Clean energy supplier Good Energy has said that it has faced a “more challenging” winter period to date than expected and warned of “exceptional volatility” in the short term power market.
In a trading update issued to the market this morning, Good said the short term power trading market had proven to be more volatile than expected between late October and late November and, as a result, the company was now only expected to meet the lower end of market trading expectations for that period.
In addition the company caveated that it would only do so if the “more favourable trading conditions” experienced so far in December continued until the end of the month.
“While the short term trading conditions have been tough from late October through to late November we have seen a return to more normal trading conditions in December,” Juliet Davenport, chief executive at Good Energy, said.
Shares in Good fell sharply before the market opened, falling nearly 6% from yesterday’s close price of 276p to 260.2p.
The warning comes less than a month after GB Energy Supply collapsed citing “swift and significant” energy price hikes in recent months, and little more than two months after Co-operative Energy boss Ramsey Dunning warned that such an event could happen at this year’s Clean Energy Live event in early October.
“This winter is going to be difficult for some,” Dunning said, adding: “There are undoubtedly products around which are loss leaders and are going to lose money for suppliers which is storing problems up for the future.”
In late October rival supplier Ecotricity acquired a significant stake in Good Energy, taking its share from 5.58% to nearly 25%, prompting speculation that the Dale Vince-led company could mount a takeover bid in the future.
