Good Energy sees first signs of pick up in demand

Good Energy

In a trading statement issued today ahead of its AGM this afternoon, Good Energy Group PLC, the 100 per cent renewable electricity supplier and innovative energy services provider based in Chippenham, says it is starting to see the first signs of increased demand pick up after  lower demand in April, May and June, with an increase in domestic supply largely offset by a decrease in SME volumes, with half hourly business volumes also remaining below normal.

Alongside the reduction in gross profit due to the reduction in supply volumes, the Company has also seen a short-term gross margin impact resulting from wholesale energy price reductions. This resulted in excess power purchased from Good Energy’s independent generation customer base being fed back into a lower priced market. Nevertheless, the Company has successfully offset these impacts through a range of planned efficiencies and management initiatives. The net result is an underlying profit performance in line with the Board’s expectations.

The company’s plans to provide additional SMART services have been impacted by COVID-19 due to delays in home installations. Management will continue to monitor this situation closely and keep actions under constant review.

Last week the company announced that it had increased its initial 12.9% minority stake in Zap-Map to a 50.1 per cent majority equity stake having exercised the right to convert the convertible debt element. Good Energy will continue to work closely with Zap-Map to ensure the delivery of these innovative products and services, including advisory support to accelerate the implementation of the strategy.