Good Energy Group (GOOD) — Interim Results to 30 June 2023

0:01 Good morning, ladies and gentlemen. Welcome to the GOOD ENERGY GROUP PLC interim results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time via the q and a tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so, and these will be available via your Investor Meet company dashboard.

0:32 Before we begin, I would like to submit the following poll. I would now like to hand you over to CEO, Nigel Pocklington. Good morning, sir. Good morning and thank you very much, Jake, and good morning to everybody on the call. I'm Nigel Pocklington, as you've just heard, GOOD ENERGY's Chief Executive, and I'm joined by Rupert Sanderson, our Chief Financial Officer. We have a short presentation, so no more than about 20 slides in total, to take you through the strategic and financial progress of GOOD ENERGY during the first six months of the year. Just to give you a sense for what you are about to hear, so after a brief overview from me, I shall ask Rupert to take everybody through the financials for the first six months, and then I will give an update on our progress in terms of the transformation of GOOD ENERGY away from generation and supply into an energy services business, and then there'll be time for questions at the end of the presentation.

1:32 And by way of an overview, I really wanted to leave the investor audience with four headline points. And those are that we are and have clear evidence that we are delivering on our strategy. And so, one of the things you'll hear from me is the numbers of thousands of customers who are now consuming newer energy services propositions from GOOD ENERGY, be they small scale generators or electric vehicle drivers or

2:04 installing heat pumps and solar panels. And it is not just that we have seen progress in terms of scaling up those propositions we'll talk about, but also that we are beginning to innovate after a pretty flat period in the energy market because of the energy crisis, so we are about to launch a tariff for electric vehicle drivers. We will be launching flexibility services over the winter period. We have launched new services for small scale generators over the last few months. We have moved into installation and we'll update you on progress there and also our ambition to further grow that footprint and we have had a financially speaking very strong start to the year and we have been reiterating the point that the Board is both delighted with progress and happy and confident to reiterate our full year guidance and Rupert will take you through that. So I think there's been a very significant first half of the year for GOOD ENERGY, both in terms of delivery of our strategy and the financial strength of the company. And I'm going to hand over to to take you through the financial side of the first half.

3:14 Thank you Nigel. Good morning everybody. Before I jump into the movements within half one specifically, just wanted to outline the sort of overall P and L shape for 2023, which is definitely a more extreme one than we have seen in the past, which would have given the effect of the hedging strategy within a very sharply moving commodity market. So half one has been very strong and that's from the benefit of hedging, so the PPA agreements that we signed with our generators, ahead of time into a rising commodity market during 2022. And the reverse will be the case in the second half of twenty twenty two as those contracted agreements with the PPA generators continue for the balance of this year but are now at a level which is above the current market price. So quite it an extreme shape that we'll see in the year's performance and we've done that because we've looked at the year as a whole really to avoid much more extreme swings in pricing that we would otherwise have been making to our domestic and commercial variable tariff customers. So that just gives a bit of context to the numbers that we're going to see in respect of half one. Just

4:43 in terms of the specifics of half one, we've seen a really strong increase in revenue, which is really driven by the underlying wholesale cost movements that we have seen. But as we talked about before, the cost of sales, so the actual costs of that commodity are lagging the increase in revenue and you'll start to see that catch up in the second half of the year. So we will see a much more modest increase in revenue, if any increase in revenue at all in the second half of the year, but you'll continue to see the cost of sales grow in that second half of the year. So again, the sort of outline of the two halves of the year becoming clear. In terms of administration costs, the underlying costs of the majority of our business have remained relatively flat, but I'll call out three main drivers that have actually increased the reported costs substantially.

5:40 The first is we have the first six months of inclusion of our investment in our works business, our heat pump business, which we acquired in December 2022. That is predominantly a staff based business and the costs of supporting that operation are included within administration costs for the first time. ECL is our expected credit loss or bad debt provision and that substantially follows the changes in revenue that we've seen over the course of the first half of the year and we incurred some one off regulatory costs which we highlighted at the time of the prelims back in March and April. So it's been a very strong first half profit performance but we would expect the second half of the year to be a single period loss status.

6:32 But as Nigel said, we continue to trade in line with our expectations and are confident in our full year guidance. I won't highlight too much here because we've talked about the major movements in terms of P and L drivers, but the one thing I will call out is we had a small reduction in volume over the course of the year in terms of the impact on our profitability.

