Good Energy taps customers for £3.1m equity raise

Written by Rebecca O'Connor on 7th June 2016

The AIM-listed 100 per cent renewable energy supplier has today issued a £3.1 million share raise, inviting customers to invest in shares alongside institutional investors as it prepares for fivefold growth in four years.

Good Energy, which has earned a reputation for excellent customer service alongside its green credentials, has issued 1,495,900 new Ordinary Shares at 208p each.

The Chippenham-based company says it wants to involve more customers in ownership of the company as it continues its mission to transform the UK energy market for the better.

The 100% renewable energy end of the supply market has until recently been dominated by just two players: Ecotricity and Good Energy.

However, a number of measures designed to encourage switching and new, often cheaper entrants to the market such as Bulb, as well as a greater share of renewables in the mix at other more mainstream brands such as M&S Energy, have meant that the dominance of these two challengers to the Big Six is now in turn being challenged.

Good Energy’s first windfarm in Delabole, Cornwall was bought through customer shares in 2002 and its first bond offer to customers, in 2013, raised £15m three weeks before it closed.

Juliet Davenport, OBE, Founder and CEO of Good Energy said: “Our customer numbers, renewable energy generation and revenues are all growing fast. We believe our customers are at the heart of our business and should have the option to share in the success of Good Energy. This new share offer gives them the chance, alongside our institutional investors, to be part of the next stage of our growth journey and our exciting plans for the future.”

Good Energy’s share offer will raise up to £3.1m to:

  • Improve customer experience through a new operational platform
  • Invest in new systems to reduce cost to serve and customer acquisition costs
  • Develop existing and new renewable energy generation sites to maximise value
  • Strengthen Good Energy’s financial position and future profitability

The share offer closes on June 19.

For more information on the Share Offer, please see Good Energy share offer.