2016
ANNUAL REPORT
& FINANCIAL STATEMENTS Annual Report
Good Energy - 2016 highlights 1 – 5
Strategic Report 6 – 21
Chairman’s Statement 7 – 8
Strategic Review 9 – 12
Corporate Responsibility 13 – 14
Chief Executive’s Review 16 – 18
Chief Financial Officer’s Review 19 – 20
Approval of Strategic Report 21
The Good Energy Group PLC Board 22 – 23
Directors’ Report 26 – 30
Corporate Governance Report 31 – 39
Directors’ Remuneration Report 40 – 47
Independent Auditors’ Report to the members of Good Energy Group PLC 48 – 51
Financial Statements
Consolidated Statement of Comprehensive Income 53
Consolidated Statement of Financial Position 54
Parent Company Statement of Financial Position 55
Consolidated Statement of Changes in Equity 56
Parent Company Statement of Changes in Equity 57
Consolidated Statement of Cash Flows 58
Parent Company Statement of Cash Flows 59
Notes to the Financial Statements 60 – 103
Directors and Corporate Resources 104
Contents 1
Strategic Report Directors’ Report Financial Statements
2016 ACHIEVEMENTS
our 
energy 
became
Our new website and customer information system will enhance our customer 
experience, enable the testing of new marketing channels with innovative taris 
and drive internal eciencies reducing operational costs.
Good Energy launched the 
UK’s ﬁrst peer to peer 
platform for buying and 
selling renewable electricity, 
enabling commercial 
customers and renewable 
generators to trade electricity 
online themselves.
OUR COMPETITIVE 
ADVANTAGE
DIGITAL UPGRADES  
*
*2016 average net promoter score 2
Who are we?
Good Energy’s purpose 3
Strategic Report Directors’ Report Financial Statements
Good Energy’s ambition
Our objectives
Our focus 4
Good Energy - 2016 financial highlights
We have 
strengthened our 
financial position 
and improved 
cash gener ation 5
Strategic Report Directors’ Report Financial Statements
Customer meter growth
Generation & Development
Our customer meter numbers have continued to grow as we 
focused on investing in new systems to support future growth, 
whilst maintaining gross margin levels and realising value from our 
gener ation portfolio 6
Chairman’s Statement  7 – 8 
Strategic Review  9 – 12 
Corporate Responsibility  13 – 14 
Chief Executive’s Review  16 – 18 
Chief Financial Officer’s Review  19 – 20 
Approval of Strategic Report  21
6–21
Strategic 
Report 7
Strategic Report Directors’ Report Financial Statements
Chairman’s Statement
In 2016, Good Energy delivered a robust financial 
performance in line with market expectations 
and increased customer meter numbers and 
engagement, while continuing to invest in the 
Company to achieve its purpose to tackle climate 
change in the UK.
Revenue rose 41% to £90.4 million on 13%  
customer meter growth; operating profit grew 41% 
to £6.0 million and profit before tax increased from 
£0.1m to £1.4m, delivering basic earnings per share  
of 9.1 pence.
Climate change remains a priority for the developed 
and developing world, with 129 countries ratifying 
the 2015 Paris Climate agreement including the UK, 
USA, China and India. The UK has now taken the  
next steps and approved the fifth carbon budget. 
In the UK, there continues to be a high level of  
public support for renewables, and in 2016 wind 
generated more electricity than coal. There is 
continued Government support for innovation in 
the UK energy market, and the recent alignment of 
energy and business strategy in the Business Energy 
and Industrial Strategy Department (BEIS) means 
there should be a more joined up approach from 
policy makers.
As the UK energy market evolves, Good Energy 
continues to invest in the Company. The focus for 
2016 has been to improve our digital capabilities. 
This year, we updated our customer website and 
delivered the first stage of our new customer 
information and billing system (Customer System), 
with additional Customer System rollouts planned 
throughout 2017. This combination will allow Good 
Energy to reduce cost, deliver an improved customer 
experience, test new marketing channels for 
investment in growth and support the Company’s 
roll out of the Smart Metering program.
In the final quarter of 2016, the UK energy market 
experienced a period of heightened volatility, driven 
We are focussed on growing 
profitably, understanding 
our customers’ needs and 
delivering 100% renewable 
and carbon neutr al solutions 
to more UK customers
Our Strategic Report for 2016 contains contributions from Good Energy’s 
Chairman, its Chief Executive and its Chief Financial Officer, in addition to a 
strategic review. Detailed financial information and data can be found in later 
sections of the document.
by a number of internal and external market factors, 
which in part led to the collapse of GB Energy. While 
Good Energy is not immune from these conditions, 
our vertically integrated business model, together 
with a prudent hedging policy, helped to mitigate 
the impact of these factors, enabling the Company 
to deliver a profit before tax of £1.4m, in line with 
market expectations. 
Good Energy was set up to help people tackle 
climate change through their choice of energy 
supplier, and we remain a purpose and customer 
led organisation. We demonstrate this through 
our continued commitment to 100% certified 
renewable electricity and our launch, in 2016, of a 
carbon neutral gas offering; our customer advocacy 
or average net promoter score (NPS) of 45; and 
our oversubscribed retail share offering where we 
welcomed over 1,800 shareholders from our £3.1m 
share raise in June 2016.
In 2015, Good Energy outlined growth targets that 
would be built off a combination of improving 
efficiency and developing customer focussed 
propositions and innovation. In 2016, the Company 
continued to make strides to prepare itself for further 
growth through continued investment in systems, 
and generation portfolio, the launch of Selectricity 
and our successful share raise, as highlighted in the 
2016 Progress Report.
Strategic Report  6 – 21 Chairman’s Statement 8
John Maltby
Chairman
27 March 2017
Good Energy recognises that its growth target is 
ambitious. While other market participants have 
delivered high growth rates through low pricing, this 
comes with risks. Good Energy’s focus is on growing 
profitably through efficiency, new propositions and 
innovation, all underpinned by an understanding of 
our customers’ needs. Through profitable growth 
Good Energy will deliver 100% renewable and 
carbon neutral solutions to more UK customers, 
further reducing the UK carbon footprint in line with 
the Company’s purpose.
Therefore, the Board has concluded that it is 
more appropriate to express its ambition in terms 
of delivering sustainable profitable growth and 
enhanced customer service, as this is more aligned 
to our focus on delivering increased shareholder 
value. As a result, Good Energy will look to streamline 
its operating model to drive further improvements in 
costs to serve, above and beyond that which comes 
from economies of scale from additional revenue 
growth, which has meant some changes in our senior 
leadership team and will mean that David Brooks, 
Managing Director - Supply, will leave Good Energy 
on April 7th. We would like to thank David for the 
significant contribution he has made since joining 
Good Energy and wish him all the best.
In line with this focus, Good Energy continues 
to invest in the leadership and capability of our 
management team and Corporate Governance. 
Ensuring the team has the right skills and capability 
to support our employees is important in order 
for us to achieve our ambitions, and the Company 
continues to shape and develop this as we grow  
and mature. 
Francesca Ecsery has informed the Board of 
her intention to step down as a Non-Executive 
Director over the coming year. As part of ongoing 
succession planning, the Nominations Committee 
has commissioned a search for a new Non-Executive 
Director and this is well-advanced. Francesca will 
remain a member of the Board until her successor 
is appointed. Francesca joined the Board in 2012, 
since then the Company has benefitted from her 
consumer expertise and strategic counsel. The 
Board would like to thank Francesca for her valuable 
contribution and wishes her well in the future.
In addition, Good Energy has made good progress in 
2016 on our Corporate Governance practices. This 
combination is key to the future success of Good 
Energy.
We have had an encouraging start to 2017, with the 
completion of the sale of Oaklands and trading in 
line with market expectations.
The UK Energy market remains an attractive sector, 
with exciting opportunities in the future, and 
Good Energy continues to deliver sound financial, 
operational and strategic performance. This would 
not have been possible without the commitment of 
all of Good Energy’s employees and the continued 
support from our customers and shareholders. On 
behalf of the Board, I would like to thank you all.
Dividend
We continue to review the balance of continued 
investment in the business and providing an 
appropriate return to shareholders, the board 
recommends a final dividend of 2.3 pence per share. 9
Strategic Report Directors’ Report Financial Statements
Strategy Review
In 2015, we set a five year growth ambition which 
was expressed in terms of achieving a target number 
of customers (household equivalents). The Board 
has now concluded that it is more appropriate 
to express its ambition in terms of delivering 
sustainable profitable growth and enhanced 
customer service, as this is more aligned to our focus 
on delivering increased shareholder value.
In 2015 and 2016, we have focussed on building 
the capability and systems required to support the 
delivery of sustainable profitable growth, through 
strengthening our capability in sales & marketing, 
and with the investment in systems, including the 
first stage roll out of our new Customer System 
in January 2017. One of the focuses for 2017 and 
beyond is to streamline the operating model of the 
business and to drive further improvements in costs 
to serve above and beyond that which comes from 
economies of scale from additional revenue growth.
Initiatives are underway to simplify the operating 
model and to align it to support the strategic focus 
of the business. These changes reflect the focus on 
continuing to grow the supply business, building on 
our strong customer franchise and a change in the 
focus for our generation business, where we will 
move away from looking at new developments and 
instead deliver security of renewable energy supply 
from partnering with other providers and introducing 
new sources of renewable energy into our mix.
As a consequence of these changes, we will deliver 
improved efficiencies, enhanced customer service, 
focussed risk management and create the capacity 
to invest in areas where we see opportunities for 
future growth.
Our ambition, and these initiatives, are supported 
by our strategic pillars of: driving down cost to 
serve, improving customer experience; building a 
platform for 2020 growth; creating compelling and 
differentiated propositions; and driving scale, brand 
awareness and profitability.
Over the period, the Company has continued to 
make progress towards delivering on our ambitions 
in each of the strategic pillars.
The UK energy market is competitive. In 2007 there 
were eight domestic suppliers, by the end of 2016 
this had risen to 50, an increase of over 500%. Good 
Energy has always sought to differentiate itself in the 
market not just by offering 100% certified renewable 
electricity, but through our focus on the customer 
and our people. We continue to see demand in the 
UK energy market for ethical companies that offer a 
value based proposition for sustainable energy.
Strategic pillar 2016 Progress
Drive down cost to serve, improve customer 
experience
Improved customer experience with investments in 
new Customer System, middleware and website
Build a platform for 2020 growth Sold the 5MW Wrotham Heath solar site for £0.5m 
profit and announced the sale of Oaklands solar 
site for £5.8m, reinvesting the proceeds into our 
development portfolio, appointed Head of Digital 
Marketing and Brand
Create compelling and differentiated propositions Launched Selectricity, published our first Progress 
Report on environmental performance, launched 
Green Gas
Drive scale, brand awareness and profitability Connected Newton Downs solar farm, REA 
customer service and company of the year awards, 
successfully completed an oversubscribed customer 
share offer
Strategy Review Strategic Report  6 – 21 10
Since 2014, the UK’s, cumulative installed renewable 
capacity has increased by 35% to over 33GW. While 
the trajectory of renewable generation growth may 
flatten in the short to medium term as a result of 
changes in Government policy, the UK renewable 
energy market continues to evolve due to the:
•  decreasing cost of renewable generation and 
battery storage;
•  electrification of heat and transport networks;
•  roll out of Smart Meters; and
•  sustainability ambitions of large corporates as 
demonstrated by the RE100.
These trends, combined with Good Energy’s 
customer focus, Feed-in-Tariff (FIT) customer base 
and competitive advantage, present opportunities. 
In order to take advantage of these opportunities, 
Good Energy will continue to focus on our strengths, 
efficiencies and customers relationships.
A key component of improving Good Energy’s 
efficiency and customer relationships will be 
expanding our digital footprint.
With the first phase of the Customer System in place, 
Good Energy is focussed on implementing the next 
phases through 2017. Once the Customer System is 
fully operational, Good Energy will be able to test 
different marketing channels, enhance our customer 
experience, offer innovative tariffs to the market and 
drive internal efficiencies. 
Good Energy’s brand, compelling proposition and 
history of innovation mean that the Company 
is well placed to provide personalisation to its 
different customer segments and develop tech 
savvy propositions for its customer base. Good 
Energy is trusted by its customer base, and new 
smart technology is an area in which over 25% of 
Good Energy customers surveyed have said they are 
interested.
Key Performance Indicators
Good Energy measures its progress with a number 
of key performance indicators (KPIs). We have 
highlighted nine KPIs across the four key areas of 
Customer, Operations, Financial and People, which 
enable us to report on and track our progress. In 
2016 we added the ratio of revenue per employee 
to the Operations KPIs, and operating margin to the 
Financial KPIs.
Customer
Customer KPIs monitor how the Company is 
delivering its growth strategy, as well as customer 
advocacy and focuses on growth, annualised 
average customer churn and average NPS. 
Customer KPIs 2016 2015
Net customer meter 
growth
13% 44%
Average  
annualised churn
<8.5% <8.0%
Average NPS 45 42
 
2016 net customer growth was lower than 2015, 
due to the Company taking the decision to slow its 
growth in the final quarter of 2016 as the first phase 
of the Customer System was implemented, and the 
impact of the Big Deal customers who joined Good 
Energy as part of the 2015 collective switch.
The collective switch in November 2015 was 
the first by Good Energy, adding approximately 
Source: Deutsche Bank; Cairn ERA
900
788
675
480
420
275
225
170
160
152
150
1,410
1,255
982
615
507
482
411
362
315
282
246
1,950
1,738
1,625
1,591
1,472
1,266
1,163
1,017
944
870
825
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Automotive system average
 
Lithium-ion battery costs are falling
US$/kWh
Stationary Energy system average
Energy cell average
Source: National Grid Future Energy Scenarios July 2016
EVs' peak demand
0
6
7
3
4
5
2
1
8
2010 2015 2020 2025 2030 2035 2040
Historic
Gone Green Slow Progression
No Progression
Consumer Power
GW 11
Strategic Report Directors’ Report Financial Statements
10,000 customers. It presented Good Energy with 
an opportunity to test and learn about collective 
switching as we look to grow in the future. As 
expected, the collective switch customers did see 
higher churn, as the business model of collective 
switching agents is to continually switch customers. 
Good Energy will be considering how to use 
collective switches in the future, depending on the 
final outcome.
The impact of the collective switch customers and 
lower growth meant that our average annualised 
customer churn rose slightly for the 2016 period, to 
below 8.5% from less than 8.0% in 2015. 
NPS measures how likely a customer is to 
recommend Good Energy, our products and services. 
It is a key indicator of customer advocacy, and Good 
Energy is extremely proud of the increase in its 
average NPS score from 42 to 45.
Operations
Operational KPIs focus on the efficiency of the 
Company. While internally we continue to monitor 
cost to serve and cost per acquisition, we also 
monitor administration cost (including depreciation 
and amortisation) growth and the ratio of 
revenue per employee, which enables us to review 
performance and assess operational efficiency. 
Operations KPIs 2016 2015
Administration  
cost (including 
depreciation and 
amortisation) 
growth
27% 14%
Revenue per 
employee
£284k £233k
Administration cost (including depreciation and 
amortisation) growth should be compared with 
gross and operating profit growth to understand how 
growth in the business is being supported.
Over the period, Good Energy has grown gross and 
operating profit 29% and 41% respectively, while 
administration costs have only grown 27%. The 2016 
administration cost growth is a mix of:
•  12% variable and semi-variable overheads;
•  6% costs associated with investment for growth, 
such as the Customer System; and
•  9% for other fixed overheads.
The increase in growth of operating profit, compared 
to gross profit, implies that Good Energy is leveraging 
our cost base.
The ratio of revenue per employee is compared to our 
average NPS to make sure that the balance between 
efficiency and customer advocacy is appropriate.
This is the first time we have outlined this figure and 
in 2016 this implied a ratio of £284k per employee, an 
improvement of £51k per employee on 2015, and is 
particularly pleasing given the increase in average NPS 
over the period.
Financial
Financial KPIs focus on the profitability of Good 
Energy, as the Company seeks to deliver profitable 
growth to our stakeholders.
Financial KPIs focus on revenue growth, gross and 
operating margins. 
Finance KPIs 2016 2015
Revenue growth 41% 12%
Gross margin 30% 33%
Operating margin 7% 7%
2016 has seen robust revenue growth, a decrease 
in gross margins and maintenance of our operating 
margin.
Revenue growth was driven by the full year impact of 
the 2015 collective switch customers, growth in FIT 
customers and business volumes.
Our 2016 gross margin decreased due to an increase 
in lower margin business customers, reduced wind 
output and volatile trading conditions in Q4 2016.
Our operating margin was maintained as the 
Company grew and invested for the future.
Strategy Review Strategic Report  6 – 21 12
People
People KPIs focus on Good Energy employee 
engagement. This is an important factor, as we look 
to attract the best people to support our customer 
service proposition and achieve our ambitions. 
People KPIs 2016 2015
Employee 
engagement
82% 78%
 