6:56 There's two things moving there. The first is that during the really high price periods of gas and electricity costs at the start of the year, our consumers both domestic and smaller businesses did reduce their consumption. It was also relatively mild terms of the overall winter. We also continue to be very selective on the customers that we acquire and renew within the commercial sector. We have seen some segments that alongside other consumers, both domestic and business, where the high price point of energy has become a particular challenge and we are cautious in terms of ensuring that we are maintaining a quality over quantity approach in terms of the customers in those segments.

7:45 Then if I flick on to cash, so we had a very strong cash generative period. It substantially followed the movement in the P and L, the movement in the profitability. So we would expect some of that positive cash generated from operations to reverse in the second half of the year. We deliberately maintain a really strong cash position within the business and that's really for twofold. The first is we understand and we continue to manage the working capital and short term risk demands within our business, and we clearly maintain cash to support those ongoing commitments.

8:31 And there were some additional commitments in respect of credit balances and the renewable obligation certificate management within the energy industry as a whole, which will require us to ring fence a small amount of cash going forward and that's directed by our regulator. But we have invested in the first half of the year. We bought Wessex Eco a solar installer to domestic and commercial customers in June of this year. And we continue to make capital available for potential future acquisitions in the broader energy services space. This is just really a bit of a look back over the course of the last couple of years in terms of some of the actions we've taken to manage within the very volatile commodity markets, I'd really probably just highlight two things.

9:29 The first is, as usual, we have approached the winter with a prudent approach to our hedging strategy. Winter starts from a technical perspective on the October 1. We are now 80% sorry, we're over 90% hedged for the whole of the winter period on power and gas. So that is the period from October through to the end of March. The second thing I'll highlight is that the counterparty trading environment continues to improve a little. It is considerably better than it was in 2022, where I think a very significant number of market participants found that environment very challenging. So does continue to improve, but it isn't like the market still of 2019 and 2020, which had been the one that we'd operated in for a number of years before. So we continue to be very active in terms of how we interact with our trading, interact with our PPA generators and run the business across the supply side.

10:38 And then finally, just two points on capital allocation. We have got a very strong balance sheet. We have a significant amount of net cash within the business, and we will continue to look for opportunities in investment where the right opportunities arise. The other thing I'd call out is we have made, again, a relatively significant increase in our dividend, our interim dividend from £0.75 to £00 which is obviously a significant percentage increase. It remains though the smallest demand on our capital in terms of the potential growth that we are looking for, but I hope it's a welcome increase for a number of our investors who are on the call today and others.

11:33 With that, Nigel, I'll hand back. Thank you very much Rupert. So hopefully some clarity on the pattern of the year there and the general financial health of the company. I'm going to mirror that by talking a bit around how we are progressing through our strategy and our transformation of GOOD ENERGY business towards green energy supply and services. A good place to start, I think, is with this schematic. So, if you've been following us for a while, will have seen that about eighteen months ago we clarified that our ambition was to help a million homes and businesses to green their energy and transport use by 2025, and we saw that as being very much kind of consistent with GOOD ENERGY's founding mission, the idea of powering a cleaner and greener world, and also our company's long standing interest in decentralised energy generation, but also one that moved the company on from owning generation assets, which brought with them quite a considerable amount of debt and didn't cover like the energy consumption of the business, but actually helped us touch more people than ever before and build both a business that delivers on its mission, but also delivers a better business for investors.

12:52 So what are we building? Well, that's where the schematic comes in. We've used it once before, but it's worth reminding everybody. In many ways, the energy company of the future will be one which serves customers in these ways. So as we green transport, an electric vehicle is often the first thing that customers will acquire, and we are active in that marketplace, mostly through ZapMap, where we offer services to help people plan and pay for their journeys. But we will be offering once again tariffs aimed at electric vehicle drivers. I'll touch on that in a few moments. If you own an EV, you are seven times more likely to be interested in installing solar panels, for the obvious reason that you've become a very heavy user of electricity. And we are now very active players, as we always have been, in the solar and microgeneration worlds.

13:42 We have the capability to install solar panels for the first time and that's going well. More importantly at the moment anyway, we have the ability to offer products and services that help people to make the most of their solar generation and both in terms of our services to feed in tariff customers and also to newer export customers, we now offer some of, if not the leading market rates and tariffs and services available. I'll touch on what those are in a short while. The electrification of heat is another big part of The UK's decarbonisation story. We acquired a heat pump installation business at the end of last year, and we've now fully branded and integrated it as GOOD ENERGY works. I can get a sense for where that is going.

