Utility firm Good Energy has become the latest energy provider to hike its gas prices, but in a surprising move the company announced yesterday that it would be freezing electricity prices for its customers until 2012.
The eco-friendly company will however be raising its gas prices by 9.4% from 6 September, despite previously stating earlier in the year that it was hoping to fix its gas costs until the end of 2011.
As the UK’s 100% renewable electricity supplier, Good Energy serves 26,000 homes and businesses across the country, using renewable technologies such as solar panels and wind turbines. The energy provider hasn’t increased its electricity prices since August 2008, but says it has been necessary to implement the price rise due to rising wholesale costs as a result of the nuclear disaster at Japan’s Fukushima power plant back in March.
However, unlike British Gas, Scottish Power and Scottish and Southern Energy – who have increased their gas prices by double digits in recent weeks – Good Energy have been able to keep their gas prices lower because the firm had become “more efficient” in trading wholesale gas since they launched their gas tariff back in November 2008.
“As global wholesale prices continue to be blamed for increasing costs, the future is bright for innovative utility companies and their customers,” said Lisa Greenfield, an analyst at Confused.com.
According to the founder and chief executive of Good Energy, Juliet Davenport, the company has been able to freeze its electricity prices because they source their energy from renewable technology. Thanks to the company developing new sources of green energy – not to mention improvements to their weather forecasting techniques – has enabled Good Energy to hold its electricity prices.
“Good Energy is proof that decentralised energy can provide the UK with resilience against price volatility caused by relying on energy imported from abroad,” commented Ms Davenport.
With savings associated with renewable energy becoming more and more attractive – especially to hard pressed energy customers – analysts are warning larger suppliers to “take note”.