As a customer focussed organisation, it is critical 
that our employees are engaged and feel a 
connection to the Company’s values, purpose  
and strategy.
In 2015, Good Energy performed its first employee 
engagement survey. The survey included Gallup 12 
questions, which are used by the Times T op 100 
Companies, and gives the Company information 
to benchmark itself with other organisations 
across different industries and identify areas for 
improvement. We have used the feedback to help 
us improve in certain practical areas like working 
environment, systems and training, and we are 
pleased with the improvement between 2015  
and 2016.
We continue to strengthen 
our oper ational platform 
through investing in Smart, 
digital capabilities and new 
customer propositions 13
Strategic Report Directors’ Report Financial Statements
Corporate Responsibility
Good Energy is committed to doing the right 
thing. This means that we seek to make a positive 
difference to the environment, communities, 
customers, investors and our people, and this 
commitment extends to all parts of the business. 
In practice, it’s about living up to our own ethical 
standards in everything we do, for example by:
• treating customers fairly;
• investing in local communities;
• managing the environmental impacts of our own 
operations and supply chain;
• looking after the wellbeing and development of 
employees.
We do this because it’s the right thing to do, but also 
because it helps protect our reputation, is core to our 
purpose and sets us apart from other suppliers in an 
increasingly competitive ‘green energy’ market.
Customers
Our customers are the key to our business, its growth 
and success, so we put them at the heart of every 
decision we make and action we take. We listen to 
our customers to ensure that we fully understand 
their needs, and act on the information provided to 
ensure that we always do our best to meet the needs 
of both the customers and our business. 
Communities
• Supporting education and employment: We are 
working with Wiltshire College and local schools 
to support education and employment in the local 
area. We hosted a group of business students from 
the college to give them a taste of what working 
at Good Energy is like, and have introduced a 
new apprenticeship scheme which offers exciting 
opportunities to join our teams.
• Bath Rugby HITZ: Participants from Bath Rugby 
Foundation HITZ visited us to hear about our 
renewable purpose, before visiting a solar farm. 
The HITZ programme works with young people 
near Bath who are not in education, employment 
or training, helping to build their confidence and 
get them back on track.
• Investing in communities: Wherever we work, 
we strive to have a positive impact on local 
communities and the environment. Around 
Woolbridge solar farm in Dorset, we ensured a full 
biodiversity programme was in place, including 
2,000 new trees, 7,000 hedgerow plants, bird 
and bat boxes, a wildlife hibernaculum and a new 
grassland and wildflower meadow. We also fitted 
solar PV systems at three local primary schools. 
We provide community benefit funds through a 
‘£ per megawatt’ formula at all of our wind and 
solar farms, which support local charitable and 
community projects for the lifetime of the solar 
or wind farm. For each fund, a committee of 
local people review the funding applications and 
recommend how the grants should be allocated. 
The Hampole wind farm in South Yorkshire will 
generate investment in the local community worth 
more than £200,000 over its lifetime.
Hampole wind farm
Grants from the community benefit fund have 
supported projects such as an upgraded heating 
system for one local village church, fixing broken 
bells in another and planting new community 
flowerbeds.
Corporate Responsibility Strategic Report  6 – 21 14
Suppliers
As an ethical business, we select and perform due 
diligence on potential suppliers to ensure that 
their business practices promote and support our 
purpose: consideration is given to price, quality, 
timeliness of delivery and the ethical credentials of 
each potential supplier.
Good Energy is committed to reducing resource 
consumption across the business. We avoid the use 
of printed material where possible by encouraging 
digital forms of communication, purchasing paper 
that is certified by the Forest Stewardship Council 
as being made from wood pulp sourced from 
sustainably managed forests and is totally chlorine-
free or processed chlorine-free and, where possible, 
our print suppliers use vegetable-based printing inks 
and avoid use of Volatile Organic Compounds, for 
print press cleaning and other harmful chemicals.
Our people
Health and wellbeing: From lunchtime sports clubs, 
to providing fresh fruit each week, we do what we 
can to keep our employees healthy and happy. Good 
Energy offers subsidised gym memberships, as well 
as lunchtime football, badminton and squash.
Active travel: Our Active Travel Champions have 
been trained by Sustrans, the sustainable travel 
charity, to promote cycling and walking. They 
organise lunchtime bike rides, safety training, run our 
folding bike scheme and encourage staff to make the 
most of pedal power. Good Energy operates the Bike 
to Work scheme which helps employees spread the 
cost of a new bike.
Training and development: As part of the 
induction process, every new starter visits one of 
our solar farms, learns about our unique trading 
process and takes part in a values workshop, which 
provides a solid foundation and understanding 
of who we are and what we do. During 2016, 
we introduced a learning library and series of 
“lunch’n’learns” covering a broad range of topics. 
We also launched our Leadership Development 
Plan, to allow all leaders to continue to develop 
their skills. We are often able to fill roles internally, 
and many of our employees began in entry level 
roles and have progressed to management or 
leadership positions within the Company. Our 
“Pathways to Progress” career development tool 
enables employees to follow a clear and structured 
career journey within the Company.
Gender equality: We are committed to attracting 
women to work across the energy sector, and are 
proud that our Board and the Executive team have 
an equal split of men and women, with the female 
to male ratio across the Group being even higher at 
52:48. We are working to ensure that we provide all 
employees with equal opportunities to achieve their 
full potential. 15
Strategic Report Directors’ Report Financial Statements 16
Chief Executive’s Review
In 2016, Good Energy delivered growth of 41% in 
revenue, 29% in gross profit and 41% in operating 
profit, while managing the challenges of an 
increasingly competitive UK energy market and 
volatile wholesale energy market.
By being a customer focussed organisation, Good 
Energy has created a business model that is 
delivering financial returns for our shareholders, 
allowing us to invest in our people and systems, and 
deliver on our purpose.
Good Energy’s key competitive advantages can be 
split into five areas:
• Our story and brand - since 1999 we have  
been offering customers the opportunity to 
combat climate change through their choice  
of energy supplier; 
• Our green credentials – we offer 100% certified 
renewable energy and carbon neutral gas;
• Our customer focus – affordable energy  
delivered with excellent customer service; 
• Our people and values – through our employee 
engagement score; and 
• Our track record in innovation – since our  
inception we have successfully launched 
HomeGen, Renewable Heat Incentive  
Scheme and Selectricity.
These provide the basis for the future growth 
of Good Energy, with the principal risks and 
uncertainties faced by the business set out on pages 
27 and 28 of the Directors’ Report.
Supply
In 2016, total customer meter numbers grew 13% to 
248,605 (2015: 219,479), with electricity customer 
meters growing 5% to 71,486 (2015: 68,024), gas 
customer meters growing 14% to 44,107 (2015: 
38,838) and FIT customer meters up 18% to 133,012 
(2015: 112,617).
While total customer meter growth in 2016 was 
lower than 2015, Good Energy delivered significant 
growth in business supply volumes of over 95% and 
added over 20,000 new FIT customers in 2016.
During the year, the UK experienced heightened 
volatility in the short term UK power trading market 
due to several market factors, including unplanned 
maintenance work with French nuclear plants 
combined with lower than normal renewables 
generation and some irregular generation activities. 
As an electricity trader, Good Energy was operating 
in this challenging market. However, the Company’s 
risk management and hedging policy mitigated the 
impact on the Company.
T o support our growth, Good Energy has continued 
to invest in systems with over £1.7m invested in our 
Customer System and the relaunch of our customer 
website to improve our customers’ experience, and 
in people with the appointment of Hannah Darby as 
the Head of Digital, Marketing and Brand. 
Further phases of the Customer System will be 
implemented through 2017 and, once complete, 
Good Energy will have a system that is capable of 
driving scalable growth and internal efficiencies. 
The system will also allow Good Energy to test new 
marketing channels and assist us to meet our Smart 
obligations, as well as offering a platform for future 
customer propositions.
Good Energy’s growth targets are ambitious. While 
UK energy market participants have traditionally 
used price as the primary driver for growth, the 
consequence of this has caused some companies to 
exit with volatile market conditions.
In order to achieve our ambitions and deliver on our 
purpose, Good Energy needs to protect and grow its 
core business, build momentum in new business, 
and generate future business opportunities. 
All of this is underpinned by developing deeper 
relationships with our customers.  17
Strategic Report Directors’ Report Financial Statements
Good Energy recognises that growth will be in  
an evolving UK energy market, but this is nothing 
new for us. Good Energy is well placed to protect  
and grow our core business with our vertically 
integrated business model, customer focus, brand, 
green credentials, trading capability and track record 
of innovation.
The Company has identified the following three 
areas to build momentum in new business and 
generate future business opportunities. These are:
• battery storage - developing and delivering 
propositions for our business customers and 
renewable generators;
• electric vehicle network development - to enable 
customers to be able to experience the full 
benefits of electric vehicles (EVs); and
• green business consultancy - traditionally not a 
target audience for Good Energy to supply, due 
to their large size or operating domain, but with 
our commitment to reducing carbon with our 
expertise in trading and generation, we are well 
placed to support businesses looking to meet their 
sustainability goals.
These areas play to Good Energy’s competitive 
advantages and will support the Company’s growth 
ambitions, as well as lowering the UK’s carbon 
footprint, which is our purpose.
Alongside Good Energy’s robust 2016 financial 
performance, the Company has also increased its 
average NPS and employee engagement KPIs. As 
a customer focussed organisation, these KPI’s are 
important. They provide feedback on customer 
advocacy and how Good Energy employees are 
engaged with our purpose and values, and it is 
heartening to see the increase in these measures 
over the year.
Generation and development
In 2016, Good Energy continued to develop, manage 
and review its wind and solar generation sites to 
both secure access to long term power and realise 
value where appropriate, enabling us to reinvest in 
our portfolio.
Export from Good Energy’s owned sites increased 
5% to 80.7GWh in 2016, from a portfolio of 52MW 
made up of solar (35MW) and wind (17MW) assets. 
While wind output was down approximately 16% 
compared to 2015 due to lower wind resource, solar 
output increased 54% due to full year production 
from sites connected during 2015.
Good Energy continued to develop and actively 
manage our generation sites to both secure access 
to long term power, and realise value where 
appropriate, to enhance returns. During 2016, we 
have been constructing two 5MW solar sites, with 
Newton Downs connected at the end of the year, and 
Brynwhilach expecting to be connected before the 
end of March 2017.
Good Energy successfully sold Wrotham Heath 
pre construction to Trina Solar Group for a profit 
of £0.5m in 2016, and agreed the sale of our 5MW 
Oaklands solar site to Eneco UK Limited for £5.8m in 
December 2016, with the transaction completing in 
January 2017.
Oaklands was the first sale of a site fully constructed 
and developed by Good Energy and clearly 
showcased the capabilities of our generation team. 
Good Energy will continue to provide management 
services to Oaklands, and we retain an option to 
purchase up to 50% of the site’s power.
Over the short to medium term, Good Energy will 
continue to develop its wind assets in Cornwall and 
Scotland, as well as to look to realise value from its 
existing solar development portfolio. 
Good Energy was pleased with the conclusions of 
the Rt Hon Charles Hendry‘s independent review 
into the feasibility and practicality of tidal lagoon 
energy in the UK. The report concluded that tidal 
lagoons have a vital role to play in powering UK 
homes and businesses. Good Energy’s investment in 
Swansea Bay Tidal Lagoon plc allows us to purchase 
up to 10% of the output from the scheme, and we 
look forward to the Government incorporating tidal 
lagoons into their industrial and renewable strategies 
in response to the 5th Carbon Budget.
Chief Executive’s Review
Our focus is on protecting 
and growing our core 
business and on delivering 
new propositions for electric 
vehicles, stor age and 
business consultancy
Strategic Report  6 – 21 18
Research partnerships and innovation 
development 
Good Energy has a history of innovation.
In 2016, we continued this tradition with the launch 
of Selectricty, the UK’s first peer to peer platform for 
buying and selling renewable electricity, enabling 
commercial customers and renewable generators 
to trade electricity online themselves. Selectricity 
commercialised following the successful trial in  
late 2015 and early 2016 between Open Utility and 
Good Energy.
In 2016, Good Energy signed a Memorandum of 
Understanding with the UK clean fuel company, ITM 
Power, and is supplying 100% certified renewable 
electricity to one of ITM’s refuelling stations. We are 
also working with the Smart Fintry Project to deliver 
affordable sustainable energy to Fintry residents by 
enabling the purchase of power directly from nearby 
renewable energy generators.
As the UK energy market evolves, Good Energy will 
continue to develop innovative partnerships and 
projects to broaden our offering to customers.
Sustainable development goals
Good Energy is committed to serving all of its 
stakeholders, fulfilling our responsibilities to 
society and delivering sustainable returns to our 
shareholders, while also ensuring that the Company 
is a social and environmental force for good. 
Like other progressive, values-driven businesses, 
Good Energy has undertaken some early work 
to consider the relevance of the United Nations 
Sustainable Development Goals (SDGs). For 
example, the Company has started to use the SDGs 
to inform the evolution of the Good Energy brand 
and to guide formal decision-making in the business.
Where Good Energy is considering doing something 
new or differently, we believe the SDGs can be 
a helpful reference point. Good Energy has also 
started to test the SDGs as a framework for 
external reporting as part of our most recent annual 
submission to the Social Stock Exchange.
Outlook
2016 was focussed on investment in systems to 
support the continued growth of the business, 
maximising the value of the generation assets  
and continuing to build capability in key areas of  
the Company.
The end of 2016 and the beginning of 2017 have seen 
price rises from a number of UK energy companies as 
a result of upward pressure on wholesale, regulatory 
and transportation costs.  
In 2017 we will look to simplify our operating model, 
deliver further efficiencies in cost to serve, grow the 
supply business and reduce activity in our generation 
business. This will be done by continuing our digital 
journey with the full rollout of the Customer System, 
streamlining processes enabling us to invest in 
Smart and the areas where we see potential for 
growth in an evolving marketplace.
Juliet Davenport
Chief Executive
27 March 2017 19
Strategic Report Directors’ Report Financial Statements
The Supply business generated a positive cash flow 
in 2016.
The Generation business delivered a loss before tax 
of £2.2m, compared to a loss before tax of £0.6m 
in 2015. This reflects lower wind output in 2016 
than in 2015 and the removal of the benefit of levy 
exemption certificates (LECs) from 1st August 2015, 
which had a full year cost impact of £0.4m. Overall, 
Generation revenue grew by 5%.
The Development business reported a loss before 
tax of £0.6m, an improvement of £1.5m on 2015. The 
results for 2016 included a profit from the sale of 
Wrotham Heath of £0.5m and write offs of £0.2m. 
The 2015 results included profit before tax of £0.1m 
in relation to site sales, and a write-off of £0.6m for 
sites no longer to be developed.
As a result of the strategic review undertaken during 
2015, the Development team has been reduced in 
size going forward to reflect the change in focus, 
with a reduction in investment in solar development 
anticipated in the future.
Financial position and financing
In 2016, we began the construction of two further 
solar sites with one connecting in December 2016 
and the other expected to be completed ahead of 
the 31 March 2017 subsidy deadline.  The sale of the 
5MW Oaklands solar farm to Eneco UK Limited, with 
the option to purchase 50% of the power, reflects 
our strategic focus to optimise value from our 
renewable asset portfolio.
In March 2016 we agreed an increase in our overdraft 
facility with Lloyds Bank from £5.0m to £7.5m. This 
had £0.7m drawn against it as at 31 December 2016, 
but gives us flexibility to support the growth and 
seasonality of the cash flows of the business.
A new loan facility was also agreed with RBS to 
finance the investment in the new billing system.  No 
further drawdowns have been made against the long 
term fixed rate funding facility.
Good Energy’s 4-year bond, issued in November 
2013, is due to mature in November 2017.  The 
Company has the option to redeem this bond, 
replace it with another bond or roll on the bond 
for another 12 months, subject to any redemption 
Chief Financial Officer’s Review
Financial performance overview
Good Energy has continued to deliver customer 
meter growth, albeit at a slower level than in 
previous years, as we focused on investing in new 
systems to support future growth, maintaining  
gross margins and realising value from its  
generation portfolio.  
It delivered a profit before tax of £1.4m, up £1.3m  
on 2015 which was in line with market expectations. 
Revenue grew by 41%, reflecting the addition of 
Big Deal customers in the second half of 2015 and 
continued growth in generation revenue. Underlying 
customer growth was steady at 13%, and gross 
margin remained strong at 30%. T otal assets grew 
by 10% reflecting the continued growth of the supply 
business. The Company had cash balances of £6.3m 
at the year end and borrowings were in line with 2015 
levels at £61m.
T otal administration costs (including depreciation 
and amortisation) grew 27%, with growth in variable 
and semi variable costs of 12%, investments for 
growth of 6% and an increase in fixed overheads  
of 9%. 
Profit before tax of £1.4m was up £1.3m on 2015,  
with strong growth in profitability of 35% in the 
Supply Business.
Financial performance by segment
The Supply business delivered a profit before tax of 
£5.0m in 2016, up by £1.3m from 2015. Revenue grew 
by 41%, with gross margin down 1% to 28%. Overall 
customer meter numbers grew by 13%, with the 
underlying customer base (excluding the Big Deal) 
growing at 16%, reflecting continued strong growth 
in business customer volumes and an increase in the 
market share of our Feed in Tariff customer meters. 
Retention remained strong, as average annualised 
churn for domestic customers was below 8.5%.
In the period from the end of October to the end 
of November, we saw an exceptional level of 
volatility in power prices, reflecting lower supply as a 
consequence of the French nuclear generators being 
taken out of action, and lower wind generation than 
in previous years. Although we operate a prudent 
hedging policy, these exceptional trading conditions 
impacted the performance of the Supply business 
in this period and, together with the strong growth 
in lower margin business sales, contributed to the 
reduction in gross margin.  
Chief Financial Officer’s Review Strategic Report  6 – 21 20
notices that may be received from bondholders, and 
is currently reviewing the most appropriate option. 
As a consequence of the existing bond’s terms 
ending within the next twelve months, the facilities’ 
outstanding balance of £15.1m has been reclassified 
as a current liability and the balance sheet, as a 
result, shows a net current liability position of £3.4m 
as at 31 December 2016, compared to a net current 
asset position of £5.8m in 2015. The balance sheet is 
expected to return to a net current asset position for 
the year ended 31 December 2017.
In June 2016, we launched a share offer which raised 
£3.1m gross, and was oversubscribed.  This reflects 
our continued commitment to encourage customer 
ownership of the business.  Following the share raise, 
the yearend gearing ratio for the business is 71% 
compared to 76% in 2015.
Good Energy continually reviews the funding 
requirements for the business to ensure that it can 
meet its strategic growth objectives with appropriate 
funding products, taking into account the cost of 
capital, duration and overall gearing levels.
In 2016, the Company implemented the first phase  
of our Customer System, and commenced 
investment in improving our digital capability. Good 
Energy’s focus in 2017 is to complete the rollout 
and full implementation of the Customer System 
to provide a strong platform for customer growth, 
improve customer experience and investigate 
new revenue channels, as the UK energy market 
continues to evolve.
Good Energy has seen significant growth in  
customer meter numbers and financial scale over 
the last five years, and has maintained its gross 
margin and customer satisfaction throughout this 
period. There are opportunities to deliver further 
efficiencies in both our costs to serve, and our 
overhead costs, by simplifying our processes and 
structures, and this will be a strong focus for 2017. 
This will provide us with a more efficient core 
operating business, and create capacity for us to 
invest in our Smart program and in opportunities for 
growth in future revenue channels to support our 
changing customer demands.
Dividends
The Board’s dividend policy is to ensure that there 
is an underlying dividend cover of at least three 
times in the Supply business and that any dividend 
payment, and the amount thereof, is balanced 
against the need to continually invest in the business 
for its long term growth.
The Board is pleased to recommend a final dividend 
of 2.3p per Ordinary Share.
Denise Cockrem
Chief Financial Officer
27 March 2017
Key financial 
highlights
2016 2015 Movement
Revenue £90.4m £64.3m +£26.1m
Gross profit £27.5m £21.3m
+£6.2m
Operating 
profit
£6.0m £4.2m +£1.8m
Profit before 
tax and 
exceptional 
items
£1.4m £0.1m +£1.3m
Net debt £52.2m £54.0m -£1.8m
Basic earnings 
per share
9.1p -1.4p +10.5p 21
Strategic Report Directors’ Report Financial Statements
These areas form the required elements of the 
Strategic Report presented on pages 6 to 21, and 
have been approved by the Board of Directors and 
signed on its behalf by:
Approval of Strategic Report
A report of the Group’s performance during the year, 
and future developments, is given in the Chairman’s 
Statement on pages 7 and 8, Chief Executive’s 
Review on pages 16 to 18 and Chief Financial 
Officers’ Review on pages 19 to 20.
The Directors use a number of key performance 
indicators to manage the business, which are 
disclosed in the Strategy Review on pages 9 to 12.
Juliet Davenport
Chief Executive
27 March 2017
Strategic Report Strategic Report  6 – 21 22
John Maltby – Non-Executive Chairman (Independent)
John holds a number of roles in UK and international 
companies including Chairman of the Swedish 
bank BlueStep Bank, Non-Executive Director of 
Bank of Ireland UK, and Non-Executive Director 
and Chairman of Risk & Audit for Tandem Bank 
plc. Previous roles include CEO of Williams & Glyn, 
Senior Advisor to Corsair Capital, Group Director of 
Commercial Banking at Lloyds Banking Group,  
Group Chief Executive of Kensington Group plc and 
several senior positions in the financial services 
sector, including NatWest Group, Barclays Bank  
and Abbey National. 
Skills and Expertise: Has a wealth of experience 
with small businesses and publicly listed companies 
and a reputation for delivering growth, which is 
invaluable to the Company as it continues its 
development.
Introducing the Good Energy Group PLC Board
Juliet Davenport – Chief Executive Officer
Juliet started her career in renewable energy at 
Energy for Sustainable Development Ltd (ESD) in 
1995 and was appointed Executive Director of both 
ESD (now CAMCO) and ESD Ventures Ltd in 1996. 
Passionate about renewable energy and its potential 
to impact on climate change, in 2013 she was 
awarded the OBE for services to the sector. Juliet is 
highly regarded in the renewable energy industry and 
has held positions on many strategic and advisory 
boards, including DECC’s Renewable Advisory Board, 
OFGEM’s Environmental Advisory Committee, 
Ministerial Smart Metering, and Regen SW. She is 
also a council member of NERC.
Skills and Expertise: Worked for a year at the 
European Commission on European energy policy, 
then at the European Parliament on carbon taxation 
and holds a masters in environmental economics.
Joined Board:   
October 2012
Responsibilities: 
Member of Audit &  
Risk Committee  
Member of Nominations & 
Remuneration Committee
Appointed CEO:  
2002
Denise Cockrem – Chief Financial Officer
Denise has held senior finance roles in FTSE 100 
companies in the financial services sector including 
Finance Director for RSA Insurance Group’s UK & 
Western Europe region. She worked as Finance 
Director for Direct Line Insurance, and her career 
includes finance roles with Royal Bank of Scotland, 
Barclays Bank and Ernst & Young. Denise is also 
a Trustee on the Board of Macintyre, a charity 
providing learning, support and care for more than 
900 children and adults with learning disabilities. 
She is a member of the CBI South West Council and 
a Non-Executive Director of Skipton Building Society.
Skills and Expertise: A Chartered Accountant with an 
MA in Law from Oxford, and broad experience in the 
financial services sector over the last 20 years.
Appointed CFO:   
May 2014
  
David Brooks – Managing Director
David joined the Company in September 2015 
and is Managing Director of Good Energy’s  supply 
business.  He was previously at AXA, as Managing 
Director for the self-investor business and 
Distribution Director for AXA Sunlife. 
Skills and Expertise: Has extensive experience of 
transforming business performance through his 
leadership of both commercial strategy and his 
development of people and organisations.
Joined Board:  
September 2016
   23
Strategic Report Directors’ Report Financial Statements
Francesca Ecsery – Non-Executive Director (Independent)
Francesca is an experienced Non-Executive Director 
with 23+ years’ experience in directing both blue chip 
companies and start-ups in the digital, retail, FMCG, 
leisure and travel industries.  She is an investor in a 
number of start-ups, acts as advisor in the leisure, 
travel, retail and digital marketing sectors and 
is a commercial coach to several entrepreneurs. 
Francesca is also the founder and Director of 
Advantage Portugal. Previously, Francesca worked 
as Global Business Development Director and UK 
General Manager at Cheapflights Media. Francesca 
is a Director of Marshall Motor Holdings, Advantage 
Portugal LLP, Foreign & Colonial Investment Trust 
plc, Share plc, The Share Centre Limited, Sharefunds 
Limited and VISTA (Logistik Holdings Ltd).
Skills and Expertise: Has extensive experience 
encompassing consultancy with McKinsey & Co, 
marketing with PepsiCo, and general management in 
a range of blue-chip travel companies.
Joined Board:  
November 2012
Responsibilities:  
Member of Audit &  
Risk Committee  
Member of Nominations & 
Remuneration Committee
Martin Edwards – Non-Executive Director
Martin was appointed as a Director of Good Energy 
Group at its formation. He was instrumental in taking 
Delabole wind farm – the UK’s first commercial 
wind farm – from concept to completion in the 
1990s. Delabole wind farm was acquired by Good 
Energy Group in 2002 and Martin continued to direct 
all local operations, maintenance and contract 
negotiations associated with it. He also played a key 
role in implementing the £12 million redevelopment 
of the site during 2010/11. Martin is also a Director of 
Windelectric Ltd and Windelectric Management Ltd.
Skills and Expertise: Has commercial awareness and 
valuable knowledge of the  renewable generation 
business and key aspects of getting developments 
completed.
Joined Board:  
June 2000
Responsibilities: 
Member of Noninations & 
Remuneration Committee
Rick Squires – Non-Executive Director (Independent)
Rick holds a number of Non-Executive board 
directorships of companies with investments in the 
renewable energy sector, including Green Investment 
Bank Financial Services, Milford Haven Port 
Authority and Green Energy For Education Limited. 
Until 2009, Rick was the Non-Executive Chairman of 
Eclipse Energy Company Ltd, a UK-based privately 
owned wind power company with a development 
portfolio of approximately 250MW. Rick is also 
the founder of PiEnergy Ltd providing consultancy 
and management education services to the energy 
sector.  He has held senior commercial positions with 
Royal Dutch Shell Group and InterGen, a US-based 
power developer and producer.  
Skills and Expertise: Has extensive Non-Executive 
Director experience, and an overview of the 
international energy sector with specific focus on 
the development, construction and operation of 
renewable energy assets.
Joined Board:  
March 2008
Responsibilities: 
Chairman of Audit & Risk 
Committee 
Emma Tinker – Non-Executive Director (Independent) 
 
