund, which operates a U.K. portfolio of about 900 megawatts of operational solar and wind assets in addition to a development pipeline of 2.9 gigawatts, which we will assess in line with our capital allocation policy. For the financial year ended June 30, 2025, EBITDA was about GBP 130 million with a high level of contracted cash flows. And to be clear, the earnings of BSIF are not included in the GBP 650 million to GBP 800 million EBITDA target that I outlined before. To update you, a BSIF shareholder vote took place on the 24th of July and 99% of shareholders voted in favor of the acquisition. Our court hearing to -- sorry, to approve the scheme is due to take place tomorrow, the 31st of July, after which, meaning later that day, the acquisition is expected to complete. So the acquisition supports U.K. energy objectives and strategically moves us to having 3 substantial generation businesses: Biomass, Flexgen, and solar and wind. The acquisition is highly complementary to our existing operations, offering or adding structured and stable cash flows underpinned by longer-term renewable incentive schemes and PPAs, which complement the higher but potentially more volatile cash flows associated with Flexgen. And beyond that, we see an additional opportunity to unlock significant further trading and optimization margins and operational and energy services synergies. We expect to provide more detail on BSIF in September. At the end of May, Hirwaun Power, our new 300-megawatt OCGT commenced operations, and you can see it on the slide there. The Power Station represents an investment of over GBP 100 million in South Wales, supporting energy security, electrification and economic growth for the whole of the U.K. And Frank will provide some additional and quite interesting detail on how it's performed in a few minutes. Hirwaun sister sites, Millbrook and Progress are expected to commission from late this year through 2027. This is later than was expected and reflects delays by the relevant authorities in connecting the sites. Nevertheless, once fully operational, the 3 stations will provide combined capacity of around 900 megawatts and be remunerated under 15-year capacity market agreements worth around GBP 260 million. And of course, those capacity payments are additional to revenues we expect to generate from both peak power generation and system support services. Sustainability, important as always, is an area where we continue to make progress against climate, nature and people initiatives. Recognition of this progress came in January with a CPD -- sorry, CDP, AA rating. And in March, MSCI upgraded Drax from A to AA, reflecting our environmental disclosures, climate transition planning and continued implementation of a Group-wide sustainability framework. Now I'll pass it over to Frank, who will take you through some of the numbers.

