Profits at Good Energy rise on customer gains

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GOOD ENERGY, the electricity and gas supplier founded and run by green entrepreneur Juliet Davenport, nearly doubled core profits last year to £5m as it benefited from a row over energy prices charged by the country’s biggest suppliers that led to customers switching providers.

The Aim-listed company attracted 14,500 new customers last year, allowing it to earn higher revenue and increase earnings before interest, tax, depreciation and amortisation by 85 per cent.

The Big Six energy suppliers came under fire last autumn when opposition leader Ed Miliband accused them of inflating prices, kicking off a political row over the cost of utility bills.

The debate played into the hands of Britain’s small energy suppliers, such as Good Energy, promising fairer tariffs and better customer service.

“The political focus on the domestic energy market and energy price increases look set to continue through 2014 and beyond,” said Ms Davenport.

Good Energy, which supplies electricity generated from green energy plants such as wind and solar farms, increased its customer base by 36 per cent year on year in 2013 and received consents to build around 100 megawatts of new solar plants.

The company has invested £16m in a wind farm at Hampole, near Doncaster, which started operating last month. The farm has a total generation capacity of 8.2 MW, almost doubling the amount of electricity Good Energy can generate from its own sites.

The energy supplier’s cash balance stood at £18m at the end of last year after it raised money selling generation assets and equity and bond issues.

Ms Davenport said the money would be used to make investments in wind, solar and hydro-electric power plants and marketing the company’s brand.

She added: “Our rapid customer growth, including from households generating their own power, demonstrates the growing appeal and value of renewable energy.”