Emma is a private equity investment Director who 
brings a wealth of investment experience. She is a 
Director of numerous renewable energy companies, 
established the renewable energy business at HG 
Capital in 2002 and founded Asper Investment 
Management in 2016 as the spin-out of that 
business. She has been a Director for renewable 
developers and independent power producers, 
working across a range of renewable technologies. 
Emma is also a Director of Gardeners’ Royalty 
Benevolent Society.
Skills and Expertise: Has substantial commercial 
experience spanning the entire lifecycle of 
investments in energy businesses, and has worked 
across a range of renewable technologies.
Joined Board:   
September 2016
Responsibilities: 
Chair of Nominations & 
Remuneration Committee 
   24
Our agreement with DONG 
Energy will help us meet  
ever-increasing demand for 
100% renewable electricity  
as our customer base 
continues to grow 25
Directors’  
Report
25–47
Directors’  Report  26 – 30 
Corporate Governance Report  31 – 39 
Directors’  Remuneration Report  40 – 47 26
The Company is required to set out a fair review 
of the Group’s activities and a description of the 
principal risks and uncertainties facing the business. 
This requirement includes an analysis of the 
development and performance of the Company’s 
business during the financial year, and the position 
of the Group at the end of the reporting period 
consistent with its size and complexity.
The Directors’ Report has been prepared and is 
published in accordance with, and with reliance 
upon, applicable English company law and the 
liabilities of the Directors in relation to that report are 
subject to the limitations and restrictions provided 
by such law.
General company information
Good Energy Group PLC is a public limited company 
incorporated in the United Kingdom under the 
Companies Act 1985. The Company is listed on the 
Alternative Investment Market (AIM) of the London 
Stock Exchange, is a founding member of the Social 
Stock Exchange (SSE) and its shares have been 
trading on the Social Impact segment of the NEX 
Growth Market since 5 January 2016.
The Company’s registered office and principal 
place of business is: Monkton Reach, Monkton Hill, 
Chippenham, Wiltshire, SN15 1EE and the registered 
number is 04000623.
Risk Management Approach
Good Energy recognises that effective risk 
management is critical to enable it to meet its 
strategic objectives.
The Company has a clear framework for identifying 
and managing risk, both at an operational and 
strategic level. Its risk identification and mitigation 
processes have been designed to be responsive to 
the changing environment in which it operates. The 
impact of emerging risks on the Company’s business 
model are also considered and used to make 
informed decisions, including as to the delivery and 
evolution of the Group’s strategy.
The Directors submit their report, together with the audited consolidated 
financial statements of the Good Energy Group of companies, for the year 
ended 31 December 2016.
The Board’s review of internal control
The Board retains overall responsibility for the 
Company’s risk management and internal  
controls framework. While the Board reviews 
the suitability of the internal controls annually, 
responsibility for reviewing the effectiveness of 
internal controls is delegated to the Audit and Risk 
Management Committee.
The Audit and Risk function is responsible for 
Good Energy’s risk management activities, and 
for provision of its internal audit service. As such, 
its activities include ensuring the regular review 
of internal controls relating to key risks, reporting 
on risk events to the Audit and Risk Management 
Committee, and reviewing and testing the 
effectiveness of internal controls through  
audit reviews.
In 2015, the Audit and Risk function led a Group-wide 
initiative to upgrade the control environment - the 
Group’s Code of Conduct, a ‘Guiding Principles’ 
approach that is appropriate for a fast-growing 
business. This helped to ensure that everyone who 
works at Good Energy adheres to a way of working 
together that reflects the Company’s ethos.
Registered office details
The Company’s registered office and principal place 
of business is:
Monkton Reach 
Monkton Hill 
Chippenham 
Wiltshire SN15 1EE
The Company’s registered number is 04000623.
Directors’ Report 27
Strategic Report Directors’ Report Financial Statements
Directors’ Report 25 – 47 Directors’ Report
The Guiding Principles provide a framework which 
empowers all Good Energy employees to make 
informed decisions that are in the best interests of 
the Company, its customers and other stakeholders, 
reflect the environment in which the Company 
operates, mitigates risk, and provides clarity on 
where advice can be sought. The Guiding  
Principles demonstrate the Group’s commitment  
to working with honesty, respect and transparency, 
and include policies relating to, amongst other 
things, customer service, data handling, health & 
safety, approvals & authorities, procurement, and 
corporate responsibility.
Principal risks and uncertainties
Political risk:  Under the Cameron government 
there was a systematic removal of renewable 
support and increasing support for nuclear, gas and 
fracking which put the Company at odds with the 
government agenda. Further withdrawals of support 
could lead to operating conditions that might require 
increased capital expenditure, increased operating 
costs or otherwise hinder the development of the 
renewable energy industry. 
Parliament has since approved the 5th carbon 
budget – this means we have a trajectory out to 
2030 for emissions (this will impact energy as well 
as other industries e.g. transport). 
The 2016 Autumn Statement was a low-key event, 
particularly from an energy point of view. Climate 
change and renewable energy were not mentioned 
at all.
Following the decision to exit the EU, the UK remains 
in a period of uncertainty which may continue for at 
least the next two years.  However, the Company is 
adaptable and well placed to meet any regulatory 
changes. “Brexit” may lead to higher energy prices for 
UK households and businesses, as a possible decline 
in the value of sterling and new trade tariffs could 
make imported energy relatively more expensive. 
However, this could have a positive impact on UK 
renewables, the costs of which would become 
increasingly competitive as the costs of imported 
energy rise. 
The election of Donald Trump in the US, and the 
appointments made to the new administration, 
raise questions about the future of international 
environmental agreements, including the 2015 
Paris Agreement. It is possible that other countries, 
including the UK, could react to the US’ new stance 
by lowering their own ambitions, although equally 
possible that they continue to honour  
previous commitments. 
Good Energy has developed strong relationships with 
stakeholders including Department for Business, 
Energy and Industrial Strategy (BEIS), HM Treasury 
(HMT), Department for Communities and Local 
Government, OFGEM (Office of Gas and Electricity 
Markets) and a range of other stakeholders including 
think-tanks, academics, opposition parties etc.
The Company has continued its efforts to influence 
policy makers through data driven research and 
proposals, responding to relevant consultations 
and working through trade associations. The 
Company has also sought to diversify its portfolio 
where possible, for example through its investment 
in Tidal Lagoon, Swansea Bay: a scheme which 
received independent backing from a government-
commissioned review in January 2017.    
Regulatory risk: There have been a significant 
number of changes to the regulations governing  
the energy industry and businesses generally  
(e.g. SMART, Nexus, CMA, EU General Data 
Protection Regulation etc.). These regulations 
require the Company to make various changes 
to its procedures within set timelines, and have 
already led and will continue to lead to the Company 
incurring additional time and cost in order to ensure 
compliance with these new regulations.  A significant 
volume of regulatory change is a risk to the Company 
as it can divert time and resource away from 
growth initiatives as well as the risk of not meeting 
regulatory deadlines.
Some targeted investment has been made to 
strengthen the regulatory and compliance function 
and has enabled the Company to respond effectively 
to the volume of change, thereby reducing the risk.
Wholesale market and price volatility: Margin from 
energy sales may be affected by fluctuations in price 
of wholesale gas and electricity and the associated 
costs with buying in any volatile marketplace. 
This impacts the price the Company can offer to 
customers and could result in a significant loss of 
customers if other energy suppliers were able to 
absorb more of thse costs before needing to alter 
customer prices. The fourth quarter of 2016 saw 
greater volatility in the market, of a nature that the 
Company could not fully mitigate through existing 
counterparty relationships.
This risk is mitigated partly through the benefits of 
its vertical integration, and partly via the Company’s 
forward-looking and prudent hedging policy.  28
The Company is also diversifying its portfolio of 
counterparty relationships.
Weather, forecasting demand and generation:  On 
the supply side, temperature drives demand and 
customer behaviour. From a generation perspective, 
the annual variability of wind speeds and solar 
radiation can result in year-to-year fluctuations. Any 
material reduction could have an adverse impact 
on financial results and, potentially, the future 
prospects for the business.
Accurate forecasting is key, in the long term, to 
informed hedging and thus mitigating against 
adverse market movements, and in the short term 
to avoiding imbalance risk. Investment in forecasting 
systems has provided Good Energy with improved 
visibility and improved forecasting performance.
Cyber-attack: As with many businesses, a 
successful cyber-attack on Good Energy’s network 
could result in the Company being unable to deliver 
service to its customers, potentially damaging its 
reputation, and leading to consequential customer 
and revenue loss. It could also lead to the imposition 
of financial penalties.
Good Energy continually assesses its security 
policies, standards and procedures and adjusts them 
so they are proportionate to the threat profile the 
Company faces. 
Data management: Good Energy receives, 
processes and stores confidential, personal and 
commercially sensitive information. Failure to 
protect or correctly use this data could result in 
unintentional loss of, or unauthorised access to, 
customer data which could lead to enforcement 
action being taken and/or the imposition of financial 
penalties, and could adversely affect the reputation 
of the Company and the trust of our customers, 
employees, shareholders, bondholders and  
other stakeholders. 
An organisation wide project is underway to 
implement the changes required to be compliant 
against the new EU General Data Protection 
Regulations which come into force on 25th May 
2018. In addition to personal data, Good Energy 
holds commercially sensitive information in terms  
of energy trading, financial statements and 
investment records. 
Good Energy takes the security of all personal data 
very seriously and manages the risk in a number of 
ways to ensure our customer and employee data is 
protected. There are a number of controls in place 
to minimise the risks, such as system access rights, 
mandatory training for all employees upon induction 
with periodic refresher training appropriate to the 
employee’s role. A schedule of assurance reviews and 
internal audit is planned on a yearly cycle to test our 
processes, security measures and general awareness 
of data protection. Our Guiding Principles set the 
requirements for all employees and contractors which 
include consequences for non-adherence. 
Financial risk management: This has been 
considered within note 3.1 in the Notes to the  
Financial Statements.
Capital structure
The Group is financed through both equity share 
capital and debt instruments.
As at 31 December 2016, the Company’s issued share 
capital was 16,484,703 Ordinary Shares of 5p each.  
Ordinary Shares in the Group carry rights to dividends 
and Ordinary shareholders are entitled to attend and 
vote at general meetings.
The Company’s share register is maintained and 
managed by Computershare Investor Services PLC for 
which contact details can be found in our Directors 
and Corporate Resources section on page 104.
The Company does not have shareholder authority 
to acquire its own shares. The Good Energy Group 
PLC EBT (adminstered by Clarke Willmott Trust 
Corporation Limited) holds 495,739 (2015: 521,989) 
Ordinary Shares of the Company in trust for current 
and future beneficiaries of the Good Energy Group 
Employee Share Option Scheme. These are deducted 
from equity as shown in the Consolidated and Parent 
Company Statements of Changes in Equity. 
During 2016, the trust disposed of 26,250 (2015: 
197,000) Ordinary Shares as a result of exercised 
options and the long service awards of shares made 
to employees. 29
Strategic Report Directors’ Report Financial Statements
Significant shareholders
Significant shareholders holding over 3% of the issued share capital as at 31 December 2016, other than any 
Directors and their family as defined in the AIM rules, are detailed below:
Directors’ interests and their interests in the Company’s shares
Details of the Company’s Directors who served during the year and up to the date of approval of this report 
(unless otherwise stated) are detailed on page 31. The interests (all of which are beneficial unless otherwise 
stated) of the Directors and their families as defined in the AIM Rules in the issued share capital of Good 
Energy Group plc are 
1 
:
Shareholder
No. shares held as at 31 
December 2016
%age of issued  
share capital
Ecotricity Group Limited 4,169,948                       25.30 
Schroder & Co 743,874 4.51
Good Energy Group PLC EBT 495,739 3.01
No. shares as at 31 
December 2016
%age of issued 
share capital
No. shares as at 31 
December 2015
%age of issued 
share capital
Martin Edwards 
2
669,827 4.06 686,827 4.47
Juliet Davenport 
3
569,086 3.45 592,810 3.96
John Maltby 
4
122,703 0.74 120,000 0.80
Richard Squires
 5
 39,759 0.24 36,000 0.24
Francesca Ecsery
 4, 6
3,328 0.02 2,400 0.02
Denise Cockrem
 4
2,703 0.02 - -
Emma Tinker
 4, 6
1,461 0.01 - -
Notes
1. Certain of the Directors hold share options for which details are set out in the Directors’ Remuneration Report (on pages 46 and 47).
2. In addition to Martin Edwards’ shareholding noted above, his father Peter Dixon Edwards holds 123,450 Ordinary Shares as trustee of a 
discretionary trust under which Martin is one of the potential beneficiaries. Martin previously held 17,000 Ordinary Shares on behalf of the 
Good Energy Group PLC EBT. These shares are now held by the Good Energy Group PLC EBT.
3. Juliet Davenport holds 524,810 Ordinary Shares in the Company in her own name. Her husband owns 43,000 Ordinary Shares. One daughter 
owns 638 Ordinary Shares, and Juliet holds a further 638 Ordinary Shares on behalf of another daughter.
4. John Maltby, Francesca Ecsery, Denise Cockrem and Emma Tinker purchased Ordinary Shares in the Company as a result of their participation 
in the share offer in June 2016. 
5. Richard Squires holds 37,046 Ordinary Shares in the Company. His shareholding increased during the year as a result of participation in the 
scrip dividend. His wife holds 2,713 Ordinary Shares as a result of her participation in the share offer in June 2016 and the scrip dividend. 
6. Francesca Ecsery and Emma Tinker’s shareholdings increased as a result of their participation in the scrip dividend scheme.
Directors’ Report Directors’ Report 25 – 47 30
Directors’ Indemnity Statement
As permitted by the Company’s Articles of 
Association, the Directors have the benefit of 
an indemnity which is a qualifying third party 
indemnity provision as defined by Section 234 of the 
Companies Act 2006. The indemnity was in force 
throughout the last financial year and is currently in 
force. The Company also purchased and maintained 
throughout the financial year Directors’ and Officers’ 
liability insurance in respect of itself and its Directors 
and Officers.
Financial instruments
The Group’s financial instruments include bank loans 
and other borrowings, a corporate bond, overdraft 
and revolving credit facilities. 
The principal objective of these instruments is  
to raise funds for general corporate purposes  
and to manage financial risk. Further details of  
these instruments are given in Note 23 in the 
Financial Statements.
Future developments
Details of future developments are given in the Chief 
Executive’s Review on pages 16 to 18. 
Research and development
Given the nature of the Group’s activities it does not 
carry out any material research and development 
work. However, the Company does invest in small-
scale R&D projects, often grant-funded, as it believes 
innovation is key to the future development of its 
business proposition.
Dividends
Details relating to the proposed 2016 final dividend 
are set out in the Chairman’s Statement on page 8. 
By order of the Board
Stephen Rosser
Company Secretary
27 March 2017 31
Strategic Report Directors’ Report Financial Statements
Corporate Governance Report
The Group recognises the importance of good 
corporate governance practices and seeks to embed 
good governance at the heart of the business. 
Although the Company is not required to comply 
with the UK Corporate Governance Code (the Code) 
since it is AIM listed, the Directors have decided to 
provide certain corporate governance disclosures 
that would be required of a fully listed company. 
The Group considers the Code as a benchmark for 
best practice and seeks, where it considers it to be 
appropriate, to comply with the Code. 
The Board has implemented a number of 
governance enhancements through the period, as 
more particularly described in this section.
The Board and its committees
Board changes 
The Board was pleased to announce the 
appointment during the year of Emma Tinker 
as Non-Executive Director. Emma’s skills were 
Notes
1. Independent Non-Executive Directors.
2. Will leave Board during 2017
Executive Directors Non-Executive Directors
Juliet Davenport Chief Executive John Maltby 
1
Non-executive Chairman 
of the Board; Member of 
Audit & Risk Committee; 
Member of Nominations & 
Remuneration Committee
Denise Cockrem Chief Financial Officer Richard Squires 
1
 
