Good Energy hikes prices for customers despite weathering gas price spike crisis

AN energy supplier is putting up prices for its customers, despite saying it is safe from the worst effects of the spike in gas prices.

By Matthew Mohan-Hickson
Monday, 11th October 2021, 11:17 am
Updated Monday, 11th October 2021, 11:25 am

Good Energy said that it had pre-ordered enough gas at fixed prices to see it through the crisis.

The company is the UK’s greenest energy supplier by some estimates.

Bosses said they have bought 90 per cent of the gas that they will need over the next year, a practice known as hedging.

Good Energy is putting up prices for customers despite avoiding the worst of the gas price spike crisis. Picture: Matt Cardy/Getty Images

In a statement, Good Energy said: ‘Despite the ongoing volatility in the UK energy sector and low wind speeds in (the third quarter of) 2021 impacting performance, there is no change to Good Energy’s full year expectations.

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‘However, the business, like the sector at large given recent supplier exits, remains subject to a higher level of market risk.’

Gas prices have soared in recent months, and are now more than four times higher than at the beginning of the year.

This has put pressure on companies that supply energy to households and businesses, especially those that have not hedged, or only hedged part of their needs.

Some unhedged suppliers will now be paying more to buy gas than they sell it for, an unsustainable situation for most businesses.

In September alone, nine energy suppliers went out of business. Between them they had more than 1.7 million customers.

But unlike most energy suppliers, Good Energy is not restricted by the Government’s cap on energy bills.

When the price cap was introduced, Good applied for an exemption due to its environmental credentials, and this was granted.

This leaves Good free to change its energy prices, unlike companies that are regulated by the price cap. This cap is keeping prices lower than many companies can afford for now.

Good said: ‘The business has recently implemented material price increases in both domestic and business supply segments reflecting the rapidly changing current market conditions.’

The company also brought back its dividend. It had promised to do so after seeing off a hostile bid from rival green supplier Ecotricity.

‘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,’ said Good Energy chief executive Nigel Pocklington.

He added: ‘The challenges within the UK 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.’

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