Good Energy Group PLC has confirmed that its Standard Variable Tariffs (SVTs) will remain exempt from the energy price cap.
Ofgem‘s review covered the period from 1st April 2022 to 31st March 2023 and found that Good Energy’s tariffs meet the criteria for derogation.
The energy regulator said: “Based on this analysis, we are satisfied that the Licensee provided sufficient evidence to demonstrate that each of the tariffs listed above meets Outcome 3.
“We will continue to assess that the licensee has satisfied the requirements of the three
outcomes to be eligible for a derogation for these tariffs through the ongoing annual cap
derogations monitoring process.”
The company stated: “Good Energy provided extensive evidence that its model of 100% power purchase agreement (PPA) backed power supplied to customers provides a route to market for small scale renewable generators.”
During the assessment period, 58% of the generators contracted by Good Energy were new connections to the grid and 45% were unsubsidised.
Nigel Pocklington, Chief Executive Officer of Good Energy Group PLC said: “The period assessed by Ofgem was an especially tumultuous one for the wider energy market, showing starkly how global gas prices drive volatility.
“At times Good Energy’s renewable trading model created benefits, which we always seek to pass on to customers.
“At other times it created additional costs, both on-going operational costs such as the consultancy we provide new and existing renewable generators and in risk.
“Our derogation provides us with the flexibility to manage these costs. And it provides our customers with the reassurance that our tariffs, unlike those which are purely certificate backed, help the growth of renewables.”