Chair of Audit & Risk 
Committee
David Brooks 
2
Managing Director, 
Supply
Martin Edwards 
Member of Nominations & 
Remuneration Committee
Francesca Ecsery 
1,2
Member of Audit & Risk 
Committee, Member 
of Nominations & 
Remuneration Committee
Emma Tinker ¹
Chair of Nominations & 
Remuneration Committee
specifically sought out following a review of the 
composition of the Board and the balance of 
skills and experience of the Directors during the 
2015 Board Evaluation process. Emma is a private 
equity investment director who brings a wealth of 
investment and commercial experience spanning the 
entire lifecycle of investments in energy businesses. 
The Board appointed a recruitment consultant to 
assist with the recruitment of Emma Tinker as an 
independent Non-Executive Director. 
David Brooks joined Good Energy in 2015 with 
extensive experience in transforming business 
performance. The Board welcomed David Brooks 
as Managing Director, Supply during the year. As 
described earlier in this report, streamlining Good 
Energy’s operating model will result in changes to 
the senior leadership team and will mean that David 
will leave Good Energy on April 7th. 
The Board comprises the following individuals:
Corporate Governance Report
Board of Directors
Directors’ Report 25 – 47 32
Independence of the Board
The Chairman was independent upon appointment 
to the Board in October 2012. All of the Board’s 
Non-Executive Directors are independent with the 
exception of Martin Edwards, who has served as 
a Director for more than nine years, having been 
appointed to the Board in June 2000. 
The Board considers Richard Squires, who holds 
75,000 share options in the Company, to be 
independent. The share options were issued to 
Richard in March 2012, before the Company listed 
on AIM. These options were disclosed as part of 
the AIM listing and have also been reported in the 
Annual Report & Accounts each year since they were 
issued. Since the Company listed on AIM, Richard 
has purchased shares in the Company himself. 
The share options were granted at market value as 
part of Richard’s appointment as interim Chairman 
and represented the most effective method of 
incentivising performance aligned to the interests of 
the Company and shareholders. 
Board
Audit and Risk  
Committee
Nominations and 
Remuneration  Committee
Executive Directors
Juliet Davenport 
3
8/8 - -
Denise Cockrem 
3
8/8 - -
David Brooks 
1, 3
3/3 - -
Non-Executive Directors
Francesca Ecsery 8/8 4/4 3/3
Martin Edwards 8/8 - 3/3
John Maltby 8/8 4/4 3/3
Richard Squires 
2
7/8 3/4 -
Emma Tinker 
1
3/3 - 2/2
Board and Committee meetings and attendance
Notes
1. Appointed 2 September 2016.
2. Richard Squires was unable to attend the Board and subsequent Audit Committee meeting due to family illness.
3. The Executive Directors are not members of either of the Committees, and attend by invitation only. As such, their attendance at Committee 
meetings is not noted in this table. 33
Strategic Report Directors’ Report Financial Statements
Operations of the Board
The roles of Chief Executive and Chairman have 
always been split, with the Chairman operating in 
a Non-Executive capacity. The Chief Executive is 
responsible for the day-to-day management and 
running of the business and is supported by an 
Executive team which during the year included a 
Chief Financial Officer, Managing Director - Supply, 
Director of Trading & Origination, Director of People  
& Culture, General Counsel & Company Secretary,  
IT and Transformation Director and Customer  
Service Director.   
Details of the number of scheduled Board meetings 
and attendance of Directors is set out in the table 
opposite. The Group’s performance is reviewed 
at these scheduled meetings and the Board is 
responsible for agreeing and reviewing the strategy 
for the Group, for which it maintains both short term 
(12 months) and longer-term (five years) plans. 
In addition, it is responsible for matters relating to 
employee recruitment and remuneration, strategy, 
health and safety and other specific subjects. 
Where relevant, members of the Executive team 
and other senior leaders within the business attend 
Board and Committee discussions. Members of the 
Board also engage with members of the Executive 
team and other senior leaders directly on relevant 
initiatives. During 2016, the Board hosted a number 
of evening events, particularly where Board and 
Committee meetings spanned consecutive days. 
Those attending any of the Board or Committee 
meetings on those days were invited to participate, 
and attendance was high.
In addition, the Board or relevant Committees held 
regular informal discussions on a variety of topics 
to consider impacts of macro-economic events 
and provide guidance and insight to support the 
Company in delivering its objectives. The Board 
conducts an off-site strategy discussion at least 
annually, at which all Board members and all of the 
Executive team are present.
Board packs are generally circulated one week ahead 
of scheduled Board and/or Committee meetings to 
give Directors adequate time to review information 
and prepare. The Chairman and Non-Executive 
Directors regularly convene briefing sessions in 
advance of scheduled Board and Committee 
meetings, and de-brief afterwards.
Directors have the right to request that any concerns 
they have are recorded in the appropriate Committee 
or Board minutes.
The Board reviews the operational and financial 
results of the Group for each month against a 
pre-agreed set of performance targets operating 
within the delegated authorities, which are reviewed 
annually by the Board, or as and when changes  
are required. 
In addition, the Board receives information 
obtained through a system of continuous financial 
planning which is used to better manage profit and 
cash flow forecasting, and to inform investment 
decision making. The formal financial plan for the 
forthcoming year is set out as a detailed proposition 
and authorised by the Board.
The Board has a formal list of Matters Reserved for 
the Board, which is reviewed and, if required, updated 
annually by the Board. During the year, approximately 
half of the matters on this list were considered by 
the Board. There is a formal Delegated Authorities 
policy incorporated within the Guiding Principles 
which includes a detailed authorisation matrix 
covering financial limits and approvals needed when 
conducting business on behalf of the Company, as 
well as those business decisions that need to be 
approved by the Board.
The Board has access to the services of the Company  
Secretary and external advisers as necessary.
Board Performance Evaluation
The Board is committed to continually improving  
its performance.
During 2015, the Board implemented an annual board 
performance evaluation.  Evaluations are carried out 
internally,  and the Board is reviewing the potential 
benefits of introducing periodic externally facilitated 
reviews. For internal reviews, Board members and 
other regular Board attendees respond to a detailed 
questionnaire. Board members are also interviewed. 
In 2015, the Chairman co-ordinated the evaluation 
of the Board, and the Chairman of the Audit & Risk 
Committee co-ordinated the evaluation of the 
Chairman. In 2016, the Company Secretary collated 
and analysed questionnaire responses and the 
Chairman discussed feedback with individual Board 
members as appropriate. 
Non-Executive Directors meet without the presence 
of Executive Directors to evaluate the performance of 
the Executive Directors. The Chairman’s performance 
is reviewed by the Non-Executive Directors. The time 
commitment required from Non-Executive Directors 
is reviewed as part of the annual performance 
evaluation. 
Corporate Governance Report Directors’ Report 25 – 47 34
Areas for improvement and/ or key objectives for the 
Board are identified and discussed,  including the 
training and development needs of the Directors, 
and objectives for the forthcoming financial year are 
agreed and set. The table below sets out certain key 
objectives set during the 2015 evaluation process and 
how those objectives were achieved during 2016.
The Board is discussing the insights gained through 
the 2016 evaluation process and corresponding 
objectives for 2017. Themes include: (i) ensuring that 
the Board is able to draw upon an effective balance 
of skills and experience to deliver the Company’s 
strategic objectives, (ii) supporting the delivery 
of strategic objectives through clear and effective 
prioritisation of investment and resources, (iii) 
2016 Objectives 2016 Achievements
Supplement the Board’s expertise through 
appointment of an independent Non-Executive 
Director with corporate finance experience
Emma Tinker was appointed as independent Non-
Executive Director in September 2016.
Review Chairmanship of all Board Committees Following the review, Emma Tinker succeeded Martin 
Edwards as Chair of the Remuneration Committee in 
September 2016.
Ensure all Board and Committee T erms of 
Reference are up to date and fit for purpose
The Board adopted new T erms of Reference in the 
first quarter of 2016, including an up to date list of 
Matters Reserved for the Board.
The existing T erms of Reference for the Audit & Risk 
Committee were reviewed and  remain up to date 
and fit for purpose.
The Board adopted updated T erms of Reference for 
the Remuneration Committee in the first quarter of 
2016.
Review Board appointment processes and consider 
establishment of Nominations Committee
As an intermediate step, the Board resolved to 
expand the scope of the existing Remuneration 
Committee to include the functions of a 
Nominations Committee. New T erms of 
Reference for the dual-purpose Nominations and 
Remuneration Committee were adopted during the 
final quarter of 2016.
Improve consistency of the Company’s 
remuneration for Executive and Non-Executive 
Directors and improve clarity and transparency of 
remuneration for Executive Directors
Non-Executive Director fees have been calibrated 
against an external benchmark and changes 
implemented.
Previous bonus and incentive schemes for Executive 
Directors were replaced with a new bonus structure 
and long-term incentive plan, as detailed in the 
Directors’ Remuneration Report . 
Increase participation of senior leaders from 
across the business in Board proceedings wherever 
relevant and appropriate
Members of the Executive team and other senior 
leaders across the business regularly present directly 
to the Board or relevant Committee. Informal events 
also took place throughout the year. 35
Strategic Report Directors’ Report Financial Statements
continuing to enhance the Company’s approach to 
corporate governance, including whether there may 
be a requirement to appoint a senior independent 
director, and (iv) improving transparency of the 
corporate governance improvements the Board is 
pursuing. The Board will be pleased to report further 
developments in due course.
The Nominations and Remuneration Committee
The members of the Nominations and Remuneration 
Committee are Emma Tinker (Chair), John Maltby, 
Francesca Ecsery and Martin Edwards. Emma Tinker 
was appointed as Chair of the Committee on 2 
September 2016 and succeeds Martin Edwards, who 
remains a member of the Committee. 
Details of the number of Committee meetings and 
the attendance of Committee members during the 
year ended 31 December 2016 are set out in the table 
on page 32. 
Following the appointment of Emma Tinker and 
David Brooks to the Board during the year, the Board 
recognised the need to establish a Nominations 
Committee to deal specifically with matters such 
as succession planning, and the recruitment and 
appointment of new Directors. The members of 
the Nominations Committee being the same as 
the members of the Remuneration Committee, 
the Board decided to form one Committee 
responsible for dealing with both Nominations and 
Remuneration, with formal T erms of Reference for 
this Committee clearly setting out separately the 
duties relating to Nominations and Remuneration. 
This change to the Remuneration Committee was 
established during the year. 
The primary duty of the Nominations and 
Remuneration Committee is to ensure there is a 
formal, rigorous and transparent process for the 
appointment of new Directors to the Board, that 
the Group considers and develops appropriate 
succession plans, and to determine the Group’s 
approach to the remuneration of the Executive 
Directors and senior managers of the Group, on 
behalf of the Board. No Director may be involved in 
any decisions as to their own remuneration.
Nominations
The Committee will keep under review the 
composition of the Board, the mix of skills and 
experience of the Directors and the needs of the 
business, having due consideration for the benefits 
of diversity, and support the Group in developing 
appropriate succession plans to meet its needs. The 
Board remains focussed on gender diversity across 
the organisation and notes in particular the 1:1 ratio 
of women and men amongst Board Directors and 
the Executive team.
The Committee is responsible for reviewing the 
time commitments of each Director both prior to 
all appointments and annually, as part of the Board 
Evaluation process, to ensure that all Directors 
devote sufficient time to the Company to discharge 
their duties effectively.
Remuneration
Further details of the work of the Nominations and 
Remuneration Committee during the year in relation 
to Company’s remuneration policy are set out in the 
Directors’ Remuneration Report on pages 40 to 47.
Audit and Risk Management Committee
The members of the Audit and Risk Management 
Committee are Richard Squires (Chair), John Maltby 
and Francesca Ecsery. John Maltby is considered 
to have recent, relevant financial experience. The 
Chief Executive and Chief Financial Officer attend 
meetings of the Committee by invitation only. Details 
of the number of meetings held during the year and 
attendance of Committee members are set out in 
the table on page 32.
The primary duty of the Audit and Risk Management 
Committee is to oversee the accounting and 
financial reporting process, the internal accounting 
practices, external audit arrangements and 
effectiveness of the Group’s risk management and 
internal control system. 
The Audit and Risk Management Committee also 
meets at least annually with the Group’s external 
auditors to review and agree the auditor services 
being provided to the Group, including any non-
audit services. It also meets with external auditors, 
without management being present, to discuss the 
audit process.
Corporate Governance Report Directors’ Report 25 – 47 36
Risk management and internal controls
The Board has overall responsibility for the Group’s 
system of internal controls. The responsibility for 
reviewing the effectiveness of its internal control 
system has been delegated to the Audit and Risk 
Management Committee, which reviews this on 
an annual basis. The system of internal controls is 
designed to manage, rather than eliminate, the risk 
of failure to achieve business objectives.
Internal audit function
The Company recognised the need to have an 
internal audit function in 2014, and appointed a Head 
of Internal Risk and Audit who reports directly to the 
Chief Financial Officer. 
The Company’s internal audit function seeks to 
build on initiatives such as the Company’s Guiding 
Principles, which were designed to enhance the 
control environment. Reporting into the Audit and 
Risk Management Committee, the function has 
carried out audit activity to provide assurance that 
key risks are being identified and mitigated, and 
associated controls are operating effectively.
Whistleblowing Policy
The Group’s whistleblowing policy is supported by a 
clear process, which includes a secure, independent 
third party helpline, through which any person, 
including employees, consultants, contractors, 
interns, casual or agency workers, may raise 
concerns about wrong doing, poor practices and/
or dangers in relation to the Company’s business 
dealings or activities, including bribery, fraud (or 
other criminal activity), miscarriages of justice, 
health and safety risks, damage to the environment 
and any breach of legal or professional obligations.
The Whistleblowing Policy is reviewed annually by 
the Audit and Risk Management Committee. Any 
whistleblowing incidents and their outcomes are 
reported to the Committee. No reports were made 
during 2016.
During the year, Good Energy announced that its partnership with the 
National Trust would continue for a further two years. 37
Strategic Report Directors’ Report Financial Statements
Referral Arrangements
The Company has operated and continues to 
operate referral arrangements with certain political 
parties.  It considers these to be commercial 
arrangements, with a referral payment made for 
each customer referred to Good Energy.  However, 
the Companies Act 2006 definitions of the making 
of political donations or the incurring of political 
expenditure are capable of a wide interpretation. In 
the interests of transparency, the Company obtained 
shareholder approval for the referral arrangements 
at its Annual General Meetings in 2015 and 2016, 
and anticipates requesting that authorisation be 
refreshed at the Annual General Meeting in 2017. 
Going concern
The Group and Board closely monitor and manage 
liquidity. The Directors have taken account of 
the current financial position of the Group, its 
anticipated future performance and investment 
plans in assessing the Group’s going concern status. 
Consideration has also been given to the net current 
liabilities position as at 31 December 2016, as set out 
on pages 19 to 20 and in Note 2.2 to the Financial 
Statements. The Directors consider that the Group 
has adequate resources to continue in operation for 
the foreseeable future and continue to adopt the 
going concern basis in preparing the 2016 financial 
statements. Further details on this can be found in 
Note 2.2 to the Financial Statements.
Directors’ responsibilities statement
The Directors are responsible for preparing the 
Annual Report and the financial statements in 
accordance with applicable law and regulation.
Company law requires the Directors to prepare 
financial statements for each financial year. 
Under that law the Directors have prepared the 
Group financial statements in accordance with 
International Financial Reporting Standards (IFRSs) 
as adopted by the European Union and parent 
company financial statements in accordance with 
International Financial Reporting Standards (IFRSs) 
as adopted by the European Union. Under company 
law the Directors must not approve the financial 
statements unless they are satisfied that they give 
a true and fair view of the state of affairs of the 
Group and parent company and of the profit or loss 
of the Group and parent company for that period. In 
preparing the financial statements, the Directors are 
required to:
• select suitable accounting policies and then apply 
them consistently;
• state whether applicable IFRSs as adopted by 
the European Union have been followed for the 
Group financial statements and IFRSs as adopted 
by the European Union have been followed for 
the Company financial statements, subject to any 
material departures disclosed and explained in the 
financial statements;
• make judgements and accounting estimates that 
are reasonable and prudent; and
• prepare the financial statements on the going 
concern basis unless it is inappropriate to presume 
that the Group and parent company will continue 
in business.
The Directors are responsible for keeping adequate 
accounting records that are sufficient to show 
and explain the Group and parent company’s 
transactions and disclose with reasonable accuracy 
at any time the financial position of the Group and 
parent company and enable them to ensure that the 
financial statements comply with the Companies 
Act 2006 and, as regards the Group financial 
statements, Article 4 of the IAS Regulation.
The Directors are also responsible for safeguarding 
the assets of the Group and parent company and 
hence for taking reasonable steps for the prevention 
and detection of fraud and other irregularities.
The Directors of the ultimate parent company are 
responsible for the maintenance and integrity of the 
ultimate parent company’s website. Legislation in 
the United Kingdom governing the preparation and 
dissemination of financial statements may differ 
from legislation in other jurisdictions.
The Directors consider that the Annual Report 
and Accounts, taken as a whole, is fair, balanced 
and understandable and provides the information 
necessary for shareholders to assess the Group and 
parent company’s performance, business model and 
strategy.
Each of the Directors, whose names and functions 
are listed in the Directors’ report confirm that, to the 
best of their knowledge:
• the parent company financial statements, which 
have been prepared in accordance with IFRSs as 
adopted by the European Union, give a true and 
fair view of the assets, liabilities, financial position 
and result of the Company;
Corporate Governance Report Directors’ Report 25 – 47 38
• the Group financial statements, which have been 
prepared in accordance with IFRSs as adopted by 
the European Union, give a true and fair view of the 
assets, liabilities, financial position and profit of 
the Group; and
• the Directors’ Report includes a fair review of the 
development and performance of the business 
and the position of the Group and parent 
company, together with a description of the 
principal risks and uncertainties.
In the case of each Director in office at the date the 
Directors’ Report is approved:
•  so far as the Director is aware, there is no relevant 
audit information of which the Group and parent 
company’s auditors are unaware; and
• they have taken all the steps that they ought 
to have taken as a Director in order to make 
themselves aware of any relevant audit 
information and to establish that the Group and 
parent company’s auditors are aware of that 
information.
Disclosure of Information to Auditors
So far as each Director is aware, there is no relevant 
audit information of which the Company’s auditors 
are unaware, and each Director has taken all 
the steps that he/she ought to have taken as a 
Director in order to make him/herself aware of any 
relevant audit information and to establish that the 
Company’s auditors are aware of that information.
Audit fees
The Audit and Risk Management Committee 
has reviewed the remuneration received by 
PricewaterhouseCoopers LLP for non-audit work 
conducted during the year. The fees for non-audit 
work were lower than the audit fee. For further 
details regarding fees paid, see note 6 to the 
financial statements on page 77.
Auditor independence
The Audit and Risk Management Committee 
monitors the Company’s safeguards against 
compromising the objectivity and independence of 
the external auditors by performing an annual review 
of non-audit services provided to the Group and 
their cost, reviewing whether the auditors believe 
there are any relationships that may affect their 
independence and obtaining written confirmation 
from the auditors that they are independent. 
For the financial year ended 31 December 2016, the 
Committee has conducted its review of the auditors’ 
independence and concluded that no conflict of 
interest exists between PricewaterhouseCoopers 
LLP audit and non-audit work, and that their 
involvement in non-audit matters, which mainly 
comprised advice in respect of the Company’s 
Performance Share Plan, was the most effective  
way of conducting the Company’s business during 
the year.
Auditor appointment policy
The Audit and Risk Management Committee has 
reviewed its policy for awarding non-audit work. 
The Company has used PricewaterhouseCoopers 
LLP for advice in relation to the design and 
implementation of the new Performance Share 
Plan which was implented during the year. The 
Committee considered whether this constituted a 
threat to independence and confirmed that it was 
comfortable that there were appropriate safeguards 
in place. The Committee will consider whether to 
re-tender the audit after a five year period, or earlier 
if appropriate.
Reappointment of Auditors
PricewaterhouseCoopers LLP acted as auditors for 
the financial year to 31 December 2016. A resolution 
to reappoint PricewaterhouseCoopers LLP as 
auditors will be proposed at the Annual General 
Meeting.
Communications with Shareholders 
The Company engages with institutional 
shareholders via investor road shows which are 
held twice a year, after release of the Company’s 
interim and full year results. Meetings are held with 
current and prospective shareholders, seeking their 
input as to what initiatives they wish to hear more 
about and gathering feedback as to what additional 
information they would like the Company to provide 
and what they would like to see the Company  39
Strategic Report Directors’ Report Financial Statements
do. In addition to these meetings, the Company’s 
brokers provide feedback to the Company from any 
institutional investors who use the brokers’ services 
to buy or sell shares in the Company. 
A large proportion of the Company’s shareholder 
base is comprised of private shareholders, many of 
whom are customers of the Company. The Company 
takes steps to ensure that communications with 
private shareholders are effective and appropriate 
for that group. Following a survey of bondholders 
and customers, the results of which indicated that 
there was high demand to invest further in the 
Company, the Company conducted a share offer in 
June 2016 for which take-up was oversubscribed.
The Company is mindful of AIM Rules, MIFID and 
Market Abuse Regulations when communicating 
with its shareholders.
Employees
The Group’s employment policies follow best 
practice based on equal opportunities for all 
employees, irrespective of race, gender, nationality, 
colour, sexual orientation, disability, marital status, 
religion or age. All decisions relating to employment 
are objective, free from bias and based upon work 
criteria and individual merit. The Company operates 
on the principle that a workplace where people’s 
differences are valued creates a more productive, 
innovative and effective organisation. Consultation 
with employees or their representatives has 
continued at all levels, with the aim of ensuring 
that views are taken into account when decisions 
are made that are likely to affect their interests 
and that all employees are aware of the financial 
and economic performance of the business. 
Communication with all employees continues 
through a variety of mechanisms, including regular 
team briefs and twice-yearly off-site all-company 
meetings.  A network of Company champions was 
established during 2015 to encourage grassroots 
involvement and has made a significant contribution 
to all aspects of working at Good Energy during  
the year.
Further details relating to employees are set out in 
the Corporate Responsibility report on pages 13 to 14.
By order of the Board
Corporate Governance Report
Stephen Rosser
Company Secretary
27 March 2017
Directors’ Report 25 – 47 40
Directors’ Remuneration Report
Introduction
This report sets out the information about the 
remuneration of the Directors of the Company for 
the year ended 31 December 2016. This report has 
been prepared in accordance with the requirements 
for AIM listed companies set out in the Companies 
Act 2006 and the AIM rules. 
Following a review of the Company’s remuneration 
policy, the Remuneration Committee determined 
that the existing bonus and share-based incentive 
schemes should be replaced with new schemes 
that align with current best practice and which 
are designed to motivate and incentivise key 
talent to assist the Company in achieving its 
strategic aims. The Remuneration Committee 
conducted a tender process and, subsequently, 
appointed PricewaterhouseCoopers LLP as external 
remuneration consultant to assist with the review 
of the Company’s remuneration policy and the 
implementation of a new share-based incentive 
scheme for Executive Directors.  
The Company consulted with its largest ten 
shareholders with regard to the implementation of:
•  a revised Annual Bonus Plan that encompasses 
both financial and non-financial annual 
performance targets, details of which are set out 
on page 43, and
•  a new Performance Share Plan for Executive 
Directors and members of the senior management 
team, details of which are set out on page 45.
Remuneration Committee and policy
Details of the Company’s Remuneration Committee 
are set out on page 35.
The Remuneration Committee has designed a 
remuneration policy to ensure that the Company 
is able to attract, retain and motivate its Executive 
Directors and senior management.
The Group operates in a competitive environment. 
It therefore sets out to provide competitive 
remuneration to all of its employees, appropriate to 
the business environment, geographical location and 
strategic aims of the Company.
The Group aims to align the interests of shareholders 
with those of Executive Directors and senior 
management by giving the latter the opportunity to 
build up a shareholding interest in the Company.
Service agreements, notice periods and 
termination payments 
The service agreements for the Executive Directors 
are not for a fixed term and may in normal 
circumstances be terminated on the notice periods 
listed opposite. The remuneration of the Chairman 
of the Company and the Non-Executive Directors 
consists of fees that are paid monthly in arrears. 
The Chairman and the Non-Executive Directors did 
not participate in any bonus scheme or long-term 
incentive reward schemes, nor did they accrue any 
pension entitlement. Following the publication in 
August 2015 of HMRC’s express confirmation of the 
travel rules that apply to Non-Executive Directors, 
the Company reimburses Non-Executive Directors’ 
travel expenses between home and the Company’s 
Head Office. The key terms of the Non-Executives 
Directors’ appointments are set out in the  
table below. 
The Committee carried out a Non-Executive Director 
fees benchmarking exercise during the year, as a 
result of which the Committee determined that 
Non-Executive Director fees should be updated and 
aligned. With effect from 1 April 2016, the annual 
fee payable to the Chairman shall be £45,000, to 
all Non-Executive Directors the annual fee shall be 
£25,000, and an additional fee of £5,000 shall be 
payable for chairing a Committee.
Executive salaries were also benchmarked during the 
year against AIM company data, adjusted to reflect 
the size of the Company. Juliet Davenport’s salary 
was increased by 4.5% as a result, which increase 
was broadly in line with pay rises across the Group. 41
Strategic Report Directors’ Report Financial Statements
Name Position Date of contract Notice period
Annual Salary / 
Fee (£)
Executive Directors
Juliet Davenport Chief Executive 02 August 2007 9 months 200,000
Denise Cockrem Chief Financial Officer 22 January 2014 6 months 182,000
David Brooks Managing Director 02 September 2016 6 months 175,000
Non-Executive Directors
John Maltby 15 October 2012 3 months 45,000
Richard Squires 28 June 2011 3 months 30,000
Martin Edwards 07 May 2008 3 months 25,000
Francesca Ecsery 15 November 2012 3 months 25,000
Emma Tinker 02 September 2016 3 months 30,000
Directors’ Remuneration Report Directors’ Report 25 – 47 42
Salary / fee 
2016 (£)
Pension 
 2016 (£)
Benefits in  
kind 2016 
(£)
Annual Bonus 
2016 (£)
T otal 
 2016 (£)
T otal  
2015 (£)
Executive Directors
Juliet Davenport 198,942 25,000 12,009 42,963 278,914 222,740
Denise Cockrem 182,000 18,200 11,592 40,950 252,742 211,957
David Brooks ¹ 58,333 5,833 4,043 12,000 80,209 -
T otal 439,275 49,033 27,644 95,913 611,865 434,697
Non-Executive Directors
John Maltby 43,950 - - - 43,950 41,303
Richard Squires 29,513 - - - 29,513 28,050
Martin Edwards 24,750 - - - 24,750 24,000
Francesca Ecsery 23,977 - - - 23,977 20,910
Emma Tinker ¹, 
2
21,000 - - - 21,000 -
T otal 143,190 - - - 143,190 114,263 
Overall total 582,465 49,033 27,644 95,913 755,055      548,960 
Salaries/fees, annual bonus and benefits (Audited)
Notes
1. Pro-rated for period of directorship. Joined the Board on 2 September 2016
2. Includes an additional fee for work carried out by Emma Tinker to assist the Corporate Finance team with asset funding options. 43
Strategic Report Directors’ Report Financial Statements
Annual Bonus scheme
Operation of the scheme
In previous years, the Company has operated a 
bonus pool that was generated from profits and 
distributed based on grade and performance. The 
Remuneration Committee determined that a new 
bonus scheme should be implemented to better 
suit the size and culture of the Company, and ensure 
that performance against the Company’s key 
performance indicators is rewarded. The new annual 
bonus scheme, which operates across the Group for 
employees at all levels, was implemented during the 
year and has effect in respect of the year ended 31 
December 2016.
All bonuses under the new scheme are individually 
capped. A maximum potential bonus of 75% of 
Executive Directors’ salary is payable in relation 
to the Company’s performance against four key 
performance metrics.  The performance metrics  
and their relative weightings are shown in the  
table below. 
Maximum bonus will only be payable in the event 
that stretch targets for all four of these performance 
metrics are met. Performance against the targets 
is measured on a sliding scale basis between the 
achievement of threshold, on-target and stretch 
targets, starting with one third of the potential 
bonus being payable where threshold targets are 
met. No bonus will be payable unless the Group’s 
profit before tax meets the threshold targets unless 
the Remuneration Committee, in its discretion, 
determines otherwise. 
The Committee also retains discretion, under the 
bonus scheme rules, to adjust any payments in line 
with individual performance. 
Individual performance targets are set annually and 
reviewed at the end of the relevant financial year, 
and annual targets for each of the four Company 
performance metrics will be set by the Remuneration 
Committee prior to commencement of each 
financial year. 
The targets for 2017 are deemed to be commercially 
sensitive and are not therefore disclosed. However, 
retrospective disclosure of performance against 
targets will be provided in the Company’s 
Remuneration Report for the year ending 31 
December 2017.
Measure Strategic objective Weighting
Group profit before tax Deliver profit growth 60%
Absolute net promoter score Maintain customer satisfaction 
ratings
20%
Employee engagement Attract and retain employees 
with the right skills, knowledge 
and mind-set to help deliver the 
Company’s growth plans
10%
Corporate CO2 reduction Help to reduce carbon emissions 10%
Directors’ Remuneration Report Directors’ Report 25 – 47 44
Measure 2016 outturn 2015 outturn
2016 performance  
against target
 