14:28 And then the whole picture I think is brought together increasingly by the use of technology, either to automate cost savings to make decisions as to when to store and when to export power, for example, or to allow people to take part in flexibility services. We've got some of the elements in place here we are, for example, installers of the Tesla Powerwall products and the technology that goes with that, and this winter we will be trialling flexibility for the first time. So, we are piecing together what is a forward looking energy services company, which offers customers I think a better product and proposition. And the first half of this year, summarized on the left of the slide there, is one I will argue is we've seen considerable progress along this journey in forests. So we have rolled out and scaled new solar services, we're offering new tariffs, we've acquired an installer and we're looking to acquire further installers, and ZapMap, the app we've backed for electric vehicle drivers is growing pleasingly as well.

15:35 I want to belabor this point actually, which is really to stress why are we doing this? Well, think it's in keeping with our mission decentralised energy, greening The UK but from an investor point of view, it is we think taking us to a better place. Energy services businesses are ones facing into growing markets for structural reasons, and ones which offer reasonably attractive margins, and certainly compared with pure energy supply are relatively low and they're working capital intensive. The energy supply market in and of itself is not an attractive place to build a business from an investor point of view, because it's a slow growth market with a regulator who demands relatively low EBITDA margins and high levels of working capital for the trading counterparties that Rupert talked about there. So, we are not purely an energy supply business, we are focusing on growing our services capabilities because we think that is a better business for investors and frankly it's a better business for consumers as well, and we move away from a world where energy is a utility, a commodity, where people evaluate it purely who's the cheapest and can I switch to being an ongoing service where we're finding that power from is important, but also the services we offer to enable people to use it in an intelligent way and save themselves money as well as reduce their carbon footprint becomes more important?

17:02 So this is why we are making this switch. So let's start with, you know, what is that supply business? And the pattern for each of these slides is almost for me to describe on the left where we've got to now and where we're going to on the right. So, we have a relatively small energy supply business, got about 90,000 meters on it, split 10,000 in business customers and the rest in domestic customers. We tend to serve customers who are more green minded, so they're

17:33 from the 20% of The UK population for whom environmental considerations are more important in their purchase decisions, and we're serving businesses who are either green focused in terms of their proposition or keen to report on their carbon footprint and their reduction of their carbon footprint by working with a supplier like us. The supply business has been relatively stable for us over the last two years through the energy crisis. If we've seen a reduction anywhere, it's been a slight reduction in volumes of consumption and also some of the larger business customers we've seen a reduction in their consumption as well. We are not necessarily focused on keeping all of those larger business like customers into the future if they can't also at some point consume energy services from us.

18:19 We have I think a very clear sense of focus almost our absolute sharp point of where we're focused is on consumers who want to both import and export. So our best products, cheapest tariffs, the ones that will save the most money are for people who are on both supply and exports for us. We're also increasingly focusing on consumers who are keen to use different type of use tariffs for example, or to participate in a flexibility trial with the National Grid through to the end of the year. But our focus is definitely on green minded consumers, and particularly consumers who import as well as export with us. And this is a business which is underpinned with good systems and practices.

19:06 So we were the first company to license Kraken, which is Optimus Energy's customer service platform. We have about 50% now of our supply business on smart meters, which is the key enabling technology for a lot of new propositions. And along with Octopus, we are the only energy supplier in The UK who can tick up into the five star Trustpilot rating category. We're just oscillating between four point five and five stars as they are at the moment. But we have clear data to show that we're offering a good level of customer service. Where is this going to? I've obviously been pretty direct in my remarks about the energy supply business. We do think that energy is a one strand of a broader service proposition. In the future, it's likely that several of our customers will have the sort of profile that drawn out in schematic there on the chart, where sometimes they're exporting energy because they've got too much, sometimes they're looking to import it, they're looking to use products at different times of day, they're looking to energy, and we are trying to build towards a future where we can have the services and the technology that help people to manage their import and their export and their consumption through that kind of day pattern. We've got some of the elements coming together already, that's what we're trying to get to the business to go for.

