Antinuclear

Australian news, and some related international items

Telecommunications company joins Click energy to challenge coal electricity utilities

Telco, online energy retailer merge to take on coal-laden utilities, REneweconomy, By  on 10 April 2017

Junior telecommunications company amaysim has agreed to pay $120 million for online energy retailer Click Energy in a move designed to challenge the dominance of the big utilities in both the telco space and the energy sector.

The potential merger of telecommunications and energy offerings has long been mooted. But, despite Telstra snapping up PowerShop’s Ben Burge last year to head the newly created Telstra Energy and promising its own line of solar and storage, little has happened to date, although combined offerings have become common in the US and Europe.

“I think it will be standard here in the next few years time,” says Dominic Drenen, who will continue his role as CEO of Click Energy. “We think we can put together a bundled product that is quite compelling. For consumers, they will be dealing with one platform, so it’s just one less hassle.”

The two companies think there are significant opportunities for an “asset-light” retailer that is not burdened by legacy assets such as ageing coal-fired power stations.

“Retailing industry players are burdened with complex legacy systems and pricing structures, with most major providers also owning ageing coal-fired generating assets,” amaysim CEO Julian Ogrin said in a presentation. “Customers face large confusing bills, bill shock, no real online engagement or DIY experience and poor customer service is common.”

Ogrin sees a “once-in-a-generation” opportunity in the forced migration of around 8 million Australian homes changing their broadband service by 2020. He says the telco and energy sectors are typically “inert”, so the opportunity to increase market share in the forced migration of NBN is a unique opportunity.

It expects to have its first combined offers available in 2018, and sees major savings in “back-end” IT platforms and other synergies of around $5 million a year…….http://reneweconomy.com.au/telco-online-energy-retailer-merge-to-take-on-coal-laden-utilities-99299/

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April 12, 2017 - Posted by | AUSTRALIA - NATIONAL, business, energy

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