Profit before tax
 
£ 1.4m
 
£ 0.1m
 
Below threshold 
NPS 45 40 Stretch
Employee 
engagement
82% 78.5% Between on target and 
stretch
Corporate CO2 
reduction
T o create a baseline 
for carbon footprint of 
operations
N/A Threshold 
2016 targets and performance
The Company’s performance against targets and 
actual outturn for the financial year ended 31 
December 2016 are set out in the table below.
Although the Group profit before tax was below 
threshold for 2016, the Remuneration Committee 
considered that the profit on the sale of Oaklands 
site, which exchanged on 21 December 2016 and 
completed on 3 January 2017, should be taken into 
account when considering whether or not a bonus 
should be paid.  Accordingly, the Remuneration 
Committee has approved payment to eligible 
participants of a bonus of approximately 20% of 
salary, which will be charged against the gain  
on sale reported in the 2017 results.  These items  
will be excluded for the purpose of calculating 
whether financial targets have been met for 2017 
bonus purposes. 
No Executive bonus costs in respect of 2016 
performance have been reflected in the results 
for 31 December 2016. A bonus payment was paid 
during the year relating to the completion of a site 
sale during 2016 which commenced during 2015. 
This profit on sale is reflected in the results for 31 
December 2016, however the profit and related 
bonus costs were excluded for the purpose of 
calculating whether 2016 financial targets were met. 45
Strategic Report Directors’ Report Financial Statements
Performance Share Plan (“PSP”)
Operation of the scheme
This new scheme, implemented during 2016 
following consultation with the Company’s ten 
largest shareholders, is designed to enhance 
alignment between Executive Directors and 
shareholders, and better reflect current market 
practice, including the addition of performance 
conditions for the vesting of awards, which are 
described in detail below, where previously there 
were none.
Usual policy is to grant awards to Executive Directors 
over shares worth up to 50% of salary at the time 
of grant. The maximum limit of an award to any 
individual under the PSP in any financial year 
would be 100% of annual salary, subject to the 
Remuneration Committee’s discretion to increase to 
150% of salary in exceptional circumstances. 
Awards granted under the scheme shall vest three 
years from the date of grant, subject to continued 
employment and satisfaction of performance criteria 
which shall be measured over a three year period. 
Performance against targets is measured on a sliding 
scale, with 20% of the relevant part of the award 
vesting at threshold level, 50% vesting for on-target 
performance through to 100% vesting for achieving 
stretch targets. No award will vest unless T otal 
Shareholder Return is positive over the three year 
measurement period.
The Committee has, exceptionally, approved the 
grant of awards equivalent to 100% of salary for 
both the Chief Executive Officer and the Chief 
Financial Officer during 2016 to reflect the fact that 
no awards were granted in respect of 2015. 
The Committee may, at any time up to and including 
vesting, reduce the vesting level of awards where 
there has been, amongst other things, a material 
mis-statement in the accounts, an error in any 
information on which performance targets were 
based, gross misconduct or fraud by the employee.
Performance targets
The performance metrics and their relative 
weightings for the 2016 grant of awards are shown in 
the table below. The targets themselves are deemed 
to be commercially sensitive and are not therefore 
disclosed. However, retrospective disclosure of 
performance against targets will be provided at the 
end of the relevant measurement period.
Measure Strategic objective Weighting
Earnings Per Share Drive shareholder value 60%
Relative net promoter score 
(relative to ‘Big 6’ energy 
companies)
Maintain higher customer 
satisfaction ratings than ‘Big 6’ 
energy firms
20%
Customer CO2 reduction Ensure long term sustainability  
of our own operations
20%
Directors’ Remuneration Report Directors’ Report 25 – 47 46
Directors’ share options
Details of the Directors’ share options outstanding at 31 December 2016 are shown below.
Name
Date option 
granted
Number of options 
outstanding as at 
31 December 2016
Option price
Exercised during 
2016
Cancelled/ 
surrendered 
during 2016
Juliet Davenport 01/06/2004 35,000 £0.75 - -
Juliet Davenport 13/02/2012 86,956 £1.15 - -
Juliet Davenport 13/02/2012 17,390 £1.15 - -
Juliet Davenport 18/09/2012 189,052 £0.50 - -
Juliet Davenport 13/07/2013 144,000 £1.25 - -
Juliet Davenport ¹ 07/07/2015 80,350 £0 - -
Juliet Davenport 22/04/2016 88,496 £0.05 - -
T otal - 641,244 - - -
Notes
1. These awards shall vest 2 years from the date of grant. The reason for this is that, although the Remuneration Committee resolved to grant the 
awards during the summer of 2014, as the Company was in a close period for a prolonged period of time and there were a number of changes 
in the Company Secretariat function, the awards were not granted until July 2015. 47
Strategic Report Directors’ Report Financial Statements
Emma Tinker
Chair of Nominations and Remuneration Committee
27 March 2017
Name
Date option 
granted
Number of options 
outstanding as at 
31 December 2016
Option price
Exercised during 
2016
Cancelled/ 
surrendered 
during 2016
Denise Cockrem ¹ 07/07/2015 21,822 £0 - -
Denise Cockrem ¹ 07/07/2015 200,000 £2.285 - -
Denise Cockrem 22/04/2016 80,531 £0.05 - -
T otal - 302,353 - - -
David Brooks 15/10/2015 100,000 £2.265 - -
David Brooks 22/04/2016 38,717 £0.05 - -
T otal - 138,717 - - -
Richard Squires 13/02/2012 75,000 £1.15 - -
Overall T otal - 1,018,597 - - -
Directors’ share options continued
Directors’ Remuneration Report Directors’ Report 25 – 47 48–51
T o the members of Good Energy Group PLC
Independent 
Auditors’ Report 49
Strategic Report Directors’ Report Financial Statements
Our opinion
In our opinion:
• Good Energy Group PLC’s group financial 
statements and parent company financial 
statements (the “financial statements”) give  
a true and fair view of the state of the group’s and 
of the parent company’s affairs as at 31 December 
2016 and of the group’s profit and the group’s and 
the parent company’s cash flows for the year  
then ended;
• the group financial statements have been properly 
prepared in accordance with International 
Financial Reporting Standards (“IFRSs”) as 
adopted by the European Union;
• the parent company financial statements have 
been properly prepared in accordance with 
IFRSs as adopted by the European Union and as 
applied in accordance with the provisions of the 
Companies Act 2006; and
• the financial statements have been prepared 
in accordance with the requirements of the 
Companies Act 2006.
What we have audited
The financial statements, included within the Annual 
Report and Financial Statements (the “Annual 
Report”), comprise:
• the Consolidated and Parent Company 
Statements of Financial Position as at 31 
December 2016;
• the Consolidated Statement of Comprehensive 
Income for the year then ended;
• the Consolidated and Parent Company 
Statements of Cash Flows for the year then ended;
• the Consolidated and Parent Company 
Statements of Changes in Equity for the year then 
ended; and
• the notes to the financial statements, which 
include a summary of significant accounting 
policies and other explanatory information.
Certain required disclosures have been presented 
elsewhere in the Annual Report, rather than in the 
notes to the financial statements. These are cross-
referenced from the financial statements and are 
identified as audited.
The financial reporting framework that has been 
applied in the preparation of the financial statements 
is IFRSs as adopted by the European Union and, as 
regards the parent company financial statements, 
as applied in accordance with the provisions of the 
Companies Act 2006, and applicable law.
In applying the financial reporting framework, 
the directors have made a number of subjective 
judgements, for example in respect of significant 
accounting estimates. In making such estimates, they 
have made assumptions and considered future events.
Independent auditors’ report to the 
members of Good Energy Group PLC
Report on the  
financial statements
Independent Auditors’ Report 50
Opinions on other matters 
prescribed by the Companies 
Act 2006
In our opinion, based on the work undertaken in the 
course of the audit:
• the information given in the Strategic Report and 
the Directors’ Report for the financial year for 
which the financial statements are prepared is 
consistent with the financial statements; and
• the Strategic Report and the Directors’ Report 
have been prepared in accordance with applicable 
legal requirements.
In addition, in light of the knowledge and 
understanding of the group, the parent company 
and their environment obtained in the course of the 
audit, we are required to report if we have identified 
any material misstatements in the Strategic Report 
and the Directors’ Report. We have nothing to report 
in this respect. 
Other matters on which we are 
required to report by exception
Adequacy of accounting records and information 
and explanations received
Under the Companies Act 2006 we are required to 
report to you if, in our opinion:
• we have not received all the information and 
explanations we require for our audit; or
• adequate accounting records have not been kept 
by the parent company, or returns adequate for our 
audit have not been received from branches not 
visited by us; or
• the parent company financial statements are not 
in agreement with the accounting records and 
returns.
We have no exceptions to report arising from  
this responsibility.
Directors’ remuneration
Under the Companies Act 2006 we are required to 
report to you if, in our opinion, certain disclosures 
of directors’ remuneration specified by law are not 
made. We have no exceptions to report arising from 
this responsibility.  
Responsibilities for the financial 
statements and the audit
Our responsibilities and those of the directors
As explained more fully in the Directors’ 
responsibilities statement set out on pages 37 & 38, 
the directors are responsible for the preparation of 
the financial statements and for being satisfied that 
they give a true and fair view.
Our responsibility is to audit and express an opinion 
on the financial statements in accordance with 
applicable law and International Standards on 
Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). 
Those standards require us to comply with the 
Auditing Practices Board’s Ethical Standards  
for Auditors.
This report, including the opinions, has been 
prepared for and only for the parent company’s 
members as a body in accordance with Chapter 3 of 
Part 16 of the Companies Act 2006 and for no other 
purpose. We do not, in giving these opinions, accept 
or assume responsibility for any other purpose or to 
any other person to whom this report is shown or 
into whose hands it may come save where expressly 
agreed by our prior consent in writing. 51
Strategic Report Directors’ Report Financial Statements
Colin Bates (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Bristol
27 March 2017
What an audit of financial statements involves
We conducted our audit in accordance with ISAs 
(UK & Ireland). An audit involves obtaining evidence 
about the amounts and disclosures in the financial 
statements sufficient to give reasonable assurance 
that the financial statements are free from material 
misstatement, whether caused by fraud or error. This 
includes an assessment of: 
• whether the accounting policies are appropriate 
to the group’s and the parent company’s 
circumstances and have been consistently applied 
and adequately disclosed; 
• the reasonableness of significant accounting 
estimates made by the directors; and
• the overall presentation of the financial 
statements. 
We primarily focus our work in these areas by assessing 
the directors’ judgements against available evidence, 
forming our own judgements, and evaluating the 
disclosures in the financial statements.
We test and examine information, using sampling and 
other auditing techniques, to the extent we consider 
necessary to provide a reasonable basis for us to draw 
conclusions. We obtain audit evidence through testing 
the effectiveness of controls, substantive procedures 
or a combination of both. 
In addition, we read all the financial and non-financial 
information in the Annual Report to identify material 
inconsistencies with the audited financial statements 
and to identify any information that is apparently 
materially incorrect based on, or materially inconsistent 
with, the knowledge acquired by us in the course of 
performing the audit. If we become aware of any 
apparent material misstatements or inconsistencies 
we consider the implications for our report. With 
respect to the Strategic Report and Directors’ Report, 
we consider whether those reports include the 
disclosures required by applicable legal requirements.
Independent Auditors’ Report Financial 
Statements
52–104
Consolidated Statement of Comprehensive Income  53 
Consolidated Statement of Financial Position  54 
Parent Company Statement of Financial Position  55 
Consolidated Statement of Changes in Equity  56 
Parent Company Statement of Changes in Equity  57 
Consolidated Statement of Cash Flows  58 
Parent Company Statement of Cash Flows  59 
Notes to the Financial Statements  60 – 103 
Directors and Corporate Resources  104 53
Strategic Report Directors’ Report Financial Statements
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2016
Note
2016
£000’s
2015
£000’s
REVENUE 5 90,437 64,281
Cost of Sales 5 (62,905) (42,982)
GROSS PROFIT 27,532 21,299
Administrative Expenses 6 (21,582) (17,065)
OPERATING PROFIT 6 5,950 4,234
Finance Income 10 18 23
Finance Costs 11 (4,534) (4,129)
PROFIT BEFORE TAX 1,434 128   
Taxation 12 (51) (323)
PROFIT/(LOSS) FOR THE YEAR 1,383 (195)
OTHER COMPREHENSIVE INCOME:
Other comprehensive income for the year, net of tax - -
TOTAL COMPREHENSIVE INCOME/(EXPENSE) FOR THE YEAR  
ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY 1,383 (195)
Earnings/(Loss) per share                 
                                                                                                           -  Basic 13 9.1p (1.4p)
                                                                                                           -  Diluted 13 8.8p (1.4p)
 
The notes on pages 60 to 103 form part of these Financial Statements.
Financial Statements 52 – 104 54
Consolidated Statement of Financial Position
As at 31 December 2016 
Company registered no: 04000623 
Note
2016
£000’s
2015
£000’s
Non-current assets
Property, plant and equipment 14 58,247 60,984
Intangible assets 15 3,801 3,317
Restricted deposit accounts 3 2,831 2,803
Available-for-sale financial assets 16b 500 500
Total non- current assets 65,379 67,604
Current assets
Inventories 17 9,799 9,482
Trade and other receivables 18 16,204 11,598
Current tax receivable 12 167 126
Cash and cash equivalents 19 6,289 4,751
Current assets held for sale 20 5,095 -
Total current assets 37,554 25,957
TOTAL ASSETS 102,933 93,561
Equity and Liabilities
Capital and reserves
Called up share capital 21 825 748
Share premium account 21 12,546 9,786
EBT shares 21 (1,015) (1,074)
Retained Earnings 8,689 7,483
Total equity attributable to members of the parent company 21,045 16,943
Non- current liabilities
Deferred taxation 22 684 567
Borrowings 23 40,277 55,911
Total non- current liabilities 40,961 56,478
Current liabilities
Borrowings 23 20,981 5,626
Trade and other payables 24 19,936 14,514
Current liabilities held for sale 20 10 -
Total current liabilities 40,927 20,140
Total liabilities 81,888 76,618
TOTAL EQUITY AND LIABILITIES 102,933 93,561
The Financial Statements on pages 53 to 103 were approved by the Board of Directors on 27 March 2017 and 
signed on its behalf by: 
 
 
The notes on pages 60 to 103 form part of these Financial Statements.
Juliet Davenport 
Chief Executive 
27 March 2017  55
Strategic Report Directors’ Report Financial Statements
Parent Company Statement of Financial Position
As at 31 December 2016 
Company registered no: 04000623 
Note
2016
£000’s
2015
£000’s
Non-current assets
Property, plant and equipment 387 -
Investments 16a 42,256 35,206
Total non- current assets 42,643 35,206
Current assets
Trade and other receivables 18 74 22
Cash and cash equivalents 19 266 234
Total current assets 340 256
TOTAL ASSETS 42,983 35,462
Equity and Liabilities
Capital and reserves
Share capital 21 825 748
Share premium account 21 12,546 9,786
EBT shares 21 (1,015) (1,074)
Retained Earnings 6,997 4,713
Total Equity 19,353 14,173
Non- current liabilities
Borrowings 23 211 14,646
Total non- current liabilities 211 14,646
Current liabilities
Borrowings 23 23,089 6,511
Trade and other payables 24 330 132
Total current liabilities 23,419 6,643
Total liabilities 23,630 21,289
TOTAL EQUITY AND LIABILITIES 42,983 35,462
The Financial Statements on pages 53 to 103 were approved by the Board of Directors on 27 March 2017 and 
signed on its behalf by: 
The notes on pages 60 to 103 form part of these Financial Statements.
Juliet Davenport 
Chief Executive 
27 March 2017
Financial Statements 52 – 104 56
Consolidated Statement of Changes in Equity
For the year ended 31 December 2016
Note Called 
Up Share  
Capital
Share 
Premium 
Account
EBT 
Shares
Retained
Earnings
Total 
Equity
£000’s £000’s £000’s £000’s £000’s
At 1 January 2015 733 9,077 (127) 8260 17,943
Loss for the year - - - (195) (195)
Other comprehensive income for the year - - - - -
Total comprehensive expense for the year - - - (195) (195)
Share based payments 27 - - - 51 51
Tax charge relating to share option 
scheme 22 - - - (151) (151)
Issue of ordinary shares 21 15 709 - 724
Purchase of ordinary shares by EBT 21 - - (1,150) - (1,150)
Sale of shares by EBT 21 - - 203 (4) 199
Dividend Paid 25 - - - (478) (478)
Total contributions by and distributions 
to owners of the parent, recognised 
directly in equity 15 709 (947) (582) (805)
At 31 December 2015 748 9,786 (1,074) 7,483 16,943
At 1 January 2016 748 9,786 (1,074) 7,483 16,943
Profit for the year - - - 1,383 1,383
Other comprehensive income for 
the year - - - - -
Total comprehensive income for the year - - - 1,383 1,383
Share based payments 27 - - -         230 230
Tax charge relating to share option 
scheme 22 - - -   98 98
Issue of ordinary shares 21 77 2,760 - - 2,837
Sale of shares by EBT 21 - - 59  (14) 45
Dividend Paid 25 - - - (491) (491)
Total contributions by and distributions 
to owners of the parent, recognised 
directly in equity 77 2,760 59 (177) 2,719
At 31 December 2016 825 12,546 (1,015) 8,689 21,045
The notes on pages 60 to 103 form part of these Financial Statements. 57
Strategic Report Directors’ Report Financial Statements
Parent Company Statement of Changes in Equity
For the year ended 31 December 2016
Note Share  
Capital
Share 
Premium 
Account
EBT 
Shares
Retained
Earnings
Total 
Equity
£000’s £000’s £000’s £000’s £000’s
At 1 January 2015 733 9,077 (127) 4,071 13,754
Profit for the year and total 
comprehensive income - - - 1,124 1,124
Issue of ordinary shares 21 15 709 - - 724
Purchase of shares by EBT 21 - - (1,150) - (1,150)
Sale of shares by EBT 21 - - 203 (4) 199
Dividend Paid 25 - - - (478) (478)
Total contributions by and
distributions to owners of the parent, 
recognised directly in equity 15 709 (947) (482) (705)
At 31 December 2015 748 9,786 (1,074) 4,713 14,173
At 1 January 2016 748 9,786 (1,074) 4,713 14,173
Profit for the year and total 
comprehensive income - - - 2,789 2,789
Issue of ordinary shares 21 77 2,760 - - 2,837
Sale of shares by EBT 21 - - 59 (14) 45
Dividend Paid 25 - - - (491) (491)
Total contributions by and 
distributions to owners of the parent, 
recognised directly in equity 77 2,760 59 (505) 2,391
At 31 December 2016 825 12,546 (1,015) 6,997 19,353
The notes on pages 60 to 103 form part of these Financial Statements.
Financial Statements 52 – 104 58
Consolidated Statement of Cash Flows
For the year ended 31 December 2016
Note 2016 2015
£000’s £000’s
Cash flows from operating activities
Cash generated from operations 26 10,656 1,590
Finance income 18 23
Finance cost (4,208) (3,277)
Income tax received 133 59
Net cash flows generated from/(used in) operating 
activities 6,599 (1,605)
Cash flows from investing activities
Purchase of property, plant and equipment (4,958) (17,748)
Purchase of intangible fixed assets 15 (1,851) (492)
Deposit into restricted accounts (29) (2,803)
Net cash flows used in investing activities (6,838) (21,043)
Cash flows from financing activities
Payments of dividends 25 (491) (451)
Proceeds from borrowings 387 24,749
Repayment of borrowings (951) (10,348)
Capital repayments of finance lease (50) -
Proceeds from issue of shares 2,837 -
Purchase of own shares - (453)
Sale of own shares 45 199
Net cash flows generated from financing activities 1,777 13,696
Net increase/(decrease) in cash and cash equivalents 1,538 (8,952)
Cash and cash equivalents at beginning of year 4,751 13,703
Cash and cash equivalents at end of year 6,289 4,751
 
