Green energy supplier Good Energy has said its full-year performance expectations remain on course despite the sector’s ongoing crisis, but it has increased prices for its customers.
In a trading update on Monday (October 11) the Chippenham-based firm said the ongoing volatility in the 海角视频 energy sector, which has been hit by a spike in gas prices, and low wind speeds had affected its Q3 results.
The company said it had pre-ordered 90% of the gas that it will need over the next year, which “limits exposure” to effects of soaring prices, which are four times higher than at the beginning of the year.
In the statement the business noted the recent collapse of nine small energy providers, and said the business and the sector at large remained subject to a “higher level of market risk”.
Good Energy said it had implemented material price increases in both domestic and business supply segments, reflecting the rapidly changing current market conditions.
Unlike most energy suppliers, Good Energy is not restricted by the Government’s cap on energy bills, as it is exempt due to its environmental credentials.
The company said: “While we have made positive strides in addressing the changing nature to our industry, we remain vigilant to the speed of changes and volatility in supply markets.
“Customer billing and collections remain a core short term focus to minimise working capital stress and maintain a cash buffer over the winter.”
Most Read
Good Energy highlighted “positive trends” in its long term growth markets, including a record breaking month in the 海角视频 Electric Vehicle market in September, with one in seven of all cars sold being a battery EV - a near 50% increase from September 2020.
The company said its EV mapping platform Zap Map was continuing to “perform strongly”, with further rollout of Zap-Pay with key chargepoint operators and a pipeline of products planned for the remainder of 2021 .
Nigel Pocklington, chief executive of Good Energy, said: "Despite the recent volatility in wholesale energy prices, we remain positive on the long-term opportunity in our chosen markets.
“Recent electric vehicle sales data proves the acceleration of adoption and reinforces the scale of opportunity for Good Energy in this market.
"Zap-Map continues to have an exciting future as the leading EV mapping platform. We look forward to continuing to invest in the EV market and supporting Zap on the next stage of its journey.
"The challenges within the 海角视频 energy sector have been well documented, but - with 20 years' experience - we remain differentiated through strong governance, a prudent approach to risk management and a genuinely differentiated green product.”
The announcement comes after an improved takeover offer for the company from fellow green energy supplier Ecotricity lapsed on Friday (October 8).
Don’t miss
Ecotricity, owned by Gloucestershire-based businessman Dale Vince, increased its bid to acquire Good Energy to £4.00 a share, as part of a proposed buyout worth around £70m, including the shares it already owns in its competitor, which amount to around 25%.
Good Energy said that the bid had lapsed after it was accepted by shareholders representing 36.5%of the company - short of the 50% required.
Mr Pocklington said: "Now that Ecotricity's cash offer has lapsed, I am pleased to be re-starting the dividend for our loyal shareholders.
“We reiterated our intention to resume the dividend this year and intend to maintain a progressive dividend policy. This evidences our continued commitment to all our stakeholders and progress in delivering Good Energy's strategy."
Like this story? Why not sign up to get the latest South West business news straight to your inbox.