Thank you, Will, and good morning, everyone. As Will said, we have made tremendous progress executing our strategy, increasing our Flexgen capacity with OCGTs, Cruachan expansion in process and our investments in BESS. We are expanding our trading and optimization capability while bringing Flexitricity platform into the portfolio, and we are adding a new branch with BSIF solar and wind portfolio as well as a significant pipeline of development options. On a personal level, I'm really happy to be part of this in solving the strategic puzzle and implementing our strategy at Drax. So we have a strong business today, and we will enhance our value through delivering our strategy. Our balance sheet is strong. We are generating cash flows, which can support value-accretive growth and returns to shareholders. But we must operate well and safely and execute our plans diligently to realize this. This includes delivering the value from our acquisitions. So in the first half of 2026, we performed well. Good results generating GBP 279 million of adjusted EBITDA. This is lower than in '25 that was expected and reflects lower achieved forward power prices year-on-year. Adjusted earnings per share of 29.8p was a decrease on the first half of 2025. And this, of course, reflects the reduction in EBITDA and also noncash foreign exchange movements, which were partially offset by a lower depreciation and amortization charge. Net debt of GBP 1.025 billion was 1.3x the last 12 months EBITDA, and this remains significantly below our long-term target of around 2x. And this does not include the impact of BSIF acquisition. Total cash and committed facilities was around GBP 630 million, which is a strong position, and this supports our growth plans for the Group. Our expected full year dividend of 32.2p per share is an 11% increase on 2025, in line with our long-term growth rate. This reflects the confidence we have in our business. And as is our custom, we propose to pay 40% of this as an interim dividend, which equates to 12.9p per share. Then the final leg of our capital allocation policy is returning excess investment capital to our shareholders, and we have returned GBP 47 million via share buybacks year-to-date. And moving on to the next slide, talking a little bit more on the performances by our businesses. Starting with our Pellet Production and Biomass Generation business, which we see increasingly as interlinked through the vertical integration between our operations in the U.S. South and the Drax Power Station. Pellet Production's EBITDA reduced from GBP 74 million in the first half of '25 to GBP 64 million in the first half of '26. It is a function of reduced volumes because of plant closures and outages. And we also showed continued progress on cost reductions, reducing the cost per tonne of biomass produced. And this reduces the headline size of our Pellets business. But because these are internal sales to our Drax Power Station, this actually reduces the costs that are passed through to our generation business, resulting in a lower cost of biomass feedstock as part of a well-established cost plus transfer pricing methodology. Then talking about Biomass Generation, which has performed well and continues to produce large volumes of renewable electricity and system support services, inclusive of a major planned outage. And as I mentioned, the business also benefits from the cost reductions in the U.S. South and therefore, lower prices of internal pellet supply. Our Flexgen business then; EBITDA reduced from the previous year. This is because of an unplanned outage on the Cruachan Units 3 and 4, which is caused by a grid connection failure of assets owned by Scottish Power Energy Networks or SPEN. And as Will noted, planned outage work on these units continues as part of a turbine upgrade, which will, in due course, add 40 megawatts of new capacity. Despite the headwind from the outages on the Units 1 and 2 -- from these outages, the Units 1 and 2 performed very well and maintain a very high utilization rate. Hirwaun also -- has also performed well. We have received capacity market payments for the full 6 months this half year. And since commencing operations in late May, we have been providing power generation and system support services as well. I will talk more about that shortly. Flexitricity performed in line with our expectations and in Energy Solutions, our Industrial and Commercial I&C business performed well as well. It maintained a broadly consistent margin on a small revenue base against a background of lower contracted power prices. So a really good result. Then finally, development expenditure; development spend has reduced as we have been very disciplined in allocating capital to large capital projects against a marked backdrop that does not currently support significant investment in carbon removals. This is in line with some of the expected cost savings that we highlighted at our full year results earlier this year, and we are now realizing this. Then a little bit more on Hirwaun, and I