The notes on pages 60 to 103 form part of these Financial Statements. 59
Strategic Report Directors’ Report Financial Statements
Parent Company Statement of Cash Flows
For the year ended 31 December 2016
Note 2016 2015
£000’s £000’s
Cash flows from operating activities
Cash used in operations 26 (1,725) (1,204)
Finance income - 786
Finance cost (977) (1,195)
Income tax paid - (20)
Net cash flows used in operating activities (2,702) (1,633)
Cash Flows from investing activities
Purchase of property, plant and equipment (387) -
Net cash flows used in investing activities (387) -
Cash flows from financing activities
Payment of dividends 25 (491) (451)
Repayment of borrowings - (35)
Intercompany loans movement 780 2,098
Capital repayments of finance lease (50) -
Proceeds from issue of shares 2,837 -
Purchase of own shares - (453)
Sale of own shares 45 199
Net cash generated from financing activities 3,121 1,358
Net increase/(decrease) in cash and cash equivalents 32 (275)
Cash and cash equivalents at beginning of year 234 509
Cash and cash equivalents at end of year 266 234
The notes on pages 60 to 103 form part of these Financial Statements.
Financial Statements 52 – 104 60
Notes to the Financial Statements
For the year ended 31 December 2016
1. General Information
Good Energy Group PLC is  listed on the Alternative Investment Market of the London Stock Exchange and is 
incorporated and domiciled in the United Kingdom.
The principal activities of Good Energy Group PLC are those of a holding and management company to the 
Group and a lender to, and seller of,  generation development sites.
The principal activities of its subsidiaries are: the purchase, generation and sale of electricity from renewable 
sources; the sale of gas; services relating to micro-renewable generation and the development of new 
electricity generation sites.
The purpose of the Annual Report and Financial Statements is to provide information to members of the 
company. It contains certain forward looking statements relating to the operations, performance and 
financial condition of the Group. By their nature these statements involve uncertainty since future events and 
circumstances can differ from those anticipated. Nothing in the Annual Report and Financial Statements 
should be construed as a profit forecast.
These financial statements are presented in pounds sterling because that is the currency of the primary 
economic environment in which the Group operates.
The principal accounting policies applied in the preparation of these consolidated financial statements  
are set out below.  These policies have been consistently applied to all the years presented unless  
otherwise stated.
2. Summary of Significant Accounting Policies
2.1 Basis of preparation of financial statements
These financial statements have been prepared in accordance with International Financial Reporting 
Standards (IFRS) as adopted by the European Union and IFRS Interpretations Committee (IFRSIC) and with 
those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
The financial statements have been prepared on a going concern basis and under the historical cost 
convention or historic cost modified by revaluation of financial assets and financial liabilities held at fair 
value through profit or loss.
The preparation of financial statements in conformity with IFRSs requires the use of estimates and 
assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements 
and the reported amounts of revenues and expenses during the financial year.
Although these estimates are based on management’s reasonable knowledge of the amount, event or 
actions, actual results ultimately may differ from those estimates. The critical accounting judgements, 
estimates and assumptions that have a significant risk of causing a material adjustment to the carrying 
amounts of assets and liabilities within the next financial year are discussed in note 4 and the following 
accounting policy notes: revenue recognition (2.5), property, plant and equipment (2.7), inventories (2.11) 
including generation development sites (2.11.3) and credit risk (3.1.3). 61
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
2. Summary of Significant Accounting Policies (continued)
2.2  Going concern 
The Group meets its day to day capital requirements through positive cash balances held on deposit 
or through its bank facilities.  The current economic conditions continue to create opportunities and 
uncertainties which can impact the level of demand for the Group’s products and the availability of bank 
finance for the foreseeable future.  The Group’s forecasts and projections, taking account of the possible 
changes in trading performance, show that the Group should be able to operate within the level of its  
current facilities.
After making enquires, the Directors have a reasonable expectation that the Group has adequate resources 
to continue in operational existence for the foreseeable future.  The Group therefore continues to adopt the 
going concern basis in preparing its consolidated financial statements.  Further information on the Group’s 
borrowings can be found in note 23. 
Good Energy’s 4 year bond issued in November 2013, is due to mature in November 2017.  The Company 
has the option to redeem this bond, replace it with another bond or roll on the bond for another 12 months 
(subject to redemption requests by bondholders) and is currently reviewing the most appropriate option. 
As a consequence of the existing bond’s terms ending within the next twelve months, this facility has had to 
be reclassified as a current liability and the balance sheet, as a result, shows a net current liability position 
of (£3.4m) as at 31 December 2016, compared to a net current asset position of £5.8m in 2015. The balance 
sheet is expected to return to a net current asset position for the year ended 31 December 2017.
2.3 Change in accounting policies and disclosures
There have been a number of new standards and interpretations issued in 2016, none of which are yet 
effective.  At this stage, management have not applied these new standards in the preparation of these 
consolidated financial statements.   Management has yet to fully assess the impact of IFRS 9 Financial 
Instruments and IFRS 15 Revenue from Contracts with Customers which are both effective for the Group for 
its 2018 financial statements.
There are no other standards or interpretations that are not yet effective, that are expected to have a material 
effect on the Group’s net assets or results. 
2.4 Basis of consolidation
The Group financial statements incorporate the financial statements of the company and its subsidiaries 
and enterprises controlled by the company (and its subsidiaries) made up to 31 December each year. Control 
is achieved where the company has the power to govern the financial and operating policies of an investee 
enterprise so as to obtain benefits from its activities.
The acquisition of subsidiaries is accounted for using the purchase method. On acquisition, the identifiable 
assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values on the date of 
acquisition.  Consideration payable on acquisition is measured at fair value.
For business combinations made after 1 July 2009, costs directly attributable to the business  
combination are not included in the measurement of cost, but expensed in the income statement in line  
with IFRS 3 (revised).
The results of subsidiaries acquired or disposed of during the year are included in the Consolidated 
Statement of Comprehensive Income from the effective date of acquisition or up to the effective date of 
disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting 
policies used into line with those used by other members of the Group.
Inter-company transactions and balances between Group enterprises are eliminated on consolidation. 62
Notes to the Financial Statements
For the year ended 31 December 2016
2. Summary of Significant Accounting Policies (continued)
2.5 Revenue recognition 
Revenue represents the fair value of the consideration received or receivable for the provision of goods and 
services which fall within the Group’s ordinary activities, excluding transactions with or between subsidiaries. 
All revenue and profit before tax arose within the United Kingdom.
Revenue represents amounts recoverable from customers for supply of electricity, gas, generation of power 
and sale of generation development sites and is measured at the fair value of the consideration received or 
receivable, stated net of discounts, returns and value added taxes. The Group recognises revenue when the 
amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to 
the Group; and when specific criteria have been met for each of the Group’s activities, as described below.
2.5.1 Power supply
Revenue for the supply of electricity is accrued based on industry data flows and national grid data. These 
include an estimate of power used, based on the estimated annual consumption of each customer. Accrued 
income is superseded when customer meter reads are received at which point estimates are adjusted to 
actual usage. 
For gas, revenue is accrued based on information received from the Group’s gas shipper, which includes 
details of all the sites held, their estimated annual quantities of gas used adjusted by a pre-determined 
weather correction factor. This information is subsequently adjusted and invoiced based on customer and 
industry meter reads.
For electricity and gas supply, payment is collected either as a direct debit or paid on receipt of bill in arrears. 
Overdue amounts are reviewed regularly for impairment and provision made as necessary.
2.5.2 Feed-in Tariff (FIT) administration services
Good Energy Group Plc provides FIT administration services to micro-generators who are signed up to  
the FIT scheme. For FIT services, revenue is earned from Ofgem for administering the scheme. For FIT 
services, revenue is recognised in two parts; there is an initial fee paid by Ofgem for taking on a generator, 
and then an ongoing amount that is received annually for provision of FIT services. The initial fee is spread 
over the ‘take on’ period for a new customer and the ongoing fee that is received is spread over the 12 month 
compliance period.
2.5.3 Renewable Obligation Certificates (ROCs) revenue recognition
ROCs are awarded to the Group from Ofgem based on generation of power. These ROCs are sold on receipt 
of certificate from Ofgem allowing transfer of title.
The amount of revenue recognised on sale is in accordance with a contractual agreement where the pricing is 
based on Ofgem’s minimum ROC value (the buy-out) and a prudent estimate of the re-cycle element of the 
final value of a ROC once all energy suppliers have complied or paid the penalty for non-compliance with the 
renewables obligation (the recycle). A final adjustment to ROC revenue and profit is recognised once Ofgem 
have announced the final out-turn ROC price. 63
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
2. Summary of Significant Accounting Policies (continued) 
2.5.4 Generation development site revenue recognition
Revenue is recognised on the completion date of the sale and purchase agreement pertaining to each site 
sold. Where there is contingent revenue included in the sale and purchase agreement, revenue is recognised 
based on management’s assessment of the likelihood of the contingent revenue being received based on 
latest information available.
2.6 Goodwill, intangible assets and amortisation 
Goodwill represents the excess of the cost of acquisition of a business combination over the Group’s share 
of the fair value of identifiable assets, liabilities and contingent liabilities of the business acquired at the 
date of acquisition and is carried as an indefinite life asset. Goodwill is initially recognised at cost. After initial 
recognition, goodwill is measured at cost less any accumulated impairment losses. Gains and losses on 
disposal of a business include the carrying amount of goodwill relating to the business sold.
At the date of acquisition, the amount of goodwill is allocated to cash generating units for the purpose of 
impairment testing and is tested annually for impairment, or more frequently if there is an indication that the 
value of the goodwill may be impaired.
2.6.1 Definite life intangible assets 
Definite life intangible assets comprise software licences and website development costs, which meet the 
criteria of IAS 38 “Intangible assets”.  The software licences and website development costs are carried at 
cost less accumulated amortisation and impairment losses. Cost comprises purchase price from third parties 
as well as directly attributable internally generated development costs where relevant.
2.6.2 Indefinite life intangible assets
The Power Supply Licence is held as an indefinite life intangible asset according to the criteria of IAS 38 
“Intangible assets”.  The Power Supply Licence is carried at cost less accumulated impairment losses. Cost 
comprises purchase price from third parties as well as directly attributable internally generated development 
costs where relevant.
2.6.3 Amortisation
Amortisation on definite life intangible assets is charged to the Consolidated Statement of Comprehensive 
Income on a straight-line basis over the estimated useful lives of intangible assets. The estimated useful 
lives for intangibles with definite lives are as follows:
 Software Licenses    between 3 and 10 years
 Website development costs   between 2 and 5 years 
Amortisation of intangible assets is included in the Consolidated Statement of Comprehensive Income in 
‘administrative expenses’.
Financial Statements 52 – 104 64
Notes to the Financial Statements
For the year ended 31 December 2016
2. Summary of Significant Accounting Policies (continued) 
2.6.4 Impairment
The Directors regularly review intangible assets for impairment and provision is made if necessary. Assets 
with an indefinite useful life, eg goodwill and the Power Supply Licence are not subject to amortisation and 
are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment 
whenever events or changes in circumstance indicate that the carrying amount may not be recoverable. An 
impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable 
amount.  The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For 
the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately 
identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered an 
impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
2.7 Property, plant and equipment 
Property, plant and equipment is stated at cost less depreciation. Cost includes the original purchase price 
of the asset and the costs attributable to bringing the asset to its working condition for its intended use. 
Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual 
value, over their expected useful lives on the following bases: 
 Fixtures, fittings and equipment  between 3 and 5 years
 Leasehold improvements    over the life of the lease
 Generation  assets    between 24 and 29 years
 Assets under construction    not depreciated
The useful economic lives of assets and their residual values are reviewed on an annual basis and revised 
where considered appropriate.  The carrying value of property, plant and equipment is reviewed for 
impairment when events or changes in circumstance indicate that the carrying value may not be recoverable.
2.8 Investments
An undertaking is regarded as a subsidiary undertaking if the company has control over its operating and 
financial policies. Investments in subsidiary undertakings that are directly owned by the company are stated 
at cost less amounts written-off for any permanent diminution in value. 
2.9 Leases
Assets financed by leasing agreements that give rights approximating to ownership (finance leases) are 
capitalised at their fair value and depreciation or amortisation is provided over the lower of the useful life and 
term of the lease. The capital elements of future obligations under finance leases are included as liabilities 
in the Statement of Financial Position and the current year’s interest element, having been allocated to 
financial periods to give a constant periodic rate of charge on the outstanding liability, is charged to the 
Statement of Comprehensive Income.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain 
with the lessor are charged to the Statement of Comprehensive Income on a straight-line basis over the term 
of the lease. 65
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
2. Summary of Significant Accounting Policies (continued) 
2.10 Pensions
The Group operates a defined contribution pension scheme. Under this scheme the Group pays contributions 
to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. 
The Group has no further payment obligations once the contributions have been paid. The contributions are 
recognised as an employee benefit expense when they are due. The pension charge for the year represents 
the amounts payable by the Group in respect of the year.
2.11 Inventories 
2.11.1 Renewable Obligation Certificates (ROCs)
Under the provisions of the Utilities Act 2000, all electricity suppliers are required to procure a set 
percentage of their supplies from accredited renewable electricity generators. This obligation can be fulfilled 
by the purchase and surrender of ROCs originally issued to generators, or by making payments to Ofgem 
who then recycle the payments to purchasers of ROCs. Notwithstanding that Good Energy Limited, a 
subsidiary company, supplies electricity sourced entirely from renewable generation over a 12 month period, 
its percentage obligation to submit ROCs is set by Ofgem.  The cost obligation is recognised as electricity is 
supplied and charged as a cost of sale in the Consolidated Statement of Comprehensive Income. Any gains 
or losses on disposal of ROCs which are in excess of the Group’s compliance obligations are included as an 
adjustment to the compliance cost included within cost of sales. ROCs are valued at the lower of purchase 
cost and estimated realisable value.
2.11.2 Levy Exemption Certificates (LECs)
The removal of Levy Exemption Certificates was announced by the Government in 2015, starting 1 August 
2015.  Excess inventory of LECs had been purchased by the company in the years prior to this date.  The cost 
of this inventory was written back to the income statement in 2015, resulting in a non-recurring credit.  During 
the year inventories were utilised against the cost of Climate Change Levy for business customers, with costs 
charged through the income statement. The inventory balance remaining at the balance sheet date will be 
utilised fully in 2017. LECs are valued at the lower of purchase cost and estimated realisable value.  
2.11.3 Generation development sites
The Group incurs costs in respect of generation development sites to secure development rights and 
planning permission to establish power generation units on a number of different sites. These are recognised 
as inventory at the lower of cost and net realisable value.
2.12 Current and deferred taxation 
The tax credit represents the sum of the tax currently receivable and deferred tax. The tax currently 
receivable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 
Statement of Comprehensive Income because it excludes items of income or expense that are taxable or 
deductible in other years and it further excludes items that are never taxable or deductible. The Group’s 
liability for current tax is calculated by using tax rates that have been enacted or substantively enacted by the 
end of each financial period.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of 
assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation 
of taxable profit, and is accounted for using the Statement of Financial Position liability method. Deferred tax 
liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the 
extent that it is probable that taxable profits will be available against which deductible temporary differences 
Financial Statements 52 – 104 66
Notes to the Financial Statements
For the year ended 31 December 2016
2. Summary of Significant Accounting Policies (continued) 
can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from 
goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities 
in a transaction which affects neither the tax profit nor the accounting profit.  Deferred tax liabilities are 
recognised for taxable temporary differences arising in investments in subsidiaries except where the Group is 
able to control the reversal of the temporary difference and it is probable that the temporary difference will 
not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each financial period and reduced to 
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of 
the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply to the period 
when the asset is realised or the liability is settled. 
Deferred tax is charged or credited in the Statement of Comprehensive Income, except when it relates 
to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. 
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax 
assets against current tax liabilities and when they relate to income taxes levied by the same taxation 
authority, and the Group intends to settle its current tax assets and liabilities on a net basis.
2.13 Available-for-sale financial assets
Equity instruments held by the Group and designated as available-for-sale are carried at fair value, with 
movements in fair value recognised in other comprehensive income. Where fair value cannot be reliably 
measured, the assets are approximated at cost. Cumulative fair value gains or losses on an asset are recycled 
through the income statement when the asset is disposed or impaired. A significant or prolonged decline 
in the fair value  of a security below its cost is considered as an indicator that the securities are impaired. 
Impairments are recognised in the income statement.
2.14 Assets and liabilities classified as held for sale
Assets and liabilities are classified as held for sale when their carrying amount is to be recovered principally 
through a sale transaction and the sale is highly probable. Assets and liabilites classified as held for sale are 
stated at the lower of carrying amount and fair value less costs to sell. They are not depreciated or amortised.
2.15 Financial instruments
The Group uses certain financial instruments in its operating and investing activities that are deemed 
appropriate for its strategy and circumstances.
Financial instruments recognised on the Consolidated Statement of Financial Position include cash and 
cash equivalents, trade receivables, trade payables and borrowings. Financial assets and liabilities are 
recognised on the Consolidated Statement of Financial Position when the company has become a party to 
the contractual provisions of the instrument.
2.15.1 Loans and receivables
The Group’s loans and receivables comprise trade and other receivables and cash and cash equivalents in 
the Consolidated Statement of Financial Position. These assets are non-derivative financial assets with 
fixed or determinable payments that are not quoted in an active market. They arise principally through the 
provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of 
contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly 
attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective 
interest rate method, less provision for impairment. Trade receivables are shown inclusive of unbilled 
amounts to customers and of payments made in advance by customers, reflecting the underlying nature of 
customer account balances. 67
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
2. Summary of Significant Accounting Policies (continued) 
Impairment provisions are recognised when there is objective evidence (such as significant financial 
difficulties on the part of the counter-party or default or significant delay in payment) that the Group will be 
unable to collect all of the amounts due under the terms receivable, the amount of such a provision being 
the difference between the net carrying amount and the present value of the future expected cash flows 
associated with the impaired receivable. For trade receivables, which are reported net, such provisions are 
recorded in a separate allowance account with the loss being recognised within administrative expenses in 
the Consolidated Statement of Comprehensive Income. On confirmation that the trade receivable will not be 
collectable, the gross carrying value of the asset is written off against the associated provision.
Cash and cash equivalents comprise cash on hand and on demand deposits, and other short term, highly 
liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant 
risk of changes in value.
Restricted deposits are held by financing providers to cover debt service and maintenance expenses on 
generation sites to which the funding relates.
Short-term security deposits are held by trading exchanges to cover short term electricity trades.
2.15.2 Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual 
arrangements entered into. An equity instrument is any contract that evidences a residual interest in the 
assets of the Group after deducting all of its liabilities. 
2.15.3 Trade and other payables
Trade payables are obligations to pay for goods or services that have been acquired in the course of ordinary 
business from suppliers.  Accounts payable are classified as current liabilities if payment is due within one 
year or less.  If not, they are presented as non-current liabilities.
Trade payables are recognised initially at fair value and subsequently held at amortised cost.
2.15.4 Borrowings
The Group expenses borrowing costs over the term of the loan facility.  Where borrowing costs are 
attributable to the acquisition, construction or production of a qualifying asset, such costs are capitalised as 
part of the specific asset. Details of the Group’s borrowings are included in note 23. 
2.16 Share based payments
The Group applies IFRS 2 to share based payments. The Group operates a share based payment 
compensation plan, under which the entity grants key employees the option to purchase shares in the 
company at a specified price maintained for a certain duration.
The Group operates an equity-settled, share-based compensation plan, under which the entity receives 
services from employees as consideration for equity instruments (options) of the Group. The fair value of the 
employee services received in exchange for the grant of the options is recognised as an expense. The total 
amount to be expensed is determined by reference to the fair value of the options granted:
•  including any market performance conditions; (for example, an entity’s share price)
•  excluding the impact of any service and non-market performance vesting conditions (for example, 
profitability, sales growth targets and remaining an employee of the entity over a specified time period) and
•  including the impact of any non-vesting conditions (for example, the requirement for employees to save).
Financial Statements 52 – 104 68
Notes to the Financial Statements
For the year ended 31 December 2016
2. Summary of Significant Accounting Policies (continued) 
Non-market performance and service conditions are included in assumptions about the number of options 
that are expected to vest. The total expense is recognised over the vesting period, which is the period over 
which all of the specified vesting conditions are to be satisfied.
At the end of each financial period, the Group revises its estimates of the number of options that are 
expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to 
original estimates, if any, in the Consolidated Statement of Comprehensive Income, with a corresponding 
adjustment to equity.
When the options are exercised, and the company issues new shares to meet that obligation, the proceeds 
received net of any directly attributable transaction costs are credited to share capital (nominal value) and 
share premium.
2.17 Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief 
operating decision maker. The chief operating decision maker has been identified as the Board of Directors. 
The Board of Directors review the Group’s internal reporting in order to assess performance and  
allocate resources. 
2.18 Share capital
Ordinary shares are classified as equity.  Incremental costs directly attributable to the issue of new ordinary 
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
2.19 Finance income
Finance income is received in respect of cash deposits and is recognised using the effective interest method.  
When a loan and receivable is impaired, the Group reduces the carrying amount to its recoverable amount, 
being the estimated future cash flow discounted at the original effective interest rate of the instrument, and 
continues unwinding the discount as finance income.  Finance income on impaired loan and receivables is 
recognised using the original effective interest rates.
2.20 Exceptional items
Exceptional items are disclosed separately in the financial statements where it is necessary to do so to 
provide further understanding of the financial performance of the Group. They are material items of income 
or expense that have been shown separately due to the significance of their nature or amount. 
2.21 Dividend distribution
Dividend distribution to the company’s shareholders is recognised as a liability in the Group’s financial 
statements in the period in which the dividends are approved by the company’s shareholders.  69
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016 
3. Financial and Capital Risk Management
3.1 Financial risk factors 
The Group’s activities expose it to a variety of financial risks: liquidity risk, market risk (including currency 
risk, cash flow and fair value interest rate risk and commodity price risk) and credit risk.  The Group’s overall 
risk management programme focuses on the unpredictability of financial markets and seeks to minimise 
potential adverse effects on the Group’s financial performance.  The Group may use derivative financial 
instruments to hedge certain risk exposures. 
3.1.1 Liquidity risk  
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet cash flow commitments 
associated with financial instruments. The Group has cash resources available to it and prepares, in the 
operating entities of the Group, forecasts for the forthcoming year which indicate that in the Directors’ 
opinion it will have sufficient resources to fund the continuation of trade. 
The Group monitors cash flow forecasts on a ‘rolling forecast’ basis to ensure it has sufficient cash to meet 
operational needs while maintaining enough headroom on its undrawn committed borrowing facilities at all 
times so as not to breach borrowing limits or covenants.
A liquidity analysis of financial instruments based on contractual undiscounted cash flows is provided below:
Parent Company
31 December 2016
Less than  
1 year
Between 
 1 and 2 years
Between  
2 and 5 years
Over 5 years
£000’s £000’s £000’s £000’s
Corporate bond 16,075 - - -
Loan from group companies 7,874 - - -
Trade and other payables 330 - - -
Total 24,279 - - -
Parent Company 
31 December 2015
Less than  
1 year
Between  
1 and 2 years
Between  
2 and 5 years
Over 5 years
£000’s £000’s £000’s £000’s
Corporate bond 1,110 16,075 - -
Loan from group companies 6,389 - - -
Trade and other payables 132 - - -
Total 7,631 16,075 - -
Financial Statements 52 – 104 70
Notes to the Financial Statements
For the year ended 31 December 2016
3. Financial and Capital Risk Management (continued)
Consolidated
31 December 2016
Less than  
1 year
Between 
 1 and 2 years
Between  
2 and 5 years
Over 5 years
£000’s £000’s £000’s £000’s
Borrowings 9,765 4,527 14,171 50,660
Corporate bond 16,075 - - -
Trade and other payables 17,657 - - -
Total 43,497 4,527 14,171 50,660
Consolidated 
31 December 2015
Less than  
1 year
Between  
1 and 2 years
Between  
2 and 5 years
Over 5 years
£000’s £000’s £000’s £000’s
Borrowings 7,702 4,220 13,828 55,311
Corporate bond 1,110 16,075 - -
Trade and other payables 14,514 - - -
Total 23,326 20,295 13,828 55,311
 
3.1.2  Market Risk 
3.1.2a Currency risk 
The Group is exposed to foreign exchange risk arising from the purchase of capital equipment items  
from European countries.  The primary currency exposure is with respect to the Euro.  Management have  
set up a policy, that when it is deemed appropriate, the Group will forward buy euros against major  
contracts to reduce foreign exchange exposure. As at 31 December 2016 no euros (2015: no euros) were 
purchased forward.  
3.1.2b Cash flow and fair value interest rate risk 
The financial risk is the risk to the Group’s earnings that arises from fluctuations in interest rates and the 
degree of volatility of these rates. For short-term bank overdraft facilities, the Group does not use derivative 
instruments to reduce its exposure to interest rate fluctuations as the policy of the Group is not to rely on 
short-term borrowing facilities for any significant duration. The Directors use interest rate swaps if they 
consider their exposure to interest rate risk to be material. For long term borrowings, the Group may use 
interest rate swaps to fix the interest rate payable on these material balances in order to mitigate the risk of 
any fluctuations in interest rates. 
3.1.2c  Commodity price risk 
The Group’s operations results in exposure to fluctuations in energy prices. Management monitors energy 
prices and analyses supply and demand volumes to manage exposure to these risks. The Group typically 
buys power forwards in order to mitigate some of the risk of commodity price fluctuations.
If the wholesale market moves significantly upwards or downwards, the price risk to the Group will depend 
upon a number of factors including the excess or deficiency of power being supplied by renewable power 
purchase contracts in place at the time. The Group may be required to pass on the price risk to customers. 
Retail prices can be amended with 30 days’ advance notification to customers. The Group closely monitors 
movements in the wholesale market and assess trends so it is ready to take necessary action when required.
Vertical integration of the Group helps further mitigate exposure to to changes in power prices.   71
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016   
3. Financial and Capital Risk Management (continued) 
3.1.3  Credit risk  
The Group’s exposure to credit risk arises from its receivables from customers. At 31 December 2016 and 
2015, the Group’s trade and other receivables were classed as due within one year, details of which are 
included in note 18. The Group’s policy is to undertake credit checks where appropriate on new customers 
and to provide for doubtful debts based on estimated irrecoverable amounts determined by reference to 
specific circumstances and past default experience. Credit risk is also in part mitigated by the policy to offer 
direct debit as a preferred method of payment for customers. At the end of the reporting period the Directors 
have provided for specific doubtful debts and believe that there is no further credit risk. Should the level  
of bad debt increase by 0.25 per cent, this would have an impact of £9,829 on the Statement of 
Comprehensive Income.
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions. 
The Directors monitor credit quality of the institutions used when considering which banks and financial 
institutions funds should be placed with.
3.2 Capital risk management  
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going 
concern in order to provide returns to shareholders, and to maintain an optimal capital structure. 
The Group monitors capital on the basis of the gearing ratio calculated as net debt divided by total capital. 
Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the 
Consolidated Statement of Financial Position) less cash and cash equivalents.  T otal capital is calculated as 
‘equity’ as shown in the consolidated statement of financial position plus net debt.  The capital structure of 
the Group is as follows:
Note 2016 2015
£000’s £000’s
Total borrowings 23 61,258 61,537
Less: cash in restricted deposit accounts (2,831) (2,803)
Less: cash and cash equivalents 19 (6,289) (4,751)
Net debt 52,138 53,983
Total equity 21,045 16,943
Total capital 73,183 70,926
Gearing ratio 71.2% 76.1%
  
During 2016, the Group’s strategy, which was unchanged from 2015, was to seek debt funding at appropriate 
margins from lenders against long term power generation assets.  These assets have highly predictable 
revenue streams and are considered stable for long term borrowing.  In future, in order to maintain or adjust 
its capital structure,  the Group may re-structure its debt, issue new shares or sell assets.
The Group’s borrowings are subject to maintaining covenants as defined by the debt funders. Throughout the 
year ended 31 December 2016 the Group complied with all external borrowing covenants and management 
monitors the continued compliance with these covenants on a monthly or quarterly basis.
Financial Statements 52 – 104 72
Notes to the Financial Statements
For the year ended 31 December 2016
3. Financial and Capital Risk Management (continued) 
3.3 Fair value estimation
The table below presents the Group’s financial assets that are measured at fair value, by valuation method at 
31 December 2016.  The different levels have been defined as follows:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
• Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either 
directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2);
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) 
(Level 3);
If one or more of the significant inputs is not based on observable market data, the instrument is included in 
Level 3.  Specific valuation techniques used to value the unlisted securities included the assessment of the 
current status of the project and a review of any changes to circumstances since the initial acquisition  
of shares.
All financial instruments with the exclusion of the amounts below are classified as level 2 per the fair  
value hierarchy
2016 Level 1 Level 2 Level 3 Total
£000’s £000’s £000’s £000’s
Assets
Available for sale financial assets
Unlisted securities - - 500 500
Total assets - - 500 500
2015 Level 1 Level 2 Level 3 Total
£000’s £000’s £000’s £000’s
Assets
Available for sale financial assets
Unlisted securities - - 500 500
Total assets - - 500 500
There were no changes in Level 3 instruments for the year ended 31 December 2016. 73
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
4. Critical Accounting Estimates
In the process of applying the Group’s accounting policies, management has to make judgements  
and estimates that have a significant effect on the amounts recognised in the financial statements.  
These estimates and judgements are evaluated continually and are based on historical experience and  
other factors, including expectations of future events. The most critical of these accounting judgements  
and estimates are detailed below. Given the nature of the estimates and judgements made, unless  
explicitly stated otherwise, it is not appropriate to provide a sensitivity analysis of the judgements and 
estimates noted.
4.1 Revenue recognition
Revenue calculated from energy sales includes an estimate of the value of electricity or gas supplied to 
customers between the date of the last meter reading and the end of the reporting period. This will have 
been estimated by using historical consumption patterns and data available, and takes into consideration 
industry reconciliation processes, upon which the Group takes a prudent position until final reconciliation 
data is available from the industry fourteen months after the supply date.
4.2 Power purchase costs
Power purchase costs can typically take 14 months from the date of supply to be finalised due to the 
processes that the energy market has to complete in order to finalise generation and consumption data for 
any one particular month. Therefore there is an element of power purchase costs that needs to be estimated 
based on a combination of in-house and industry data that is available at any particular point in time.
4.3 Inventories
The Group carries ROCs as stock in its balance sheet. These are valued at the lower of cost or estimated 
realisable value. Gains or losses made on ROCs which are subsequently sold, are only recognised in the 
Statement of Comprehensive Income when they crystallise. 
The final out-turn value of a ROC is only published by Ofgem in October following the compliance year (April 
to March) which may require a final adjustment to gains or losses on the sale or purchase of ROCs previously 
recognised in the Consolidated Statement of Comprehensive Income.
Financial Statements 52 – 104 74
Notes to the Financial Statements
For the year ended 31 December 2016
4. Critical Accounting Estimates (continued) 
4.4 Provisions for bad and doubtful debt
The assessments undertaken in recognising provisions have been made in accordance with IAS 39. A 
provision for impairment of trade receivables is established when there is objective evidence that the 
group will not be able to collect all amounts due according to the original terms of the receivables. 
Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial 
reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered 
indicators that the trade receivable is impaired. 
The amount of any loss is recognised in the income statement within administrative expenses.  
Subsequent recoveries of amounts previously written off are credited against administrative expenses  
in the income statement.
4.5 Recoverability of capitalised generation project costs and generation assets
Generation project costs capitalised in inventory are reviewed by management on a monthly basis. Where 
management deem at the balance sheet date that on the balance of probability, the likely planning outcome 
for a given generation site will prevent it being constructed or sold, a write off provision is made for the full 
amount of the inventory relating to that site after excluding an assessment of recoverable costs. Where 
possible, recoverable costs will be estimated based on known market values.
The carrying value of the generating sites is considered in relation to the value in use and a provision will be 
recognised for any excess.  For the current year no provision was deemed necessary.
5. Segmental Analysis
The chief operating decision-maker has been identified as the Board of Directors (the ‘Board’). The Board 
reviews the Group’s internal reporting in order to assess performance and allocate resources. Management 
has determined the operating segments based on these reports.  The Board considers the business from  
a business class perspective, with each of the main trading subsidiaries accounting for each of the  
business classes. 
The main segments are:-
 •      Supply Companies (including electricity supply, FIT administration and gas supply); 
 •      Electricity Generation Companies (including wind and solar generation companies);
 •      Generation Development (44 early stage development companies)
 •      Holding companies, being the activity of Good Energy Group PLC.
The Board assesses the performance of the operating segments based primarily on summary financial 
information, extracts of which are reproduced below.  An analysis of profit and loss, assets and liabilities and 
additions to non-current asset, by class of business, with a reconciliation of segmental analysis to reported 
results follows:  75
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
5. Segmental Analysis (continued)
Year ended 31 
December 2016
Electricity 
Supply 
FIT 
admin-
istration
Gas 
Supply
Total 
Supply 
Companies
Electricity 
Generation
Generation 
Development
Holding 
Companies/
Consolidation
Adjustments
Total 
£000’s £000’s £000’s £000’s      £000’s £000’s £000’s £000’s
Revenue
Revenue 
from external 
customers 55,324 5,904 23,903 85,131 4,520 786 - 90,437
Inter-segment 
revenue - - - - 3,324 - (3,324) -
Total revenue 55,324 5,904 23,903 85,131 7,844 786 (3,324) 90,437
Expenditure
Cost of sales (40,559) (1,415) (16,269) (58,243) (4,295) (367) - (62,905)
Inter-segment 
cost of sales (3,324) - - (3,324) - - 3,324 -
Gross profit 11,441 4,489 7,634 23,564 3,549 419 - 27,532
Administrative 
expenses (17,080) (357) (666) (1,868) (19,971)
Depreciation & 
amortisation (1,609) - (2) - (1,611)
Operating 
profit/(loss) 4,875 3,192 (249) (1,868) 5,950
Net finance 
income/(costs) 140 (5,352) (339) 1,035 (4,516)
Profit/(loss) 
before tax 5,015 (2,160) (588) (833) 1,434
Segments assets & liabilities
Segment 
assets 45,704 116,337 11,162 (70,270) 102,933
Segment 
liabilities 38,008 116,948 17,205 (90,273) 81,888
Net assets/
(liabilities)
7,696 (611) (6,043) 20,003 21,045
Additions to 
non- current 
assets 2,264 1,120 3,725 387 7,496
 