20:25 So, that is supply, let's talk about those electric vehicle drivers in more detail. So, about three years ago we'd begun to invest in ZapMap and we'd taken what was a business founded by real early adopter pioneers and helped them begin to commercialise ZapMap, and it is making great progress. So here is the first of two slides on ZapMap. We retain, or ZapMap retains, its very high level of penetration of the electric vehicle market. So, is a strength as a platform is that most EV drivers use it frankly, and that is without any substantive investment in terms of marketing or customer acquisition. And even though new and competitive offerings are coming to the marketplace, at least doing some of what ZapMap does, it retains that very high market share of EV drivers.

21:13 Some of the statistics in terms of audience and user growth are on the right hand side there, which I won't belabor, but it is seeing the fast levels of growth you would expect to see given the level of take up of electric vehicles as a technology. So ZAP's market position appears to be pretty secure. What's happened and where is it going?

21:33 Well ZapMap has a new look and feel, which is more than just aesthetics. Usability is an important consideration, I think, in growing any sort of digital platform. And two important elements of it is building a business out. One is Spark, so that's an API, a feed of data, And to remind ourselves, data is really the underpinning of the ZapMap offer, which other parties can use to integrate with their services. So FleetCor, for example, who invest with us in ZapMap, power their product for fleet electric vehicle drivers through this. And then lastly, we are growing a very fast growing revenue line from supplying data back to the world of charge point operators, the development of vehicle licensing, consultancies and banks, all of whom want an accurate picture of our electric vehicle driving and charging.

22:21 ZapMap can provide that. Where does this go to, or what is the ambition here? Well the app itself, which is powering those subscriptions and charging media revenues, we are continuing to grow in The UK and have an ambition to begin to grow internationally. We do see considerable growth potential from the B2B services side of ZapMap, so that's branded ZapMap Spark as you'll see there, and this will all culminate in a second fundraise for ZAP MAP to conclude next year, we aim, which will raise further money for that international expansion. ZAP MAP is continuing to make good progress.

23:05 I want to touch on what we do for solar generators next. We should remember this is in many ways the roots of GOOD ENERGY's business. Juliet set the company up with a view to help people be their own power stations, to use one of the phrases that she used at the time, and it was instrumental in creating the Feed in Tariff scheme. So what have we done so far this year for the solar generator community? We have launched smart export for feed in tariff customers. The marketing material for that is we've captured some of that on the right hand side of the screen, but what it really does is take smart meter data to pay people on what they've actually exported rather than a deemed or assumed amount for their export. And the evidence so far from about 2,000 early customers on the product is that it increases their earnings by about 20%, given the export patterns we are seeing.

23:59 We have rolled that out to 44,000 customers by the midpoint of the year, and our ambition is to get to 75,000 feed and tariff customers by the end of the year. We also began the year launching a beta trial, a treat at the time called Power for GOOD, for exporters who were not qualified to join the Feed in Tariff scheme, which is now closed. So this in some ways is our equivalent of the Smart Export Guarantee schemes, although we don't actually in that because we're not a big enough supplier, but this is export rates for newer export customers. We launched at 10pkWh, it's now scaling as Solar Savings, that's the name of our product, and that is paying 15pkWh for people who are also on supply with us. Actually we'll be offering 20p a kilowatt hour, which is the market leading flat rate for export for people who actually install through GOOD ENERGY.

24:52 So where is this getting us? Well, we have, I think, a better proposition for micro generators, and we have a better business. So for the first time those feed in tariff customers are included in our tradable power position, if you like, so we're actually buying their energy properly and feeding it to our customers, gives us an efficiency in that sense. It reduces some of our network costs marginally as well, which bolster our gross margin. So it's giving us a better business and we think a better proposition for solar generators and will be well over 75,000 customers on these new service products by the end of the year. We shall then move on to talk about installation, which is the other part of our proposition for solar customers. So first a market update.

25:39 So we touched on this when we bought Wessex Energy. The market for solar installation has seen very strong growth over the last year or so, so more than doubled into 2021 into 2022. Some of that for regrettable reasons has obviously been driven by high power prices. We will see that rate, we think, grow at about 18% this year and continue at a strong rate with the rest of the year. Heat pumps are somewhat lagging. So heat pumps, who I think are held back by it being a high consideration purchase, it's quite expensive, there's not much financing available for them yet, government schemes are quite complex, planning permission is often required and that slows things down. We're not seeing the same level of growth from heat. We're seeing about a 7% growth in heat pumps, we think, this year.