think this is a very interesting slide. In its first month of operations, Hirwaun performed very well. Our OCGTs are designed to operate at times of peak demand, which we normally expect to be focused on winter periods. However, reflecting high summer temperatures and lower wood speed, we saw a significantly higher demand for Hirwaun services in power generation and balancing markets. In addition, Hirwaun is fitted with a clutch mechanism, which allows the turbine to synchronize with the grid in a non-generation mode, helping to stabilize the system without producing any electricity. In total, the station operated in this mode for around 440 hours in June, which is around 60% of the time, as you can see in the graph, as well as operating in the wholesale and balancing markets. And we see this flexibility and breadth of the market opportunity as a source of value to us, but also an essential service to the system, providing stability to the grid, which is absolutely essential. As power demand grows and the system evolves to include more intermittent renewable and flexible generation, we expect these themes will become more pronounced, and this informs our investment case for flexible generation and is also why we believe that having 3 of these OCGTs over time in our portfolio will be value generative. Then moving on to the balance sheet. Maintaining a strong balance sheet remains a key priority. We have no significant maturities remaining in '26, as you can see. The acquisition bridge facility will become available upon the completion of the BSIF deal tomorrow, we expect, and would allow us to repay shareholders in all of BSIF's debt if required. There are some facilities that we will likely retain subject to bank agreement. And then we have expanded maturities on some of our facilities in the first half of this year as well. And because of that, we have significant headroom over our short-term liquidity requirements, as you can see. Credit ratings then; following the BSIF acquisition process, we have engaged all 3 of our rating agencies, and they -- all 3 of them have reiterated our crossover credit rating after the announcement of the proposed BSIF acquisition. They note the diversification benefits and improved business risk, earnings quality and debt capacity. And these conclusions support our ability to grow our business whilst maintaining a strong balance sheet. Moving on to capital investment. We have continued to invest in growth and in our core business, including BESS, pumped storage and the OCGTs. The ongoing planned outage at Drax Power Station is progressing well. And we continue to target between GBP 210 million and GBP 250 million of capital expenditure for the year, and this excludes our acquisitions. Flexitricity has completed, as you know, and BSIF, as Will said, could be finalized tomorrow. Then a bit on cost management. Strong cost discipline is an integral part of our culture. Being disciplined on cost supports our upgraded to 2029 EBITDA target. We are making good progress, putting in place the structures and plans to allow us to succeed and deliver long-term value to stakeholders. This includes both staff cost reductions and reduction in third-party costs. Earlier this year, we set out a target to establish structural savings of over GBP 150 million per year by 2027 compared to a 2024 base year. We are making really good progress, and we will continue to keep an iron discipline with regards to cost control. This is something which I have done successfully in my previous company and something I'm seeking to embed deeply within the Drax culture as well. Then finally, our capital allocation policy. This policy remains unchanged and is at the heart of our financial decisions that we make to make sure that we can successfully deliver growth, value and income to shareholders. Our balance sheet is strong, and we remain committed to a long-term target of around 2x net-debt-over-EBITDA. We will continue to invest judiciously in the core business to deliver safe and efficient operations and deliver options for growth in flexible and renewable energy. Our return to shareholders remain a critical part of our investment proposition. And since 2017, we have returned over GBP 1.2 billion via dividends and share buybacks. Since 2017, the dividend per share has grown on average by 11% per annum, including an expected increase of 11% in 2026. Income returns to shareholders are an important part of our investment case, and we remain firmly committed to our policy to pay a sustainable and growing dividend. And then lastly, to the extent there is a surplus of capital beyond our investment requirements, we will consider the best way to return this to shareholders. The buyback, as you know, is currently on pause, and we will evaluate this program along with the growth opportunities that are available to us. So I'm excited to be here. I'm very pleased to share these results with you, and I look forward to discussing them with you further in due course. And with that, Will, I hand back to you.