Financial Statements 52 – 104 76
Notes to the Financial Statements
For the year ended 31 December 2016
5. Segmental Analysis (continued)
Year ended 31 
December 2015
Electricity 
Supply
FIT 
admin-
istration
Gas 
Supply
Total  
Supply 
Companies 
Electricity 
Generation
Generation 
Development
Holding
Companies/
consolidation 
adjustments
Total 
£000’s £000’s £000’s £000’s £000’s £000’s £000’s £000’s
Revenue
Revenue from 
external
customers 40,192 3,902 16,411 60,505 3,576 200 - 64,281
Inter-segment
revenue - - - - 3,882 - (3,882) -
Total Revenue 40,192 3,902 16,411 60,505 7,458 200 (3,882) 64,281
Expenditure
Cost of sales (24,542) (1,655) (12,987) (39,184) (3,440) (358) - (42,982)
Inter-segment 
cost of sales (3,882) - - (3,882) - - 3,882 -
Gross Profit/
(loss) 11,768 2,247 3,424 17,439 4,018 (158) - 21,299
Administrative 
expenses (12,877) (353) (1,448) (1,408) (16,086)
Depreciation & 
amortisation (975) - (3) (1) (979)
Operating profit/
(loss) 3,587 3,665 (1,609) (1,409) 4,234
Net finance
income/(costs) 136 (4,301) (494) 553 (4,106)
Profit/(loss) 
before tax 3,723 (636) (2,103) (856) 128
Segments assets & liabilities
Segment assets 34,628 96,091 6,778 (43,936) 93,561
Segment 
liabilities 29,040 94,239 12,414 (59,075) 76,618
Net assets/
(liabilities) 5,588 1,852 (5,636) 15,139 16,943
Additions to
non- ‐current 
assets 755 18,090 - - 18,845
All turnover arose within the United Kingdom. 
 
Consolidation adjustments relate to inter-company sales of generated electricity and the elimination of inter-
company balances. 77
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
6. Operating Profit and Administrative Expenses
Note 2016 2015
£000’s £000’s
The operating profit is stated after charging:
Depreciation of property, plant and equipment 14 2,809 2,351
Amortisation of intangible assets 15 1,367 705
Operating lease rentals 1,078 676
Auditors’ Remuneration
Audit of parent and consolidated financial statements 28 27
Audit of subsidiaries 98 108
Subtotal (audit) 126 135
Other services - financial statement preparation 15 25
Other services - 34
Tax services 22 60
Subtotal (non-audit) 37 119
The administrative expenses comprise the following:
Staff costs 9,286 7,345
Rent and office costs 4,514 3,573
Marketing costs 1,987 1,776
Professional fees and bank charges 2,383 2,152
Bad Debts 1,801 1,240
Depreciation and amortisation 1,611 979
Total 21,582 17,065
 
7. Profit of the Parent Company
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the 
parent company is not presented as part of these financial statements.  
The parent company’s profit for the financial year was £2,789,472 (2015: profit £1,123,794). 
The profit for the parent company in 2016 included part of the proceeds from the sale of Wrotham Heath 
solar site.  In the segmental analysis 100% of the proceeds from Wrotham Heath  were shown within 
Generation Development reflecting the operational performance of the segment.  
Financial Statements 52 – 104 78
Notes to the Financial Statements
For the year ended 31 December 2016
8. Staff Costs
Staff costs, including Directors’ remuneration, were as follows:
2016 2015
£000’s £000’s
Wages and salaries 10,258 8,741
Social security costs 1,062 866
Share based payments 230 51
Other pension costs 433 343
Total staff costs 11,983 10,001
Capitalised staff costs (677) (729)
Total expensed staff costs 11,306 9,272
 
Details of share based payments can be found in note 27.
The average monthly number of employees, including the Directors, during the year was as follows:
2016 2015
Number Number
Operations 165 135
Business services 154 141
Total management and administration 319 276
9. Directors’ and Key Management Remuneration
Directors’ and Key Management emoluments 2016 2015
£000’s £000’s
Aggregate emoluments 872 922
Contributions to money purchase pension schemes 73 69
 
Key management are considered to be the directors of Good Energy Group PLC and the executive team.  The 
emoluments relating to these teams are included in the table above.
During the year retirement benefits were accruing to 3 Directors of the Group (2015: 2) in respect of money 
purchase pension schemes.
In respect of the highest paid Director, the Group paid remuneration of £235,951 (2015: £222,740), including 
contributions to the money purchase pension scheme of £25,000 (2015: £23,868).
Individual remuneration for the Directors is set by the Remuneration Committee of the Board which consists 
entirely of Non-Executive Directors. Appropriate keyman insurance policies are in place.
During the year, no share options were exercised by Directors or key management (2015: nil).  The aggregate 
amount of gains made by directors or key management on the exercise of share options was nil (2015: nil).
Details of Directors’ emoluments are given in the Directors’ Remuneration Report on page 40. 79
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016 
10. Finance Income
2016 2015
£000’s £000’s
Bank and other interest receivables 18 23
11. Finance Costs
2016 2015
£000’s £000’s
On bank loans and overdrafts 3,072 3,192
On corporate bond 1,113 1,110
Other interest payable 13 1
Amortisation of debt issue costs 336 327
Total finance costs 4,534 4,630
Less: amounts capitalised on qualifying assets - (501)
Total 4,534 4,129
12. T axation
2016 2015
£000’s £000’
Analysis of tax charge in year
Current tax (see note below)
Current Tax - 165
Adjustments in respect of prior years (164) (243)
Total current tax (164) (78)
Deferred tax
Origination and reversal of temporary differences 217 (132)
Adjustments in respect of prior years (2) 533
Total deferred tax (see note 22) 215 401
Tax on profit on ordinary activities 51 323
Adjustments in respect of prior years’ deferred tax amounts are from updated assumptions used in the 
treatment of Group relieved losses and capital allowances.
Financial Statements 52 – 104 80
Notes to the Financial Statements
For the year ended 31 December 2016 
12. T axation (continued) 
Factors affecting the tax credit for the year
The tax assessed for the year is lower (2015: higher) than the standard weighted average rate of corporation 
tax in the UK of 20.00% (2015: 20.25%). The differences are explained as follows:
2016 2015
£000’s £000’s
Profit before tax 1,434 128
Profit before tax multiplied by the weighted average rate of 
Corporation Tax in the UK of 20.00% (2015: 20.25%) 287 26
Tax effects of:
Expenses not deductible for tax purposes 42 (9)
Non-taxable gain on sale of investment (73) -
Effects of changes in tax rate (39) 16
Prior year adjustment - current tax (164) (243)
Prior year adjustment - deferred tax (2) 533
Total tax charge for year 51 323
 
Factors that may affect future tax charges
Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2015 (on 26 
October 2015) and Finance Bill 2016 (on 7 September 2016). These include reductions to the main rate to 
reduce the rates to 19% from 1 April 2017 and to 17% from 1 April 2020. Deferred taxes at the balance sheet 
date have been measured using these enacted tax rates and reflected in these financial statements.
Corporation tax payable/(recoverable) as per Statement of Financial Position 
Parent Company Consolidated
2016 2015 2016 2015
£000’s £000’s £000’s £000’s
UK Corporation Tax on profits for the year - - (167) (126) 81
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016 
13. Earnings/(loss) Per Ordinary Share
Basic
Basic earnings/(loss) per share is calculated by dividing the profit/(loss) attributable to owners of the 
company by the weighted average number of ordinary shares during the year after excluding 495,739 (2015: 
521,989) shares held by Clarke Willmott Trust Corporation Limited in trust for the Good Energy Group 
Employee Benefit Trust.
Consolidated
2016 2015
Profit/(loss) attributable to owners of the Company (£000’s) 1,383 (195)
Basic weighted average number of ordinary shares (000’s) 15,239 14,455
Basic earnings/(loss) per share 9.1p (1.4p)
Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares to 
assume conversion of all potentially dilutive ordinary shares.  Potentially dilutive ordinary shares arise 
from awards made under the Group’s share-based incentive plans.  Where the vesting of these awards is 
contingent on satisfying a service or performance condition, the number of potentially dilutive ordinary 
shares is calculated based on the status of the condition at the end of the period.  Potentially dilutive 
ordinary shares are actually dilutive only when the average market price of the Company’s ordinary shares 
during the period exceeds their exercise price (options) or issue price (other awards).  The greater any such 
excess, the greater the dilutive effect. The average market price of the Company’s ordinary shares during the 
year was 223p (2015: 222p).  The dilutive effect of share-based incentives was 563,595 (2015: nil shares).
Consolidated
2016 2015
Profit/(loss) attributable to owners of the Company (£000’s) 1,383 (195)
Weighted average number of diluted ordinary shares (000’s) 15,802 14,455
Diluted earnings/(loss) per share 8.8p (1.4p)
Financial Statements 52 – 104 82
Notes to the Financial Statements
For the year ended 31 December 2016 
14.  Property, Plant and Equipment
Consolidated
Year ended 31 
December 2016
Leasehold 
improvements
Furniture,
fittings & 
equipment
Generation 
assets
Assets under
construction
Total
£000’s £000’s £000’s £000’s £000’s
Cost
At 1 January 2016 (per AR 2015) 429 875 65,247 - 66,551
Assets held for sale - - (5,308) - (5,308)
Additions 81 118 4,848 180 5,227
Disposals - (5) (55) - (60)
At 31 December 2016 510 988 64,732 180 66,410
Accumulated depreciation
At 1 January 2016 (per AR 2015) (274) (625) (4,668) - (5,567)
Assets held for sale - - 213 - 213
Charge for the year (60) (206) (2,601) - (2,867)
Disposals - 5 53 - 58
At 31 December 2016 (334) (826) (7,003) - (8,163)
Net book value
At 1 January 2016 (per AR 2015) 155 250 60,579 - 60,984
At 31 December 2016 176 162 57,729 180 58,247 83
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016 
14.  Property, Plant and Equipment (continued)
Consolidated
Year ended 31 December 
2015
Leasehold 
improvements
Furniture, 
fittings & 
equipment
Generation 
assets
Assets under
construction
Total
£000’s £000’s £000’s £000’s £000’s
Cost
At 1 January 2015 247 1,193 35,239 11,659 48,338
Transfer of Assets under 
construction to Generation 
assets
- - 11,659 (11,659) -
Additions 182 75 18,349 - 18,606
Disposals - (393) - - (393)
At 31 December 2015 429 875 65,247 - 66,551
Accumulated depreciation
At 1 January 2015 (156) (861) (2,592) - (3,609)
Charge for the year (118) (157) (2,076) - (2,351)
Disposals - 393 - - 393
At 31 December 2015 (274) (625) (4,668) - (5,567)
Net book value
At 1 January 2015 91 332 32,647 11,659 44,729
At 31 December 2015 155 250 60,579 - 60,984
The Generation assets relate to electricity generating assets (wind turbines, solar panels and ancillaries).  
Those assets held within the company’s subsidiaries: Good Energy Delabole Wind Farm Limited; Good 
Energy Hampole Wind Farm Limited; Good Energy Woolbridge Solar Park Limited; Good Energy Creathorne 
Solar Park Limited, Good Energy Rook Wood Solar Park Limited, Good Energy Carloggas Solar Park Limited, 
Good Energy Lower End Solar Park Limited and Good Energy Cross Roads Solar Park Limited have been 
pledged as security against bank and other loan liabilities.  There is no charge against the assets held within 
Good Energy Oaklands Plantation Solar Park Limited.
Financial Statements 52 – 104 84
Notes to the Financial Statements
For the year ended 31 December 2016
15.  Intangible Assets
Consolidated
Year ended 31 
December 2016
Power 
supply 
Licences
Software 
Licences
Website 
development 
costs
Goodwill Assets under 
the course of 
development
Total
£000’s £000’s £000’s £000’s £000’s £000’s
Cost
At 1 January 2016 180 3,351 9 1,446 - 4,986
Additions - 111 - - 1,740 1,851
At 31 December 2016 180 3,462 9 1,446 1,740 6,837
Accumulated 
amortisation
At 1 January 2016 - (1,660) (9) - - (1,669)
Charge for the year - (1,367) - - - (1,367)
At 31 December 2016 - (3,027) (9) - - (3,036)
Net book value
At 1 January 2016 180 1,691 - 1,446 - 3,317
At 31 December 2016 180 435 - 1,446 1,740 3,801
Consolidated
Year ended 31 
December 2015
Power 
supply
Licences
 Software
Licences 
Website 
development 
costs 
Goodwill Assets under 
the course of 
development
Total 
£000’s £000’s £000’s £000’s £000s £000’s
Cost
At 1 January 2015 180 3,868 132 1,446 - 5,626
Additions - 492 - - - 492
Disposals - (1,009) (123) - - (1,132)
At 31 December 2015 180 3,351 9 1,446 - 4,986
Accumulated 
amortisation
At 1 January 2015 - (1,964) (132) - - (2,096)
Charge for the year - (705) - - - (705)
Disposals - 1,009 123 - - 1,132
At 31 December 2015 - (1,660) (9) - - (1,669)
Net book value
At 1 January 2015 180 1,904 - 1,446 - 3,530
At 31 December 2015 180 1,691 - 1,446 - 3,317 85
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016 
15.  Intangible Assets (continued)
Assets under the course of development relate to the implementation of a new billing system and the launch 
of our new website.
All amortisation amounts are included within administration expenses.
Goodwill of £1,446,453 (2015: £1,446,453) comprises £1,060,996 (2015: £1,060,996) arising from the 
original acquisition of Good Energy Limited, and £385,457 (2015: £385,457) from the original acquisition of 
the wind farm at Delabole. 
The carrying values of indefinite life assets included in intangible assets are: goodwill of £1,446,453  
(2015: £1,446,453) and Power Supply Licence of £180,000 (2015: £180,000) which relates to the subsidiary, 
Good Energy Limited. In arriving at the conclusion that these assets have an indefinite life, management 
considers the fact that the Group is a profitable business and expects to hold and support these assets for an 
indefinite period.
An impairment review is undertaken annually or more frequently, using value in use calculations, based  
on pre tax cash flow projections over a five year period approved by management and discounted at 
appropriate rates.
The result of this review was that no impairment is required in respect of the carrying values of the indefinite 
life assets. The key assumptions for value in use are as follows: 
Value in use assumptions 2016 2015
Gross margin* 20%-30% 20%-30%
Growth rate beyond five year plan 2% 2%
Pre tax discount rate 11% 11%
 
*annual margins have been modelled in the five year cashflow at varying levels.
Sensitivity analysis has been performed on the impairment review and it has been illustrated that a discount 
rate of 400% would still not indicate a potential impairment. Accordingly, the Directors consider there to be 
significant headroom.
Financial Statements 52 – 104 86
Notes to the Financial Statements 
For the year ended 31 December 2016
16a.  Investments and Subsidiaries
Parent Company
Year ended 31 December 2016
Shares in Group
undertakings
Loans to Group 
undertakings Total
£000’s £000’s £000’s
Cost and net book value
At 1 January 2016 4,646 30,560 35,206
Additions - 17,464 17,464
Repayments - (10,414) (10,414)
At 31 December 2016 4,646 37,610 42,256
Parent Company 
Year ended 31 December 2015
Shares in Group 
undertakings
Loans to Group 
undertakings Total
£000’s £000’s £000’s
Cost and Net book value
At 1 January 2015 4,646 25,295 29,941
Additions - 56,555 56,555
Provisions - (6,000) (6,000)
Repayments - (45,290) (45,290)
At 31 December 2015 4,646 30,560 35,206
A provision for £6,000,000 was recorded against the intercompany receivable loan for Good Energy 
Generation Limited in 2015. No additional provision has been recognised in 2016. This has no impact on the 
consolidated results of the Group. 87
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016 
16a.  Investments and Subsidiaries (continued)
The Group had the following subsidiaries at 31 December 2016 (all of which have the same reigistered 
address as Good Energy Group PLC, which can be found within the Directors and Corporate Resources 
section on the final page of this report):
Name
 
Country of 
incorporation and 
place of business
Proportion of ordinary 
shares directly held 
by Parent
Nature of business
Good Energy Limited UK 100%
supply of renewably 
sourced electricity and FIT 
administration
Good Energy Gas Limited UK 100% supply of gas
Good Energy Generation Limited UK 100%
an investor in potential new 
generation sites
Good Energy Generation Holding 
Company No.1 Limited UK 100%
holding company for a 
generating asset sub group
Good Energy Generation Assets  
No.1 Limited* UK 100%
holding company for 
generating assets 
subsidiaries
Good Energy Hampole Windfarm 
Limited* UK 100%
generation of electric power 
by wind turbine machinery
Good Energy Woolbridge Solar 
Park Limited* UK 100%
generation of electric power 
by solar panels
Good Energy Creathorne Solar 
Park Limited* UK 100%
generation of electric power 
by solar panels
Good Energy Rook Wood Solar 
Park Limited* UK 100%
generation of electric power 
by solar panels
Good Energy Carloggas Solar 
Park Limited* UK 100%
generation of electric power 
by solar panels
Good Energy Lower End Solar 
Park Limited* UK 100%
generation of electric power 
by solar panels
Good Energy Cross Roads 
Plantation Solar Park Limited* UK 100%
generation of electric power 
by solar panels
Good Energy Delabole Wind 
Farm Limited UK 100%
generation of electric power 
by wind turbine machinery
Good Energy Cedar Windfarm 
Limited UK 85%
development of an energy 
generating asset
Financial Statements 52 – 104 88
Good Energy Lanyon Solar Park 
Limited UK 100%
development of an energy 
generating asset
Good Energy Mapperton Solar 
Park Limited UK 100%
development of an energy 
generating asset
Good Energy Brynwhilach Solar 
Park Limited UK 100%
development of an energy 
generating asset
Good Energy Oaklands 
Plantation Solar Park Limited UK 100%
development of an energy 
generating asset
Good Energy Tidal Limited UK 100% investment holding company
Good Energy Development (No.1) 
Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.2) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.3) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.4) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.5) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.6) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.7) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.8) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.9) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.10) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.12) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.14) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.15) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.16) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.17) Limited UK 100%
development of an energy 
generating asset
Llangyfelach Community Solar 
Farm C.I.C UK 100%
development of an energy 
generating asset
Worminster Down Somerset 
Community Solar Farm C.I.C UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.20) Limited UK 100%
development of an energy 
generating asset
Notes to the Financial Statements
For the year ended 31 December 2016
16a.  Investments and Subsidiaries (continued)
  89
Strategic Report Directors’ Report Financial Statements
Good Energy Development 
(No.21) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.22) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.23) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.24) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.25) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.26) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.27) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.28) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.29) Limited UK 100%
development of an energy 
generating asset
Good Energy Development 
(No.30) Limited UK 100%
development of an energy 
generating asset
Homegrown Energy Limited UK 100% dormant 
* Entities indirectly owned by Good Energy Group PLC.
The subsidiaries above have all been included in the consolidated financial statements.  
16b.  Available-for-sale Financial Assets
Consolidated
Year ended 31 December 2016
Available-for-sale 
financial assets
£000’s
Cost and Net book value
At 1 January 2016 500
Additions -
At 31 December 2016 500
Available-for-sale financial assets comprise £500,000 (2015: £500,000) of unlisted securities denominated 
in sterling.
Notes to the Financial Statements
For the year ended 31 December 2016
16a.  Investments and Subsidiaries (continued)
 
Financial Statements 52 – 104 90
Notes to the Financial Statements
For the year ended 31 December 2016
17.  Inventories
Parent Company Consolidated
2016 2015 2016 2015
£000’s £000’s £000’s £000’s
Renewable Obligation Certificates - - 2,530 2,426
Levy Exemption Certificates - - 328 977
Generation development sites - - 6,941 6,079
Total - - 9,799 9,482
 
As at 31 December 2016 there were Renewable Obligation Certificates (ROCs) of £771,559 (2015: £537,265) 
included in the above amount that were unissued for generation that had already taken place and therefore 
these ROCs were not available for sale before the end of the financial year. 
As at 31 December 2016 there were Levy Exemption Certificates (LECs) of £327,852 (2015: 977,001) included 
in the above amount.  
Costs shown in respect of Generation development sites are for on-going projects to secure development 
rights and planning permission to establish power generation units on a number of different sites.  The 
cost of inventories recognised as an expense and included in ‘cost of sales’ amounted to £267,386 (2015: 
£147,416).  At 31 December 2016, an impairment of £201,457 (2015: £1,041,077) had been made against these 
sites resulting in an expense of nil (2015: net credit of £298,939 which is included in ‘cost of sales’).
18.  Trade and Other Receivables
Parent Company Consolidated
2016 2015 2016 2015
£000’s £000’s £000’s £000’s
Gross trade receivables - 16 17,571 11,444
Provision for impairment/non-payment of trade receivables - - (3,932) (2,131)
Net trade receivables - 16 13,639 9,313
Prepayments 58 6 552 1,610
Other taxation 16 - 2,013 675
Total 74 22 16,204 11,598
 