26:27 So where are we and what are we doing in terms of installation? So we are trying to scale this business through acquisitions, through using some of the cash we have on the balance sheet to build up this capability. We are seeing good progress in terms of solar. We've only owned West sixty Eco for a couple of months, but it is performing along the lines we would have hoped and is providing a very high quality of service for our customers. We're seeing a very different outturn to heat pumps to when we'd acquired our heat pump business. If you might remember, if you follow the company, we set up quite an aggressive plan and an earn out for the team there to try and scale that business. In fact, the heat pump market is not supporting that level of growth. We have restructured the business considerably and integrated much more fully into GOOD ENERGY than we had perhaps thought. So, we're now comfortable with the shape of that heat pump business and we think we'll get about 100 installations out of it this year.

27:21 And we are offering better tariffs, almost unique tariffs for people who take up some of those installation services. What's our ambition? Well, we want to try and invest behind the Wessex Eco Energy to double their size and scale to the back end of next year. That's the yellow box or the yellow area on the map of The UK there, which they will cover. And we are meeting other installation companies in other parts of the country to try and expand that footprint, all of which is aimed at giving us a roughly £4,000,000 energy services driven sort of earnings position by the end of twenty twenty five, much of that is driven by the solar market. So, in conclusion, I think what we're saying is that the schematic, the vision of a future green energy company is becoming reality and the first six months of this year have shown some considerable progress for us. So, we are playing now in most of those quarters.

28:19 We have obviously a market leading position for electric vehicle drivers with ZAPMAP. In October, we will launch a competitive electric vehicle tariff through GOOD ENERGY as well. We are major players in the solar market, both in terms of the propositions we have for those customers and also the capability to install that technology in the first place, and we're looking for further growth there. We are heat pump installers, we are doing a kind of clearly understood and high quality job for sort of larger domestic customers with that, and as that market scales we will be able to scale with it. And we are beginning to use technology, not just through ZantMap, but in other ways to help people consume clean power in a more flexible environment. So we will be offering a trial a flexibility trial to our customers through this winter, which will reward people for turning down when the grid is strained, and similarly for using power at off peak times.

29:21 Technology that makes that easier, which is coming on stream all the time, is an important part of the future of an energy company. So, I think it's been a very strong first half of the year for us. We've seen that some of our new products and services are beginning to operate at meaningful scale. We are installing and looking to increase the scale of our installation business. We've got some interesting trials new to launch, and ZAP MAP is going well and facing into the future. And so after a difficult couple of years in many ways in the energy market, I think GOOD ENERGY is very well placed now to begin to continue to grow as the nature of what we think of an energy company changes. Nigel, Rupert, that's Graham. Thank you very much indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions just by using the Q and A tab that's situated on the top right hand corner of your screen. But just while the team take a few moments to review those questions that were submitted already, I would like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard.

30:28 Rupert, Nigel, as you can see, we have received a number of questions throughout your presentation this morning, and thank you to all of those on the call for taking the time to submit their questions. But guys, if I may just hand back to you just to read out those questions and give your responses where it's appropriate to do so, and then I'll pick up from you at the end. Thank you. So, the first question which is can I make clear the priorities of the business? And the question is correct. You know, our focus has changed since the company was founded. We are... Just need to make one change here. Excuse me, I'm just dealing with the technology in the room. So, the priority of the business is to build an energy services and supply company where supply is a component of that, but we want to help people to adapt, adopt rather and consume green energy services with

31:25 it. And that is why we are investing behind the services side of the business. A pure play supply business, as I touched on in the presentation, would be a very poor place for both investment and frankly for customers. That's a bigger topic about energy regulation in The UK perhaps, but now our focus is very clearly on products and services that help people generate and consume green power. And that is a very different type of business. It's a transformation of the business from where it began. But as I've talked about, and I firmly believe and I know the team do as well, it's very consistent with the underlying founding principle of the company, which is that we're helping to power a cleaner, greener world and that we are helping to put consumption and generation into the hands of consumers themselves.