Thank you, Frank. Appreciate that. If I move on to Page 18. So NESO's future energy scenarios show power demand is likely to double over the next 25 years, driven by the electrification of heating, transport and new industrial demand like data centers. To help meet this demand, there will need to be up to a sevenfold increase in wind and solar, while at the same time, unabated gas is expected to retire from the system, meaning that while carbon emissions will reduce, the system also will become progressively more dependent on intermittent renewables as well as over time on inflexible nuclear power. And as a result, there's likely to be either too little or too much power on the system at any one point in time. So this system transition creates opportunities for significant investment in renewables as well as in flexible generation, principally in BESS, which NESO believes could quadruple in capacity. So again, as you can see, we think there's a very strong tailwind driving our investment thesis, right? And I would also note that we have a strong view that existing cash flow from incumbent assets are particularly valuable in a world in which it's difficult to connect additional capacity to the grid. We've structured our BESS investments to account for this risk and the proposed BSIF acquisition is another example of how we're addressing it. As you know, we're developing a gigawatt scale pipeline of BESS opportunities, which complement our existing flexible generation portfolio. And having the right assets in the right location at the right time will be critical to success as well having the tools to manage the portfolio effectively. And we are making outstanding progress in this area and have committed about GBP 500 million for over 700 megawatts of capacity as well as acquiring Flexitricity. As you know, we see 2 principal and slightly different routes to creating value from BESS. Firstly, the ownership of physical assets where we believe the locations that we have chosen are optimal and where there are opportunities to invest in the sites further over the long-term. We've acquired 3 development projects for 260 megawatts under a fixed price deal with structures in place that protect us in the event of cost or schedule overruns. That deal also gives us option rights over an additional 289 megawatts of capacity. The second route is through floors and tolls, which provide us with an additional opportunity to access the BESS market and use our deep expertise in trading and optimizing flexible assets. In that space, we've entered into agreements for 450 megawatts of tolls with the developers, Fidra and Zenobe. We will pay them a tolling fee in return for which they will -- they are responsible for building, maintaining and making assets available for us to optimize. We will keep all the revenues from operations other than capacity payments and certain other immaterial ancillary revenues. Importantly, both projects have now taken FID. And finally, the final piece of this puzzle is Flexitricity, which provides a scalable, best-in-class platform for optimizing those assets, both for ourselves and also for third-party owners. So turning to the next slide. So we're growing a balanced portfolio in the U.K., and let me provide a little more color on how we're expecting to do that. So first, we have an existing portfolio, an existing set of expertise that operates across the U.K. power system today. We operate and trade large-scale generation assets, Drax Power Station, Cruachan, our first OCGT and hydro power. And as you know, we're developing those attractive portfolio of BESS assets. And the second thing that we do is we provide route-to-market services for BESS, wind and solar assets, both through our existing business and also through Flexitricity, which we've just recently acquired. In combination, that gives us close to 2 gigawatts for over 2,000 small renewable assets as well as grid-scale assets. Thirdly, we're already a major player in the I&C supply space, giving us significant insight -- the demand side of the equation. So it's logical for us to grow that portfolio by adding solar and wind, which we're starting to do by adding almost 1 gigawatt through the Bluefield acquisition that again, we expect to close tomorrow. So beyond that, we would look to grow the portfolio across the piece by developing the significant opportunities for growth that we already have. And just by way of example, BSIF brings a pipeline of options in BESS and solar with over 500 megawatts of projects, which already have 15- to 20-year CfDs [ as ] only a small part of their overall development pipeline of 2.9 gigawatts. And we will also look to further M&A as and when appropriate. So you put that all together, and we already have strong visibility of growing our megawatts under management that underpins our upgraded expectation for EBITDA in 2029 of between GBP 650 million and GBP 800 million. And again, please note, which I'm sure you guys have all done, that this does not include BSIF, which as we have said already adds another -- sorry, delivered EBITDA of GBP 130 million in 2025. But if you put that all together and you say, well, what is the portfolio that we have the opportunity to develop, we have the potential to grow to 12 gigawatts of operational assets, including what we've already got, what we're already building and options on sites that we already have. And all of that is before we start even talking about DPS, which we'll do now. So if I go to Page 22, the Drax Power Station site, as you know, located centrally in the U.K. and next to one of the country's largest substations includes over 1,000 acres and has 4 gigawatts of grid access. It already has 2.6 gigawatts of flexible renewable generation running and has cooling systems on a secure site very close to the U.K.'s fiber optic network. Now as a first step, it's already the U.K.'s largest power station, as you know, and we expect Biomass Generation to continue to play a long-term role in meeting the U.K. energy demand. On top of that, we're developing plans for a data center, which I'll talk about in a minute. On top of that, we're also evaluating options to utilize inactive legacy infrastructure to provide system support services. For example, we can use power from the grid to rotate and synchronize the legacy units to the grid to provide inertia and voltage management, thereby helping to stabilize the system in exactly the same way, as Frank mentioned that the OCGTs operate in clutch mode. Finally, in the long-term, we are also exploring opportunities to utilize 1.4 gigawatts of non-biomass grid access for new generation. So let's talk a little bit about the data center. So the size, location and infrastructure of the site make the vast power station a good fit for a data center, and we're continuing to develop an option to do that. And as soon as we have more details, we will share those with you. What I can say is the following. It will be a 3-phase project. The first phase for about 100 megawatts using existing infrastructure and transformers to import power directly from the grid. And we will be submitting a planning application for that 100-megawatt data center in the second half of the year. Beyond that, we have 2 more phases that are both behind the meter. The second phase aims to utilize about 500 megawatts of capacity before 2031. And as you know, this is still during the period of the CfD. And so that will be subject to agreement with the U.K. government. And while we haven't had substantial discussions with the government, we are clearly making them aware of our progress as we work on this. And the third phase would follow from 2031 afterwards, adding further capacity up to 1 gigawatt and beyond. Ultimately, this development will represent a multibillion-dollar investment in the U.K., creating thousands of jobs while continuing to support energy security through 2031 and beyond. So turning on Page 25. Just in short, summary. So we performed well again in the first half of 2026. We're already a leading provider of flexible renewable generation in the U.K., and we're taking advantage of a great opportunity to grow that position and develop a full-fledged multi-technology generation portfolio, including solar and wind. We've absolutely begun at pace that investment program, as I've described, and look forward to growing our business through the rest of the decade and well beyond, creating value by investing in the U.K. energy transition. And of course, as we always have been, we will be disciplined in how we approach these opportunities in line with our existing capital allocation policy, and we will be laser-focused on value creation. But let me close by returning to what I said at the start. The U.K. needs to meet a growing demand for power while maintaining energy security in a cost-effective manner and continuing to decarbonize. That is the essence of the energy dilemma. And we believe we can play a significant role in meeting all 3 of those needs. Since 2018, we've grown our business from being a single site 2.6 gigawatt biomass generator to being a multisite portfolio with a range of generation technologies and route-to-market services. We already have more than visibility. We have clearly planned and capital in place to grow that portfolio through the end of the decade across multiple technologies to 7.4 gigawatts under management, almost doubling the position that we had at the end of 2025. In doing so, we make Drax a business focused on a broad range of flexible as well as long-term contracted intermittent renewables. Beyond that, we have a pipeline of further opportunities in both flexible generation and renewables as well as the Drax Power Station, which together represent around 12 gigawatts of operational assets that we can own or manage as well as having opportunities for further growth. And in taking these actions, we believe we can deliver value for our shareholders, all of our stakeholders, while at the same time supporting the U.K. energy objectives and promoting economic growth. And of course, we will update you in due course as we continue to roll out this investment plan. With that, we're happy to take questions.

