Strong customer growth, particularly for gas, has helped Chippenham-based renewable electricity supplier Good Energy overcome a reduction in demand caused by the mild winter.
Increased marketing and business improvements should also strengthen its position at the forefront of the independent renewable electricity supply and generation sector, it said in a trading update for the six months to June 30.
The firm, quoted on the London Stock Exchange’s AIM market, said in common with other suppliers in the industry, it had seen a reduction in demand for energy during the first six months of the year as a result of the mild winter.
It expects its full-year performance to be in line with its expectations as long as it achieved a good level of profit from its recent sale of a solar site in Norfolk, continued customer growth and no further reduction in energy usage.
During the period, Good Energy enjoyed 36% growth in supply to customers with increased market share across all segments of the market – gas was the best performer with 82% growth. It was also voted top of the Which? Magazine energy company customer satisfaction survey for the third consecutive year.
Pictured: Nick Clegg with Good Energy founder Juliet Davenport, directors and staff outside its Chippenham HQ
Its generation business was boosted with planning approvals for two solar parks totaling 55MW while a 5MW solar park in Dorset was commissioned and a second 1.8MW solar park in North Cornwall went live. Production from its wind farms rose 13%.
Chief executive Juliet Davenport OBE, said: “Our strong customer growth so far this year demonstrates that our offer of competitive pricing, 100% renewable electricity and award-winning customer service is compelling to an increasing number of consumers and businesses. Alongside managing our cost base appropriately, the significant increase in customer numbers is expected to drive future momentum.
“We have made huge strides in developing our generating capacity and now have contracts in place with 800 independent generator supply sites. Our continued investment towards our owned generation of 200MW target is indicative of our commitment to deliver a cleaner, greener and more secure energy source for the UK, the importance of which is highlighted by continued political uncertainty in Eastern Europe.”
As reported by Swindon Business News, Good Energy has agreed to sell a 49.9MW solar site in West Raynham, Norfolk, to a member of the Chinese Trina Solar group for between £3.4m and £6.8m cash with a net profit of between £1.4m and £3.8m depending on when the site is completed and commissioned.
- Good Energy was praised by Deputy Prime Minister Nick Clegg last week when he visited the firm’s Chippenham headquarters and met many of the 250-strong workforce. He said Good Energy was one of a growing number of smaller energy companies challenging the big players and increasing competition in the market.