Good Energy in position to weather energy crisis – CEO
Renewable energy supplier Good Energy has insisted it is in a good position as small energy firms struggle to stay afloat.
Business Secretary Kwasi Kwarteng today (Monday) held crisis talks with industry bosses including Centrica and E.On.
The UK’s sixth-largest energy company, Bulb, is seeking a bailout, while four smaller firms are expected to go bust in the coming days.
People’s Energy, Utility Point, PfP Energy and MoneyPlus have all ceased trading in the past month. Hub Energy was the first to fall back in August.
At the beginning of 2021 there were 70 energy suppliers in the UK, but industry insiders say there may be as few as 10 left by the end of the year.
The crisis has been sparked by high demand for gas and reduced supply, leading to a surge in wholesale prices, which have increased by 250 percent since January.
Many energy firms had offered customers low prices to encourage them to switch – and are now unable to pass on higher wholesale costs because of the government’s energy price cap, which is the maximum price they can be charged.
This morning the CEO of Chippenham-based Good Energy, Nigel Pocklington, said pricing below cost had been a risky approach.
“It’s an extraordinary time in the market,” he said. “The risky approach so many new entrants have taken, pricing below cost, is now coming home to roost.
“Unfortunately the impacts will be felt by both customers and the more prudent suppliers in the market.
“The climate emergency already made our transition to renewable sources urgent.
“What’s happening now shows it’s also urgent in order to protect customers today.
“We need to get away from our reliance on volatile fossil fuel markets as fast as possible, and switch to a system with a backbone of wind and solar.”
Last week Good Energy announced a gross profit increase of 19.4 percent to £17.7 million and profit before tax increase to £3.9 million for the first half of 2021, with a gross cash balance of £9 million.
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