32:16 The next question has obviously a degree of frustration in the phrasing of it, so why would GOOD ENERGY not support their mission to supply renewable energy with the rising time of use tariff? Is it still an ill informed, shortsighted, supposedly penitentiary bidding system? So, I will answer this very directly. So, we signed off an electric vehicle tariff, which is time of use based yesterday. It will launch in October. It will have, certainly for the overnight, the cheap consumption side of it, a energy rate with it, which is very competitive with anybody in the market, be they renewable backed or not. We have held out of this market over the last couple of years for couple of reasons. One, in the face of the energy crisis, it was imprudent to have products that launched, you know, that offered, that would potentially

33:15 bring in very different patterns of energy consumption, because we hadn't hedged for the, you know, very heavy use overnight, for example, and the market was particularly spiky. You risked being stuck without energy in your hedge position and having to buy in a very short term market, which would have been extremely expensive. And we, along with many energy suppliers, pulled our electric vehicle tariffs during that period. We have been slower to relaunch it than I would have liked because GOOD ENERGY has a derogation, as the question refers to, from the price cap, but the specific language of that derogation was purely for our standard burial tariff. And we've had to work with a regulator to clarify that the variants of the standard variable tariff are accessible under that regulation. I make no apology for taking the time to work with them on that. Ofgem are under a lot of pressure and they are passing that pressure on often to energy suppliers.

34:13 In fact, managing the regulator was a key part of our risk management framework and we needed to make sure that there was a good degree of understanding in Ofgem as to what we were doing. So we're not launching as a fixed tariff, which is what we did before. We are launching as a variable of our standard variable tariff, and there'll be information on that in the coming days and weeks. I completely buy and understand what you're making around a flexible grid. A lot of our investment is trying to champion flexibility in terms of energy use as being both a green and an economically sensible thing to do. Mark A, I'm just maybe just to hear from you Rupert, do we think that the... So, yeah, I can read at this time. So great progress. Why do you think the company's share price is so undervalued and what can you do to address this to better reflect the good work being achieved?

35:06 So thank you very much, Mark. I would echo that. I think we are very pleased with the progress we've made in the first half of the year. I think we said in the prelims results that we do believe that shares are undervalued. The position is relatively similar to where we were in March and April in terms of the cash that we have, the net cash we have on the balance sheet and its percentage of what the actual share price is. I think that Nigel has laid out pretty clearly the things that we have been progressing and they are quite substantial across different areas over the first half of the year.

35:52 We are substantially moving forward on the provision of services to our generator customers, and we are progressing substantially in terms of the ability for us to roll out on a more regional basis our installation capability. So I think that we will just continue to demonstrate those proof points, to scale the proof points and to show the contribution from those proof points and then I think it will be reflected within the share price as we go forward. I

36:29 would echo that. I mean, obviously many people on the call will be investors themselves. It's been a difficult period for UK equities, particularly UK smaller equities, sort of flow of funds out of it, and to get the re rate that I would argue we deserve now because of the changing nature of the business, we're just going to need to sort of hammer home those proof points really and that's what we will be doing in terms of our presentations and investor relations from here. Martin asks us, Can we talk through our hedging process? Which again is probably one for you to take, Richard. Yes, so thank you Martin. Without going into the real nuts and bolts of this, we buy our power from renewable generators across The UK, and we buy those under what we call power purchase agreements.

37:18 Those agreements are typically between six and eighteen months. They probably mostly average at twelve, and we buy those on a forward basis for periods in the future. So we will be buying now for next summer. Back in 2022 we would have been buying for 2023. So it's typically somewhere between three and nine months ahead of that particular delivery period

37:48 We use the trading counterparties more so on the gas side because there isn't the same structure of independent generators or certainly to a substantial extent as there is in electricity. So we use the trading counterparties more on the gas side and to do what we call shape and balance the portfolio. So we will be buying PPAs, we will be trying to match those with our import demand, our customer demand and we will be using a combination of those PPAs and trading counterparties to keep it in balance and to keep it within our risk management limits. Thank you Rupert. Peter asks what plans we have to market our energy to a wider audience, which is a good question because frankly, for the last eighteen months, we haven't been doing much in the way of marketing because the energy markets have been sort of frozen, if you like, partly from the regulator's design.

