The UK’s energy market has seen wholesale prices steadily increase throughout 2018. The price of power has risen 30% since January, which was when Good Energy last increased its prices. Despite these difficult market conditions, we have an expert renewable trading team who have helped us hold our prices throughout the year, while many other energy companies have increased theirs.
However, the continued increase in wholesale market prices means we expect to increase our own tariffs in early 2019.
The reasons for price rises are due to the centralised energy market we are tied into. We know global fossil fuel demand is high and Europe’s gas storage levels have been low this year. Good Energy is exposed to these fluctuations in the market and the knock-on effects they have on what suppliers are willing to pay. For example, if the cost of gas from a West Siberian giant gas field goes up, so too does the cost of electricity from a lone wind turbine on an independent West Yorkshire farm.
Economic and political unrest in different regions has also played a role in pushing up oil prices over the past 18 months. Other indirect factors, such as the increasing cost of transporting fuels to meet demand, are also having an impact. These global trends inevitably put pressure on energy suppliers, however big or small, and it means we have to review our tariffs as a result.
The main takeaway from these developments is the need to wean ourselves off fossil fuels and move away from a centralised energy system. A decentralised model which embraces domestic clean energy is both essential to protect customers while fighting climate change.
Good Energy works with 1,400 UK generators to source 100% renewable electricity for our customers. We ensure those generators are paid a fair price for their power. In addition, we also partner with 140,000 homeowners who generate their own power. And it’s by creating these smaller, decentralised energy models that we can minimise the impact of price changes for the longer term.
We continue to pay our staff a living wage and remain committed to ensuring we have a UK based customer care team.
Our vision for the future is simple: more renewables on the grid will help wholesale prices to come down over the long-term. That way we can continue to forge a long-term cleaner, greener energy future.
We are committed to ensuring that our prices are fair for both customers and our 1400 renewable generators Our model is one that seeks to ensure continued investment into the renewables market, and take us towards the cleaner, greener future that we need.
CEO and Founder, Good Energy
There are lots of things you can do to make sure you’re only paying what you need to for the energy you use, from improving the energy efficiency of your home to making sure you’re on the tariff that best meets your needs. If you’d like to talk to one of our team about ways in which you can take control, call us on 0800 2540004 and select option 1, or email firstname.lastname@example.org.