Wed. Oct 4th, 2023
    Good Energy CEO: Price Cap is Pushing Energy Bills Higher

    The price cap implemented by the UK government has driven up energy bills for customers, according to Nigel Pocklington, CEO of Good Energy. Pocklington criticized the price cap as a “terrible public policy failure,” stating that it has cost consumers more money. He also highlighted the lack of urgency in the government’s approach to the energy market and its failure to keep pace with Ofgem’s reforms.

    Good Energy, a renewable energy company, reported a 168% increase in pre-tax profit for the first half of the year, reaching £32.7 million. Alongside its financial success, the company has expanded its services and acquired WessexECO Energy, a solar panel business.

    Pocklington emphasized the need for reforms in the energy sector, including addressing rising bad debt, pricing for renewable-only power, and support for vulnerable customers during the winter. He also mentioned the possibility of implementing a social tariff system using the welfare system to address energy poverty.

    The price cap has been a contentious issue within the sector, with some energy bosses calling for its removal, while others consider it vital for protecting customers from high energy bills. Ofgem has recently consulted on the possibility of implementing a social tariff, but any changes would require legislative action from the government.

    Despite these concerns, Good Energy’s financial performance has been strong, driven by rising tariffs and the recovery of costs from the industry crisis. The company plans to shift its focus towards renewable services and has already made acquisitions in the solar panel sector.

    Source: City A.M without URL