38:44 So we have two or three things in mind here. We have made an effort through the first half of year, and particularly in where our pricing is now, to give our marketing team a set of tariffs which will sell our business better if you like. So we are looking to be particularly competitive for people who've got import and export, for people who drive electric vehicles, and those are tariffs that will stand up quite well in the marketplace, especially when you then add in the fact that they are genuinely green ones, and we can then go back and market that through some of our usual channels. We're also doing some highly targeted marketing for the first time of some of

39:21 our newer services, so installation of solar and heat pumps. I think one of the key things about the marketing world, course, the last ten years is you can target down to postcode and house size levels. So we've got a heat pump campaign launching quite soon, which obviously mirrors the footprint of where we can install and the types of homes you might want to adopt that sort of technology. So we're beginning to do some marketing again, as we think we've got marketable propositions that will sell well, and that's in contrast with the last eighteen months or so. Mark asks about Eke Tristi, who are a major shareholder in GOOD ENERGY, with whom we had a hostile takeover bid process a couple of years ago. And so I would acknowledge a question mark, but it's a sort of unanswerable one really, except to reassure all shareholders that we have high standards of corporate governance, GOOD ENERGY, a very highly qualified and independent board of directors, and we take decisions on these matters in the interests of all of our shareholders as we did a couple of years ago.

40:26 Beyond that, I wouldn't be able to comment. Claire asked about KPIs, which is a good question, which I think I would say I think they need to change because the nature of the business is changing. Here we are saying we're building an energy services business, is going to be focused much more on longer relationships with customers, customers taking more than one product from us, customers perhaps using energy in a more flexible way, and our KPIs need to adapt for that. So one of the things we'll be doing when we give our preliminary full year results presentation is launching some new KPIs I think to help investors track that, which is let things bed in a bit more to see that, but I think you'll hear us talking a lot more around customer retention, lifetime value, number of products people are taking, as opposed to the sort of straight P and L type reporting that we're giving at the moment.

41:16 Roger, any more details please of the EV time of use tariff? Good to see it returning. Well thank you, and again I'm sorry it's taken a bit of time to get this back. So we signed off the pricing yesterday, I think it looked competitive with what we could see in the marketplace. So, you know, sort of cheaper night rate, certainly well below 10p a kilowatt hour. So I think that's into single digits. It should be live and ready for consumers in October. And then a question from FDS. We have solar panels and as we're retired, charge the EV car during the day on days we're not using it, especially the sun's shining. Are we missing out now with reduced FIT payments on your new system? So, the data we've got so far is that we base this on about 1,800 houses, so it will include heavier consumers, is that generally speaking, people are 20% better off on fairly normal patterns of export, and that's really because the deemed or assumed amount was relatively low I think.

42:24 Your specific case I think will depend on who you are, but what we would probably say is contact us and we may actually be able to then put you onto a better export product when you do export. I'd answer that. Yeah. Think I would just add actually that if you have an EV, then it's... The the power you get from the sun is always better to use typically than than export. So I think that whilst you may not be able to export, you are doing the best thing with it, which is putting it into your car and putting it into your home. Thank you, but do contact us and we can look at your case in more detail. Nigel, Rupert, if I may just jump back in there and thank you very much indeed for being so generous of your time and addressing all of those questions that came in from investors this morning And of course, as usual, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended just for you to review and to then add any additional responses, of course, where it's appropriate to do so. And we'll publish all those responses out on the investor meet company platform.

43:21 But Nigel, really just before looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, if I could please just ask you for a few closing comments just to wrap up with, that'd be

43:32 great. Well, thank you for your time and attention this morning. I would say a couple of thoughts in closing. Firstly, we should recognise that it's been an extraordinary period and in some ways remains an extraordinary period for UK energy supply and energy consumers. We've obviously seen huge volatility in terms of pricing. We have seen a large number of energy supply companies go to the wall. We are still stuck and look to be set for some time in terms of a period of high energy costs. And I think we've had to be relatively conservative in our running of the business for some of that period. I think the difference now, and we're obviously being helped by at least a more stable market background, is that we've seen real and genuine progress in terms of transforming this business into something that I think can play a very considerable part in The UK's energy transition, and really help consumers who want to adopt and use energy in a different and greener and I think more economic way, frankly.

44:36 So it's been a good first half of proving out that we can do that at some sort of scale. I think we've got some momentum now and I look forward to updating investors about further progress the next time we meet. That's great. Nigel, Rupert, thank you very much indeed for updating investors this morning. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations. This may take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of GOOD ENERGY GROUP PLC, we would like to thank you for attending today's presentation. That now concludes today's session, so good afternoon to you all.

45:18 Thanks, Jake.