[Operator Instructions] The first question is from Pavan Mahbubani, JPMorgan.

I'll start with 2, please. Firstly, Will, toward the end of your speech, you talked about the progress on data centers and looking to file a planning application in the second half of this year. Can you shed a bit more light as to how the discussions are going with the relevant counterparties? And should we see the intention to file a planning application as significant progress in those conversations? Any color there would be helpful. And then secondly, maybe more a point of clarification. If I compare today's guidance of GBP 650 million to GBP 800 million post '29 to what you had as GBP 600 million to GBP 700 million before, is the idea that it's GBP 50 million to GBP 100 million coming from BESS or are there any changes to the scope of the GBP 600 million to GBP 700 million versus where we are today?

Thanks, Pavan. Why don't I take the first one, and then I'll ask Frank to take the second one. So on the data center, I think we continue to be in the market talking to various parties. As you know, we've been working with a developer to help us work through the program. I mean, effectively, the decision we've made is that for the 100 megawatts, we're basically putting in a place a planning application that we think will make our offering more attractive and move us a step forward as we continue those discussions. So I wouldn't take it as indicating that we sort of -- that there's something more in those discussions than we've already disclosed. Frank?

Yes. And the second question, you're absolutely correct. The previous guidance was GBP 600 million to GBP 700 million. We've added our expectation for the BESS EBITDA range to that of GBP 50 million to GBP 100 million, which takes you to GBP 650 million to GBP 800 million. And that's still before BSIF, of course, if you add, for example, in 2025, GBP 130 million, and you can make the calculation yourself.

The next question is from Alex Wheeler, RBC.

Just a couple for me as well, sticking with somewhat similar themes, but I just wanted to check on -- just following up on Pavan's question on the data center point. Is this the only step in terms of the planning that you would take prior to announcing an agreement with an offtaker or are there other things that you may ultimately do prior to that announcement coming through? And then just on the GBP 50 million to GBP 100 million on the BESS, I'd be interested to understand how well underpinned you see the GBP 50 million and then what has to happen? And how do you see the opportunity in the market to be at the upper end of that range? And then just lastly, when you talk about the development of other opportunities at Drax Power Station, particularly on the system support services, I appreciate there's a range there, [ '25 ] to 2031. But when -- what may happen there? And I guess, when may we see that potentially coming into numbers?

