Ecotricity set to disrupt Good Energy sale of renewables assets

Ecotricity has tried to stop Good Energy, in which it is a large shareholder, from disposing of its renewable generation portfolio without its approval.
In November Good Energy put its 47.5MW power generation portfolio up for sale to fund a transition from a renewables utility to an energy services provider and it wants to dispose of the plants this quarter. It plans to drip-feed the cash – it says the plants were ‘undervalued’ at £56 million – into growth in electric transport and decentralised generation. But on 24 December Ecotricity, which holds around a quarter of Good Energy shares following a failed takeover bid last year, sent a ‘requisition notice’ to the Good Energy board requiring it to convene a general meeting of shareholders. The shareholders have to vote on a special resolution to direct the board not to dispose of the generation assets without shareholder approval.
The General Meeting will be held on 11 February. Good Energy’s board has urged shareholders to vote against the change.
In December Good Energy warned that would need to augment its working capital for the winter period. The company is exempt from the price cap and has already raised its standard variable tariff. It plans a second rise of 30% from 17 January, to absorb sustained high commodity prices, which it says are “now expected to continue into the first quarter of 2022” alongside wind generation at a third of seasonal norms. The conditions will reduce profits for the year by a further £3 million, compared with forecasts to the market on 25 November.

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