Domestic supply customers fall, FIT customers rise at Good Energy

Good Energy saw its domestic supply customers fall by 8% in 2019, according to preliminary results for the year to 31 December.  However, that loss was outweighed by a surge in feed-in tariff installations in advance of the scheme closing in Q1 2019, which boosted the company’s contracts in administering FIT tariffs – an important part of its income.

Domestic FIT contracts rose by a third (32.5%) to 46,700, while business FIT customers rose by 3.8% to 120,000, of its 127,000 business customers.

Chief executive Juliet Davenport said of the FIT administration “We continue to have one of the largest market shares in this industry and it remains an important aspect of our business, as it is the foundation of energy as a service in our business model

Income from FIT administration rose from £4.8 million in 2018 to £5.25 million in 2019.

On domestic supply, Davenport said in the update that the company would avoid current supplier price wars, saying “We do not see the race to bottom in price as a viable long-term business model”. Good Energy as won a derogation from the standard variable price cap from Ofgem in August last year. However, it plans to reduce customer churn and “acquire new customers with a lower cost to serve and acquisition cost”.

The customer proposition will include in-home devices, connected sensors and home hub and smart thermostats. Davenport said “We are already rolling these out to a small number of our customers and will begin a larger scale rollout throughout 2020.”

The company highlighted “a significant opportunity to expand our offering in the mid-market industrial and commercials” with offerings such as One Point, a recently launched electric vehicle charging solution for businesses.

Operating profit for the year fell by 3.2% to £6.4 million. During the year Good Energy Brynwhilach Solar Parkwas sold but a transformer and wind development project both failed to find buyers and their value was written down to zero.

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