The Group has a provision in place to set aside an allowance to cover potential impairment and non-payment 
of trade receivables. Those debts which are neither past due nor impaired are considered to be good and are 
expected to be recoverable. Some trade receivables are with customers who do not have externally available 
credit ratings. 91
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016 
18.  Trade and Other Receivables (continued)
The movements on the provision for impairment and non-payment of trade receivables is shown below:
Movement on the provision for impairment and non-payment of 
trade receivables
2016 2015
£000’s £000’s
Balance at 1 January 2,131 1,424
Increase in allowance for impairment/non-payment 1,801 1,135
Impairment/non-payment losses recognised - (428)
Balance at 31 December 3,932 2,131
Ageing analysis of trade receivables past due but not impaired 2016 2015
£000’s £000’s
Current and not past due 10,031 6,636
1 to 2 months 1,485 71
2 to 3 months 965 793
Over 3 months 1,158 1,813
Total 13,639 9,313
Trade receivables past due but not impaired relate entirely to a number of independent customers for whom 
there is no recent history of default.
Trade receivables are all financial assets designated as loans and receivables.
19.  Cash and Cash Equivalents
Parent Company Consolidated
2016 2015 2016 2015
£000’s £000’s £000’s £000’s
Cash at bank and in hand 266 234 2,296 1,956
Short-term bank deposits - - 2,879 1,871
Security deposits - - 1,114 924
Total 266 234 6,289 4,751
 
As part of the bank loan agreements, the lenders require a minimum cash balance to be held in separate 
reserve accounts. At the end of the year the total amount was £2,456,426 (2015: £1,722,653), which is 
included in short-term bank deposits.  Included within cash at bank and in hand for both the parent company 
and the consolidated position is £162,676 (2015: £139,680) in respect of monies held by the Good Energy 
Employee Benefits Trust.  The credit quality of cash and cash equivalents can be assessed by reference to 
external credit ratings as follows:-
Financial Statements 52 – 104 92
Notes to the Financial Statements
For the year ended 31 December 2016
19.  Cash and Cash Equivalents (continued)
Parent Company Consolidated
2016 2015 2016 2015
£000’s £000’s £000’s £000’s
AA- 163 140 163 140
A+ - - 4,447 -
A - - 450 3,568
A- - - - 450
B 103 94 1,229 593
Total 266 234 6,289 4,751
  
Cash and cash equivalents are all financial assets designated as loans and receivables.
20. Assets and liabilities classified as held for sale 
Consolidated 
2016
£000’s
Property, plant and equipment 5,095
Total assets 5,095
Deferred taxation (10)
Total liabilities (10)
Carrying value 5,085
The figures in the above table refer to the sale by Good Energy Group PLC of 100% of its shareholding in 
Good Energy Oaklands Planatation Solar Park (031) Limited to a third party. Further detail can be seen in 
note 31. 93
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016 
21. Share Capital and Share Premium
Number of 
authorised 
shares
Parent Company & Consolidated
Number of 
shares issued 
and fully paid 
Share  
Capital 
Share 
Premium 
Account Total
£000’s £000’s £000’s
At 1 January 2015 20,000,000 14,667,896 733 9,077 9,810
Proceeds from shares issued - 302,784 15 709 724
At 31 December 2015 20,000,000 14,970,680 748 9,786 10,534
Proceeds from shares issued - 1,514,023 77 2,760 2.837
At 31 December 2016 20,000,000 16,484,703 825 12,546 13,371
In 2016, the company issued 1,514,023 ordinary shares of 5p each for total consideration of £2,836,748 
resulting in a share premium of £2,760,047.  This included the issue of 5,950 (2015: 291,137) shares to the 
EBT and 2 scrip dividend issues in lieu of full year and interim dividend cash payments (10,763 and 7,361 
shares respectively) (2015: 7,566 and 4,081 shares respectively).    
Clarke Willmott Trust Corporation Limited holds in trust  495,739 (2015: 521,989) ordinary shares of the 
company for the present and the future beneficiaries of the Good Energy Group Employee Share Option 
Scheme.  These are deducted from equity as shown in the Consolidated and Parent Company Statements of 
Changes in Equity. During the year the Trust disposed of 20,000 (2015: 197,000) shares as a result of options 
exercised and acquired nil (2015: 493,137) shares.
The Directors recommend a final dividend of 2.3p per share (2015: 2.3p) subject to shareholder approval at 
the Company’s AGM.
Financial Statements 52 – 104 94
Notes to the Financial Statements
For the year ended 31 December 2016 
22.  Deferred T axation
The provision for deferred taxation is made up as follows:
Consolidated 2016 2015
£000’s £000’s
At 1 January 567 15
Charged to the Consolidated Statement of Comprehensive Income 215 401
Charged to equity (98) 151
At 31 December 684 567
2016 2015
£000’s £000’s
Deferred tax asset to be recovered after more than 12 months (722) (142)
Deferred tax asset to be recovered within 12 months (236) (186)
Sub total-deferred tax assets (958) (328)
Deferred tax liabilities to be settled after more than 12 months 1,642 895
Deferred tax liabilities to be settled within 12 months - -
Sub total- deferred tax liabilities 1,642 895
Total net deferred tax liabilities 684 567
Deferred tax assets 2016 2015
£000’s £000’s
On short term timing differences 236 186
Losses 722 142
Total 958 328
Deferred tax liabilities 2016 2015
£000’s £000’s
On accelerated capital allowances 1,642 895
Accelerated 
capital 
allowances
Short-term 
timing 
differences Losses Total
Deferred tax assets/(liabilities) £000’s £000’s £000’s £000’s
At 1 January 2015 (678) 363 300 (15)
(Charged) to income statement (217) (26) (158) (401)
(Charged) to equity - (151) - (151)
At 31 December 2015 (895) 186 142 (567)
Credited/(charged) to the income statement (747) (48) 580 (215)
Credited to equity - 98 - 98
At 31 December 2016 (1,642) 236 722 (684) 95
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
23.  Borrowings and Other Financial Liabilities
Parent Company Consolidated
2016 2015 2016 2015
£000’s £000’s £000’s £000’s
Current:
Bank and other borrowings 125 122 5,891 5,626
Bond 15,090 - 15,090 -
Loans from Group companies 7,874 6,389 - -
Total 23,089 6,511 20,981 5,626
Parent Company Consolidated
2016 2015 2016 2015
£000’s £000’s £000’s £000’s
Non current:
Bank and other borrowings 211 - 40,277 41,265
Bond - 14,646 - 14,646
Total 211 14,646 40,277 55,911
 
The Group has undrawn bank overdraft facilities of £6,757,144 (2015 : £5,000,000) as at 31 December 
2016 and undrawn revolving credit facilities of £822,140 (2015 : £2,882,140.  These facilities are secured by 
guarantees from Good Energy Limited, Good Energy Gas Limited and other group entities.
At 31 December 2016, £7,279,171 (2015: £7,681,950) of the bank loans relate to the company’s subsidiary, 
Good Energy Delabole Wind Farm Limited and is secured by a mortgage debenture on that company dated 
16 January 2010 incorporating a fixed and floating charge over all current and future assets of that subsidiary. 
The facility will be repaid from future cash flows arising from the wind farm of this company. On 7 January 
2011, the loan balance was transferred from the build phase to the repayment phase, with repayments of 
capital and interest scheduled bi-annually over 15 years.
As part of the facility Good Energy Delabole Wind Farm Limited entered into a floating rate to fixed rate 
interest swap. They were entered into at the same time and in contemplation of one another, have the same 
counter-party, relate to the same risk and amortise concurrently. Given these circumstances and the fact that 
there is no economic need or substantive business purpose for structuring the transactions separately that 
could not also have been accomplished in a single transaction these instruments are treated as one fixed rate 
loan instrument in accordance with IAS 39. The fixed rate interest is payable at an annual rate of 7.15%. 
At 31 December 2016,  £37,399,386 inclusive of £627,985 of accrued interest (2015: £37,959,777 inclusive of 
£659,777 of accrued interest) of the bank loans relate to the company’s subsidiary, Good Energy Generation 
Assets No. 1 Limited.  The loan is secured by a mortgage debenture on that company and its subsidiaries 
dated 17 December 2014 incorporating charges over the shares of that company and those of its subsidiaries.  
The facility will be repaid from future cash flows arising from the subsidiaries of that company with 
repayments of capital and interest scheduled quarterly over a period of 18 years commencing 17 December 
2014. Interest is payable at 6.85% and the outstanding principal balance is partially exposed if annual RPI 
inflation exceeds 3%.  Costs incurred in raising finance were £2,754,299 (2015: £2,627,109) and are being 
amortised over the life of the loan in accordance with IAS39.  
Financial Statements 52 – 104 96
Notes to the Financial Statements
For the year ended 31 December 2016
23.  Borrowings and Other Financial Liabilities (continued) 
On 2 October 2013 Good Energy Group launched a corporate bond which closed on 24 October 2013 with 
subscriptions having reached the maximum target of £15,000,000. The bond was issued to bondholders on 
22 November 2013 with interest scheduled bi-annually. The coupon rate is 7.25% or 7.50% for bondholders 
that are customers of the Group. Capital repayment of the bond is payable following notice being received 
from the bondholder no earlier than 4 years from inception. The total costs of issue were £770,879 which are 
being amortised over the life of the bond.  As at 31 December 2016 the amortisation recognised in ‘finance 
costs’ totalled £191,248 (2015: £165,982). 
 
Parent Company Inter-company
loan Bond
Finance 
Lease Total
£000’s £000’s £000’s £000’s
31 December 2016
Due less than 1 year 7,874 15,090 125 23,089
Due between 1 and 5 years - - 211 211
Total 7,874 15,090 336 23,300
 
Parent Company Inter-company
loan Bond
Finance 
Lease Total
£000’s £000’s £000’s £000’s
31 December 2015
Due less than 1 year 6,389 122 - 6,511
Due between 1 and 5 years - 14,646 - 14,646
Total 6,389 14,768 - 21,157 97
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
23.  Borrowings and Other Financial Liabilities (continued) 
Consolidated
Bank and 
other 
borrowings Bond Total
£000’s £000’s £000’s
31 December 2016
Due less than 1 year 5,753 15,090 20,843
Due between 1 and 5 years 7,204 - 7,204
Due more than 5 years 33,211 - 33,211
Total 46,168 15,090 61,258
Consolidated
Bank and 
other 
borrowings Bond Total
£000’s £000’s £000’s
31 December 2015
Due less than 1 year 5,626 - 5,626
Due between 1 and 5 years 8,802 14,646 23,448
Due more than 5 years 32,463 - 32,463
Total 46,891 14,646 61,537
The fair values of borrowings have been calculated taking into account the interest rate risk inherent in the 
loans and the bond.  The fair value estimates and carrying values of borrowings (excluding issue costs) in 
place at 31 December 2016 are: 
2016 2016 2015 2015
Fair value
Carrying 
value Fair value
Carrying 
value
£000s £000s £000s £000s
Good Energy Delabole Wind farm Ltd 7,351 7,279 7,759 7,682
Good Energy Generation Assets No. 1 Limited 37,839 37,399 37,553 37,300
Corporate bond 15,099 15,090 15,114 14,965
 
Borrowings are designated as other financial liabilities held at amortised cost.
Financial Statements 52 – 104 98
Notes to the Financial Statements
For the year ended 31 December 2016 
24.  Trade and Other Payables
Parent Company Consolidated
2016 2015 2016 2015
£000’s £000’s £000’s £000’s
Trade payables 96 68 4,934 3,439
Accruals and deferred income 234 64 14,104 10,655
Social security and other taxes - - 898 351
Other payables - - - 69
Total 330 132 19,936 14,514
Trade payables, accruals and other payables are designated as other financial liabilities held at  
amortised cost.
25.  Dividends
Amounts recognised as distributions to shareholders in the year (based on the number of shares in issue at the 
record date): 
Consolidated
2016 2015
£000’s £000’s
Final dividend prior year of 2.30p per share (2015: 2.30p) 368 344
Interim dividend current year of 1.00p per share (2015: 1.00p) 140 150
Sub-total 508 494
Dividends waived (17) (16)
Total 491 478
 
Dividends waived represent dividends that would accrue on shares held by the Good Energy Group Employee 
Benefits Trust were they not held by the Trust.
A final dividend of 2.3p per share was proposed on 20 March 2017, subject to shareholder approval at the 
company’s AGM.
Of the total dividend distributed for the year, £42,288 (2015: £27,009) was paid in the form of scrip dividends 
with the balance of £448,792 (2015: £451,998) settled in cash. 99
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
26.  Cash Generated from Operations
Reconciliation of net income to net cash provided by operating activities:
Parent Company Consolidated
2016 2015 2016 2015
£000’s £000’s £000’s £000’s
Profit before income tax 2,966 1,144 1,434 128
Adjustments for:
Depreciation - - 2,808 2,351
Amortisation - 1 1,368 705
Share based payments - - 230 51
Provision against investments in and loans to 
subsidiaries - 6,000 - -
Dividend income from subsidiaries (3,800) (8,000) - -
Finance (income)/costs -  net (1,036) (552) 4,516 4,106
Changes in working capital (excluding the effects 
of acquisition and exchange differences on 
consolidation)
Inventories - - (517) (3,872)
Trade and other receivables (52)  165 (4,605) (1,318)
Trade and other payables 197 38 5,422 (561)
Cash (outflow)/inflow from operations (1,725)  (1,204) 10,656 1,590
Financial Statements 52 – 104 100
Notes to the Financial Statements
For the year ended 31 December 2016  
27.  Share Based Payments
In order to retain the services of key employees and to incentivise their performance, the Parent Company 
operates the Good Energy Employee Share Option Scheme under which certain employees of the Group are 
granted options to acquire Ordinary 5p Shares at future dates. Costs in respect of these options of £229,921 
(2015: £51,428 are recognised in the Consolidated Statement of Comprehensive Income. As at 31 December 
2016, the following options had been issued:
Number of options
Weighted average
exercise price
Total exercise
consideration
2016 2015 2016 2015 2016 2015
(Number) (Number) (£) (£) £000’s £000’s
Outstanding at beginning of year 1,540,070 1,494,898 1.28 1.03 1,964 1,536
Granted 270,001 552,172 2.26 1.85 610 1,022
Exercised (20,000) (197,000) 1.25 1.01 (25) (199)
Cancelled/surrendered (55,000) (310,000) 1.25 1.25 (69) (388)
Outstanding at the end of year 1,735,071 1,540,070 1.51 1.28 2,480 1,971
In order to partially fulfil the options granted,  495,739 (2015: 521,989) shares representing approximately 
29% (2015: 42%) of the options outstanding have already been issued and held by Clarke Willmott Trust 
Corporation Limited as the Trustee of the Good Energy Group Employee Benefits Trust. Dividends have been 
waived on these shares.
The options expire at various dates up to September 2029.  Share options outstanding at the end of the year 
have the following expiry date and exercise price:
Grant-vest Expiry year Exercise price in £ per
share options
Share options 
(thousands)
2016 2015
2004-2007 2017 0.75 35 35
2012-2015 2025 0.50 189 189
2012-2015 2025 1.15 179 179
2013-2016 2026 1.25 259 289
2015-2018 2028 0 102 102
2015-2018 2028 2.25 100 100
2015-2018 2028 2.27 150 150
2015-2018 2028 2.29 200 200
2016-2019 2029 0.05 270 -
1,484 1,244
 
The weighted average fair value of options granted during the year determined using the Black-Scholes 
valuation model was £2.11 per option. The significant inputs into the model were weighted average share 
price of £2.26 at the grant date, exercise price shown above, volatility of 13%, dividend yield of 3%, an 
expected option life of three years and an annual risk-free interest rate of 0.3%. The volatility measured at 
the standard deviation of continuously compounded share returns is based on statistical analysis of daily 
share prices over the last year. See note 8 for the total expense recognised in the income statement for share 
options granted to Directors and employees. 101
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
28.  Pensions
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately 
from those of the Group in an independently administered fund. The pension cost represents contributions 
payable by the Group to the fund and amounted to £433,320 (2015: £343,294).
Contributions totalling £51,823 (2015: £42,060) were payable to the fund at the end of the financial year and 
are included in other payables.
The Group has no further pension liability either realised or contingent and in line with the Group’s 
environmental position all employer contributions are invested within a suitable fund.
29.  Commitments
29.1 Operating Lease Commitments
The future aggregate minimum lease payments are as follows:
Land and Buildings
2016 2015
£000’s £000’s
Leases as lessee:
Less than one year 724 341
Between one and five years 2,296 1,184
More than five years 6,410 6,583
Total 9,430 8,108
Other operating leases
2016 2015
£000’s £000’s
Leases as lessee:
Less than one year 8 6
Between one and five years 8 12
More than five years - -
Total 16 18
 
29.2 Capital Commitments
At 31 December 2016, the total capital commitments amount is £5,702,212 (2015: £418,134).  Of this 
£4,910,212 (2015: £418,134) related to contracts agreed on solar generation projects. 
The figure for solar generation projects represents the maximum liability assuming sites continue  
in development.   
Financial Statements 52 – 104 102
Notes to the Financial Statements
For the year ended 31 December 2016
30.  Related Party Transactions
The Group maintains processes to identify related party transactions which include ensuring that all 
meetings of the Board of Directors begin with a declaration of interest in the matters arising. When related 
party transactions are identified, steps are taken to ensure they are transparent and contracted on an arm’s 
length basis. Dependent on the perceived risk and materiality of the transaction, these steps may include 
forming an independent sub-committee of the board to consider the transaction and requesting that the 
Group’s nominated advisor reviews the contractual terms. 
The company’s significant subsidiary undertakings, including the name and proportion of ownership interest 
for each, are disclosed in note 16. Transactions between subsidiaries and between the company and its 
subsidiaries are eliminated on consolidation. During the year the company had inter-company balances with 
its subsidiaries. Interest is charged on these balances at either 2.5% above the Bank of England base rate 
or at 8.85%. The higher rate is charged on inter-company loans drawing on the GCP loan which carries an 
external rate of interest of 6.85%. Details of the amounts outstanding and received during the year on inter-
company loans are contained in note 16a.
In January 2010 Good Energy Delabole Wind Farm Limited, a subsidiary company, entered into an agreement 
with Windelectric Management Limited, a company in which Martin Edwards (a director of the company) has 
a controlling interest, to provide site management for the new wind farm at Delabole. The amount payable 
each year is £75,000 index linked. The amount payable under this agreement during the current year was 
£84,481 (2015: £83,647). No amounts were outstanding at the end of the financial year (2015: £nil).
In January 2010, Good Energy Delabole Wind Farm Limited entered into a 25 year lease with Martin Edwards 
and other parties, in respect of the land which some of the new turbines occupy. For the first 10 years of 
operation the rent will be the higher of an annual base rent of £50,240 or 3.25% of gross income from the 
wind farm and from the 10th anniversary onwards it will be 4.5% of gross income from the wind farm.
The amount payable under this agreement during the current year was £57,915 (2015: £76,649). Of these 
figures no amounts were outstanding at the end of the financial year (2015: £nil).
In 2012, the Group entered in to an agreement in connection with generation development activities 
with Shire Oak Energy Limited, a company wholly owned by Mark Shorrock who is the husband of Juliet 
Davenport. During 2016, a payment of nil (2015: £500,000) was made to Shire Oak under the terms of 
the contract.  A final payment, capped at £150,000 is due on the successful energisation of one remaining 
solar farm under the agreement. In April 2014, Good Energy Tidal Lagoon Limited, a subsidiary of the Group, 
made a £500,000 investment into Tidal Lagoon (Swansea Bay) plc.  Mark Shorrock (the husband of Juliet 
Davenport) is employed as its Chief Executive. The investment is structured with an option to purchase up to 
10% of the power output from the Tidal Lagoon project at market rates once completed.   103
Strategic Report Directors’ Report Financial Statements
Notes to the Financial Statements
For the year ended 31 December 2016
31.  Subsequent Events
On 3rd January 2017, Good Energy Group PLC sold 100% of its shareholding in Good Energy Oaklands 
Plantation Solar Park (031) Limited to a third party. The assets and liabilities of Good Energy Oaklands 
Plantation Solar Park (031) Limited have been presented as held for sale in note 20.
32.  Subsidiary Undertakings Exempt From Audit
Good Energy Group PLC has provided the necessary parental guarantees under section 479A of the 
Companies Act 2006, to enable the following companies exemption from audit:
33. Generation assets – technical data
Wind farms
Hampole, South Yorkshire 
Turbine manufacturer: Senvion 
No. of turbines: 4 
Installed capacity: 8.2MW 
Turbine power output: 2.05 MW
Delabole, Cornwall 
Turbine manufacturer: Enercon 
No. of turbines: 4 
Installed capacity: 9.2MW 
Turbine power output: 2.3 MW
Solar farms 
 
Woolbridge, Dorset 
Solar modules: Yingli 
Nominal capacity DC: 4,996 kWp
Creathorne, Cornwall 
Solar modules: Yingli 
Nominal capacity DC: 1,841 kWp
Solar farms (continued) 
 
Rook Wood, Wiltshire 
Solar modules: ReneSola 
Nominal capacity DC: 4,981 kWp
Lower End, Wiltshire 
Solar modules: Jinko Solar 
Nominal capacity DC: 4,999 kWp
Crossroads, Dorset 
Solar modules: Jinko Solar 
Nominal capacity DC: 4,999 kWp
Carloggas, Cornwall 
Solar modules:  ReneSola 
Nominal capacity DC: 8,304 kWp
 Oaklands, Dorset 
Solar modules: REC 
Nominal capacity DC: 4,992 kWp
Good Energy Lanyon Solar Park (011) Limited 
Llangyfelach Community Solar Farm C.I.C. 
Worminster Down Somerset Community  
Solar Farm C.I.C. 
Good Energy Development (No.1) Limited 
Good Energy Development (No.3) Limited 
Good Energy Development (No.4) Limited 
Good Energy Development (No.5) Limited 
Good Energy Development (No.6) Limited 
Good Energy Development (No.8) Limited 
Good Energy Development (No.9) Limited 
Good Energy Development (No.10) Limited 
Good Energy Development (No.12) Limited 
Good Energy Development (No.14) Limited 
Good Energy Development (No.15) Limited 
Good Energy Development (No.16) Limited 
Good Energy Development (No.17) Limited 
Good Energy Development (No.20) Limited 
Good Energy Development (No.21) Limited 
Good Energy Development (No.22) Limited 
Good Energy Development (No. 24) Limited 
Good Energy Development (No.25) Limited 
Good Energy Development (No.26) Limited 
Good Energy Development (No.27) Limited 
Good Energy Development (No.28) Limited 
Good Energy Development (No.29) Limited 
Good Energy Development (No.30) Limited
Financial Statements 52 – 104 104
Directors and Corporate Resources
Directors  John Maltby (Non-Executive Chairman) 
Juliet Davenport (Chief Executive) 
Denise Cockrem (Chief Financial Officer)
David Brooks       
Richard Squires (Non-Executive Director) 
Martin Edwards (Non-Executive Director)
Francesca Ecsery (Non-Executive Director)
 Emma Tinker (Non-Executive Director)
Company Secretary Stephen Rosser 
and Registered Office Monkton Reach 
Monkton Hill, Chippenham 
Wiltshire SN15 1EE
Company Number  04000623
Principal place of business Monkton Reach 
Monkton Hill, Chippenham 
Wiltshire SN15 1EE
Independent Auditors PricewaterhouseCoopers LLP 
2 Glass Wharf 
Bristol BS2 0FR
Financial Advisors Arden Partners plc 
125 Old Broad Street 
London, EC2N 1AR
Bankers Lloyds Bank 
PO Box 112, Canons House, Canons Way 
Bristol BS99 7LB
The Co-operative Bank PLC 
PO Box 101, 1 Balloon Street 
Manchester M60 4EP
Legal Advisors Norton Rose LLP 
3 More London, Riverside 
London, SE1 2AQ
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Apple Colour and Leap are both Good Energy customers. Annual Report &  
Financial Statements 2016
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