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Good Energy profits hit by rising wholesale costs

29 March 2023
The Business Magazine article image for: Good Energy profits hit by rising wholesale costs
27 May 2021 Image taken for Good Energy for internal and external corporate communications purposes. Nigel Pocklington Photo by Tim Gander. © Tim Gander 2021. All rights reserved.

Chippenham-based renewable energy supplier Good Energy has recorded a cut in profits because of the rising wholesale costs of electricity and gas.

The company reported a 70 per cent rise in revenues to £248.7 million for last year - up from £146 million in 2021.

But while its gross profits rose to £29.9 million - up 10 per cent from a year earlier – the firm said underlying margins had dropped from 18.5 per cent to 12 per cent for the same period.

Overall, the company recorded profits after tax of £9.2 million, up from £1.6 million in 2021.

Chief executive Nigel Pocklington told investors that the company aimed to become a leader in green energy services – helping customers to generate their own power and heating with solar panels and heat pumps.

"2022 was an enormously challenging year in energy," he said.

"The knock-on effects of the Ukraine conflict saw energy prices surge, driving increased costs which we were forced to pass on to supply customers in the form of price rises. Therefore, the vast majority of Good Energy's positive performance came from areas other than energy supply.

"We have made significant strides in delivering on our strategy to become a leader in green energy services, and this momentum has continued with strategic milestones already achieved in the first quarter of 2023.

"As the UK's second biggest solar power payments company with more generator customers than supply, and which paid out a record amount to renewable generators in 2022, we are already the go-to energy company for solar generators.

"There is a potential £5 to £10 billion growth market in clean energy technology installations among climate-conscious customers. We are ideally positioned for this, and are kitting homes out homes with solar panels and batteries now and plan to install 12,000 heat pumps by 2026."

Peter Davison is deputy editor of The Business Magazine. He has spent his life in journalism – doing work experience in newsrooms in and around Bristol while still at school, and landing his first job on a local newspaper aged 19. By 28 he was the youngest newspaper editor in the country.

An early advocate of online news, he spent the first years of the 2000s telling his bosses that the internet posed both the biggest opportunity and greatest threat to the newspaper industry and the art of journalism. He was right on both counts.

Since 2006 he has enjoyed a career as a freelance journalist. He lives in rural Wiltshire with one wife, two children, and three cats.

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