Good Energy seeks to power new strategy through customer share offer

Clean energy utility and renewables developer Good Energy has today launched a customer-focused share offer to help power its new strategy.

Just under 1.5 million new ordinary shares are to be made available at 208 pence per share, with Good Energy seeking to raise £3.1 million.

The utility has said the proceeds – expected to be around £2.7 million – would be used to achieve its aim of increasing its customer numbers five-fold by 2020. Investments will be made in its operational customer platform, the development of new generation assets and to improve the company’s long-term financial position.

Addressing would-be investors in the company prospectus, Good Energy chief Juliet Davenport OBE said the company was “embarking on the next stage of our growth journey”.

“The transition to renewables has never been more urgent. Our aim is to give consumers and businesses a choice in where their energy comes from. We need to accelerate away from the old-fashioned fossil fuelled system, to a modern, decentralised low-carbon system; one where businesses, consumers and communities take control and play an active role in the market,” she said.

The share offer comes amidst a period of change at Good Energy which has seen the utility cut its generation asset development team following the reset of renewable energy subsidies in the UK.

Good’s prospectus has provided an update on the process of its new strategy which has been separated into three specific phases. Phase one will see its development team “refocused” and redeployed ahead of a secondary phase which will see the team focus on battery storage technologies and community ownership models.

The company will also look to develop financial models for the deployment of renewables without subsidies, before focusing on grid-parity opportunities in phase three.

This will sit alongside a separate strategy for Good’s feed-in tariff related business – the utility is the UK’s largest administrator of the FiT – which will see it look to increase its productivity in the area.

The company has however hinted at a FiT acquisition drive during the third phase of its new strategy wherein it will purchase bases of existing FiT customers.

“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,” Davenport added.

Those interested must invest a minimum of £520 in exchange for 250 shares prior to the application deadline on 19 June. Offer results will be announced on 22 June before shares are allotted a day later.