Okay. So on the data center point, I think the simple answer, Alexander, I appreciate you're looking for other catalysts or other milestones that we might have. I think it's probably -- there's nothing that I can point to now. There would be sort of additional progress that we could sort of point to before actually probably announcing we got a customer. So I would say, as and when we have other information that we think is of value, we will obviously provide that. On the data -- on the BESS stuff, I mean I think that the -- it's really about the range in terms of the volatility in the market, I would say. But I think the GBP 50 million is something we would be quite confident in a downside year that we recover that, GBP 100 million would be more of the upside year. It's -- I mean it's an interesting one because obviously, the market this summer has been a bit unusual, different from normal. I mean the sort of the idea that there's more volatility in summer that was probably more expected in winter in the past. But again, I think it's a function of volatility, I think, quite simply, right? And then on the system support stuff, I mean, the sort of the system operator is running auctions for system support services. One of those has happened. I think the decision on that is, I think, sometime middle of next year. And that actually is then I think that's when we would start building and that takes some time. So I would expect those sort of significant projects to be several years away before they would start producing anything as and when we would sort of win a contract.

The next question from Dominic Nash, Barclays.

I've actually got 3, apologies. The first one is on security of supply. And I think the unprecedented situation that you've kind of alluded to at the moment with the geopolitics, but also the extreme weather. I mean I'll be interested in your view on the threat and potential opportunities for Drax, firstly, with the potential gas crunch coming in winter. Clearly, we've got very low gas storage levels -- we have none in the U.K. And if demand does pick up, then clearly whether or not Drax can benefit from that. The second one is clearly also on the electricity and the sort of alleged cover up by sort of the U.K. grid came quite close to a blackout, whether or not that gives you -- if you can give us some update on what your views there. And then, of course, on the water angle as well, half the country is now in drought. Do you see the potential for extraction and cooling issues for Drax and how your hydro assets are going to perform on those things? Quite a long first one, but it's around, they're all linked. The second 2 are actually quite quick. Remind me on data centers, I think Ofgem is announcing GBP 0.7 million per megawatt development sort of transmission fee. Are you going to be subject to that as part of your development? And thirdly, can you just remind me again on the BESS GBP 50 million to GBP 100 million, I presume you're relying on the T minus 1 capacity auction or are we -- can we model a T minus 4 in that one? And then how can that fit in 2029?

Okay. So let me -- I think there's about 8 questions.

I have another 10, if you want them.

Okay. So let me let me start with the first one. So in terms of security of supply and sort of extreme weather, gas crunch, et cetera, I guess the first thing I would say is that we've run our assets as we always would have expected to run them. We obviously try to endeavor to provide as much supply as we could. And so I feel as though we've absolutely done what we wanted, and we've also responded to the system operator asking us to run and/or in the case of Cruachan run pump, et cetera. So we're very comfortable with the role we're playing in trying to provide energy security for the U.K. In that context, very pleased that the first of the Open Cycle's was online in June. That was doing a small part to help with the security supply challenges. I think it's sort of a simple thing to say, it would have been nice to have 2 other ones up and running at the same time for us and for the system. And unfortunately, they have not been running. I can't comment on what's happening inside the system operator. I can't really comment on how close or not we were to sort of having a system sort of blackout type event. But I would say that I think that the summer situation is going to become increasingly more challenging relative to what it has been, right? You get this combination of a heat wave across the continent, challenges with nuclear cooling water, et cetera, challenges and efficiency of various different types of technologies as it gets hotter and air conditioning sales are going through the roof, right? So I mean it's probably something we should have and we will be expecting to be the new reality. So -- we don't expect any water issues at the Drax Power Station or anywhere. I mean the hydro, clearly the run-of-river is very much sort of water, rain dependent. So that is -- to the extent there's less water, there's less generation. Cruachan on the other hand, there's plenty of water on the bottom and the top. So that isn't very much rain and drought dependent. On your second question, because we're an existing connection, we don't expect to have any issues with that topic. And then on the BESS topic, we have some T minus 4 capacity contracts in place already. And I think the important point probably there is that given the derating on the batteries, it's not a very significant piece of the puzzle. And on the tolled assets, I think the owner actually keeps those payments anyway. So I think that was -- that's probably about 4 of the questions. Are there 4 that I missed?

No, I think you answered them [indiscernible].