CHAIRMAN'S STATEMENT

for the year ended 31st December 2009

There is no change to our strategy: our ambition remains to transform the UK energy markets by inspiring people to choose renewable energy, not only through their source of electricity supply but also by becoming generators themselves. We have more than 26,000 customers buying power from our community of over 900 renewable generators, and we support over 350 renewable heat generators. We continue to be a valuable contributor to those institutions shaping our policy at national level.

A full review of operating performance for the year is set out in pages 6 to 9. The key highlights include the development of our gas business, and on the generation front, the final approval for the new £11.8m windfarm in Delabole which is to be constructed in 2010, and for which the financing package was agreed on 8 January 2010.

Our business has been helped by the ever-growing appreciation of the distinction between clean energy sources and energy from fossil fuels. More specifically, recent pronouncements by OFGEM on Green Supply Guidelines, Feed-in Tariffs, and the Government's proposals to introduce a Renewable Heat Scheme similar to our own all have the potential to have a positive impact on our business.

We recognise that the UK is facing unfavourable economic circumstances with inevitable pressure on household budgets likely to challenge our short-term targets. Nevertheless, we are planning to continue to improve performance in 2010 on all fronts, and in the longer run we are well positioned for more significant progress. The completion of the Delabole re-power project will be a principal activity for the year, and gives our Generation business an important platform for further growth.

With regard to our financial results, we have previously resolved to increase our profitability to a level that supports the initiation of a sustainable dividend programme. While we have not declared a dividend for 2009, the Board is now of the view that in the absence of unforeseen circumstances we should be able to implement a dividend programme in 2010 with the first payment to be made in the second half of the year once we have a clear view of our full-year profitability and cash position.

Good Energy's mission to empower ordinary citizens to lead low-carbon lives has more resonance today than it ever has. Cultural change in society can often be gradual - particularly on such big issues - and it is often driven by a small number of passionate people dedicated to changing things for the better. The power of their arguments and their unswerving focus both amplify and clarify the issues for those for whom the penny is still to drop.

In this context, the Board appreciates especially the contribution of Juliet Davenport and her team, and we do not underestimate also the value to the Group of all our Good Energy customers and suppliers. Our staff, our customers, our suppliers and our investors are all change agents for our mission. The Board thanks you all for your continuing support with our assurance that your award-winning company will continue its intention to
make a big difference.