Profits up at Good Energy as it continues to gain customers

Independent supplier Good Energy has reported a sharp increase in profits in the six months up to the June, along with rising revenues and continued growth in customer numbers.

The firm’s EBITDA jumped by 72 per cent on the same period last year to £6.2 million. Revenues rose by two fifths to £45.6 million, and its operating profit was up by three fifths at £3.6 million.

The number of electricity customers increased by 31 per cent year-on-year to 72,250, and the number of gas customers increased by 54 per cent to 43,000. The number of Feed-in Tariff accounts grew by 33 per cent to 124,500.

“As our continued customer growth demonstrates, UK consumers are increasingly moving away from fossil fuels and choosing Good Energy,” said chief executive Juliet Davenport.

“We continue to invest in the company as we build our digital capacity and we expect that the first stage of our system investment will be completed before the end of the year. Additional roll outs will occur across the company in 2017. We feel optimistic about the opportunities this investment provides as the UK energy market transitions to SMART.

“Our strong results supported by our recently oversubscribed share offer, investment in systems and continued focus on internal efficiencies, innovation and customer service excellence will help Good Energy successfully meet the changing demands of the UK energy market.”

Good Energy’s performance was aided by the sale of its 4.65MW Wrotham Heath solar farm for around £500,000 and improved margins in the supply business. It said it had made “solid progress” in its five-year strategy to achieve a fivefold increase in customer sales by the end of 2020.

Following the commissioning its new 5MW Oaklands Plantation solar project, the company ended the period with an installed capacity of 52MW, covering seven solar sites and two wind farms. Good Energy also received planning permission for a 2MW solar farm at Delabole in Cornwall in the first half of the year, meaning it has now gained consent for more than 150MW of solar capacity.

Looking ahead, the firm’s short term focus is ensuring two 5MW solar projects meet a March 2017 deadline to qualify for government subsidies under the Renewables Obligation scheme. In the medium term its attention will shift to the 90MW of wind capacity it has in development, and over the longer term to tidal power, which it believes will offer “a significant source of energy in the future”.

Good Energy welcomed “the alignment of energy and business policy” following the government’s decision to axe the Department of Energy and Climate Change and fold it into a revamped business department.

The company highlighted “increased volatility of wholesale energy prices” in the wake of the Brexit vote “given the UK’s reliance on imported fuels”. It said some suppliers were increasing their prices as a result, and that its strong hedging policy meant it was in a good position to take advantage of the added volatility. 

Last month Good Energy agreed a deal to enable its business customers to access Open Utility’s Piclo software so they can buy renewable energy from local generators.