Decentralised renewables are more essential than ever in fighting rocketing fossil fuel costs, the CEO of green power services specialist Good Energy said today.
Nigel Pocklington, pictured, unveiled interim results for 2022’s first six months, showing the now generation-free retailer and service operator posting a pre-tax loss on underlying activities of £0.7 million, depressed from 2021’s half year £4.8 million profit, thanks in part to Zap-Map’s financial under-performance.
Zap-Map’s total registered users more than doubled in twelve months, reaching to 455,000 by June. The EV charging services app was valued at a notional £26.3 million during its £9 million funding round in August. FleetCor contributed £5.3 million. Funded now for overseas expansion, ZapMap will post separate accounts after its parent’s next full year results.
Good Energy quit power generation in January, announcing the sale of its 47.5MW wind and solar portfolio to Bluefield Asset Management. The £21.2 million receipts to date have left the supplier now substantially debt-free, today’s results confirm.
Rising costs of wholesale green gas halved gross margins in 2022’s first half from 2021 levels, to 11.4%. Sales inflated by increased tariffs soared 57.5% to £107.6 million.
Pocklington described Good Energy as ‘well hedged’ for winter, highlighting the firm’s £22.2 million cash pile. An incremental process of buying forward will continue.
Customer accounts increased marginally to just under 277,000, thanks to what the firm called “a focus on collections and long-term relationships”. Domestic accounts increased 2.6% to 86,600, but business accounts dropped 10% to 9,800.
Feed in tariff (FiT) customers, suppliers of all the firm’s retailed power, rose 0.7% to 180,500.
Operational highlights included integrating two billing platforms, Ensek and Octopus’ Kraken, resulting in an ‘Excellent’ rating on Trust Pilot.
Growth for Good Energy will come in a blend of investment and organic performance, its CEO told investors.
Pocklington expects the Truss government’s Energy Bill Support Scheme will minimise impact on customers of rising forward prices over the medium term. Details of the scheme are due to be presented tomorrow by new energy secretary Jacob Rees-Mogg.
“Good Energy has been vocal in stating that the only solution in the short term is Government support and demand reduction, with an accelerated roll out of renewables in the medium to longer term”, the Good Energy boss asserted.
“The rising cost of energy and multiple supplier failures only serves to highlight a greater need for renewables to play a vital role in our long-term energy strategy”, Pocklington went on.
“Not only will a shift to cleaner, local electricity sources cut the UK’s carbon, it will cut the UK’s ties to fossil fuel driven global markets. As a trusted leader in local, decentralised clean power, Good Energy’s core purpose has never been more relevant”, he declared.
“Demand for clean energy products like solar, storage and electric vehicles is soaring as customers look to cut costs and gain control of their energy. Our mission to help one million homes and businesses cut carbon.. has never been more needed.”
By late morning Good Energy’s share price was unchanged on the AIM index.