Renewable Energy Supplier Opens Price War with the ‘Big 6’

on Aug 1, 2012
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Independent renewable energy supplier Good Energy (GEGP) has announced that it will cut its gas prices for dual-fuel customers by an average of five per cent from 1 August. In a day of good news all round for the company, which guarantees its customers energy supplied from renewable sources, it also celebrated it’s new listing on the AIM stock exchange. The move reflects a reduction in wholesale gas prices and the company’s recent growth in gas users. The change will affect almost all of Good Energy’s customers, decreasing their annual energy expenses.

As a result of the price cut, dual-fuel customers using the typical amount of energy used by a household — 3,468kWh electricity and 13,600kWh gas per year — will see their bills reduced by an average of £35 per year, Good Energy stated. This will come as welcome news for British households being squeezed by the recession and a general rise in consumer prices, including energy. The move also increases the pressure on the UK’s larger energy suppliers to further lower their tariffs after the drastic increases of last year when costumers’ bills went up by an average of about £224. At the beginning of this year the UK companies dominating the energy market, known as the “Big Six”, reduced prices slightly but the cuts only wiped out 15 per cent of the price rises from last year.

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!m[](/uploads/story/214/thumbs/pic1_inline.png)At the beginning of this year, E.ON and British Gas cut their electricity prices, while Npower, EDF, Scottish Power and Scottish & Southern reduced their gas prices. Despite these cuts, with the recent Good Energy decision to reduce its gas cost to customers, the green energy supplier’s main dual-fuel tariff, based on an average domestic property, is now around the same as the “Big Six” standard dual-fuel tariffs.

Commenting on the company’s decision to cut its gas price, Juliet Davenport, CEO and founder of Good Energy, said: “It has never been more affordable to go green with Good Energy.” Davenport also explained that the company aims at offering the most competitive price possible to its increasing base of dual-fuel customers.
Separately from the gas price cut, Good Energy announced it started trading its shares on London’s AIM stock exchange. The firm’s shares were withdrawn from PLUS, where they have been traded since 2004, and were moved to AIM. The company made its debut on the new stock exchange listing this Monday at 8am offering its 12,522,649 shares at the price of five pence each. The move to the AIM is part of the company’s development plan which aims to boost Good Energy’s access to institutional investors, improve liquidity in the shares and enhance the company’s brand and market recognition.

“This is a natural next step for Good Energy. AIM provides better liquidity for our existing shareholders and allows us to reach institutional shareholders for the first time,” said Davenport. Good Energy’s CEO also added that the company is looking forward to growing its customer base and generation capacity as renewable energy is becoming increasingly important part of the UK energy market.

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