Energy supplier Good weathers gas price hikes but bills customers more

Green energy supplier Good Energy has said it is safe from the worst effects of the spike in gas prices, but has put up prices for customers.

The energy supplier, the UK’s greenest by some estimates, said that it had pre-ordered enough gas at fixed prices to see it through the crisis.

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

“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,” it said in a statement.

It added: “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.”