Good Energy announces electricity price rise

RNS Number : 3747P

Good Energy Group PLC

24 October 2012

 



24^th October, 2012

Good Energy Group PLC

("Good Energy" or "the Company")

Good Energy announces electricity price rise, gas prices remain unchanged

Good Energy, the UK's leading100% renewable electricity supplier, is raising its electricity prices by an average of 9% on 5^th December 2012. After over four years of no electricity price rises, the change is due to a series of increases in the cost of delivering electricity to its customers.

With winter on its way, Good Energy is pleased to announce its gas price is not changing. This means Good Energy's dual fuel tariff cost about the same as the Big Six's standard dual fuel tariffs, something Good Energy expect to be able to continue, if not improve on, in the future.

The electricity price change is primarily due to the costs of upgrades to the electricity grid, such as supplying homes with new technologies like smart meters and improving the distribution and transmission network for electricity. These costs have gone up by more than 50% over the past four years and affect both unit rates and standing charges.

The Company has been able to cushion its customers from these changes thanks to improvements in its ability to trade renewable energy in the wholesale markets and new efficiencies in its power trading systems, including through investment in better weather forecasting data. In 2010 it also repowered its wind farm at Delabole, which provides the company with around 16% of its power needs (up from 7%), and has allowed the supplier to better manage its pricing.

Juliet Davenport, CEO and founder, Good Energy, says: "We appreciate that any increase in price is not good news for customers. We understand the importance of price stability and have succeeded in avoiding an electricity price rise for the last four years. Our strategy will continue to focus on how we can maintain this into the future by building 110MW of new renewable generation capacity by 2016, increasing the number of independent generators we buy from, decreasing cost of serving our customers and continuing to invest innovating our trading services."

-ends -

Enquiries:

Good Energy Group PLC    Juliet Davenport, Chief Executive	01249 766 795
N+1 Brewin - Financial Adviser & Broker   Andrew Craig, Ben Wright	0845 213 1000
Kreab Gavin Anderson - Financial PR Advisers Ken Cronin, Kate Hill, Andrew Jones	020 7074 1800

NOTES TO EDITORS

·      For Good Energy dual fuel customers, this price change will mean an average increase of 3.39% to their annual bill. This is the equivalent to around £45/year, less than £1/week and is based on 3,300kWh electricity and 16,500kWh gas consumption.

·      Good Energy's price change history:

·      Good Energy last increased its electricity prices in August 2008 (just over four years ago) when domestic electricity prices went up by an average of 16% across all regions. This was followed by a decrease of an average of 7.5% just six months later.

·      Since then Good Energy has been working consistently to try and keep its prices as stable as possible. The key areas of investment in the business over that period have all been aimed at reducing costs and include:

o  Investment in new customer management systems so that they can be managed more efficiently.

o  Investment in weather forecasting capability, so they can manage their 100% renewable electricity portfolio more efficiently.

o  Repowering of their wind farm in Delabole in order to provide Good Energy with a long-term source of power. This helps specifically with price stability.

·      What is Good Energy doing to protect its customers from future price rises?

·      In 2013 Good Energy is investing in its in-house trading systems so they can further reduce the cost of buying renewable electricity through improved weather system information and trading directly into the market on a daily basis.

·      Throughout 2012 Good Energy has been working on bringing in a new customer management system, which should help them reduce their costs and improve their service.

·      Good Energy has plans to build 110MW of new renewable generation capacity by 2016. This will include wind, solar and possibly small (less than 10 MW)  hydro. This should allow Good Energy to purchase around 50% of their own sources by 2016, giving them far more control over their pricing.

·      Finally, the key thing that Good Energy will do to help customers reduce their bills is support them in using less energy. Their customers already use 10% less electricity than the average consumer and Good Energy will continue this trend by further developing their industry-leading Customer Care team's Energy Saving Trust-endorsed efficiency advice service

·      Good Energy is the UK's leading 100% renewable electricity supplier. To compare the fuel mix of other suppliers please visit: www.electricityinfo.org/suppliers.php

·      Good Energy has 30,000 domestic and commercial electricity customers, 6,700 domestic gas customers and supports a growing community of 39,000 independent green power generators across Britain

·      Good Energy came top in the Which? customer satisfaction survey for energy suppliers in 2010 and 2012

·      Good Energy has won numerous awards including: the Business Green Leader of the Year 2012, PEA Business Award CEO of the Year 2012, the First Women Award (Retail and Consumer) in 2011, PLUS markets CEO of the Year in 2009 and 2010, 2011, Ethical Investment Hero 2012.

·      Visit www.goodenergy.co.uk, follow Good Energy on Facebook and Twitter

 

END

 

 

MSCUOURRUVARUUA