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Good Energy profits hit by low weather-linked demand

Renewable energy firm Good Energy has reported its profits before tax for 2014 at 33 per cent below the levels seen the previous year due to lower temperature-led customer demand.

The generator and supplier said on Tuesday that its profits were just £2.2 million compared to £3.3 million in 2013, despite revenue growing 43 per cent year on year as its customer base grew 34 per cent.

“In common with the rest of the market, challenging trading conditions resulting from the warmest year since records began led to reduced energy use by consumers, impacting on profit before tax for the full year,” the company said.

But chief executive Juliet Davenport said the year had still been one of “good progress” towards the company’s strategic objectives.

“We have delivered strong customer growth, continued to invest in customer service excellence and in our growing generation portfolio, and have secured the funding required for the next phase of our growth strategy,” she said.

The company’s total owned generation output increased 55 per cent to 42GWh, while its customer base grew by 30 per cent for electricity supply and 67 per cent for gas supply, the report shows.

“As such, we are confident that we are well positioned to respond and adapt to further changes in the market place and to continue to deliver growth,” Davenport added.