Energy News

Good Energy Group increases gas prices by 9.4%

By Martin Fagan - news@consumerchoices.co.uk

But it pledges to hold both gas and electricity prices until 2012.

Proving that even energy companies who generate power through renewable sources are not immune to the rise in wholesale gas prices, green energy supplier Good Energy has announced it is increasing its gas prices.

For the first time since it launched its gas product in November 2008, Good Energy says it will raise gas prices by 9.4%, effective from September 6th 2011. The company blames the rise on “unavoidable increases in underlying wholesale [gas] market prices”.

The award-winning renewable energy business also announced that it intends to hold its electricity prices until at least 2012, after which they will be reviewed again. Good Energy’s last price increase was in August 2008, and this was followed in April 2009 by a price cut.

Good Energy’s gas price increase follows in the wake of price hikes by three of the “big six” energy companies who generate the majority of their power by burning fossil fuels.

In early June, Scottish Power said it would raise the cost of gas by 19% and the cost of electricity by 10%.Two weeks later, British Gas's announced an 18% rise in gas prices and a 16% increase to electricity prices.

In July, Scottish and Southern Energy (SSE) said it would increase prices for electricity by an average of 11% and gas by 18%, effective on 14 September 2011.

“Our gas price increase is much lower than the increases announced so far by other suppliers,” said Juliet Davenport, chief executive of Good Energy.

“Good Energy is proof that decentralised energy can provide the UK with resilience against price volatility caused by relying on energy imported from abroad.”

Commentating on Good Energy’s price rise and price freeze, Lisa Greenfield, energy analyst at Confused.com said: “Opting for a green energy supplier could be one way consumers can protect themselves against double digit hikes for both gas and electricity.

“Renewable energy suppliers often don't come top in the best buy tables but, as global wholesale prices continue to be blamed for increasing costs, for innovative utility companies and their customers, the future looks bright.”