In an increasingly competitive market, flattening consumption and market disruption require AGL to continue it’s focus on innovation. We’ve decided to move away from being a mass retailer, to becoming a personalised retailer, ensuring our customers are more empowered and have access to smarter solutions and improved technology. Our 16.4% churn rate is lower than the market (20.2%), evidencing our strong focus on retaining high value customers, and, that the products and services we are delivering are satisfying the requirements of our 3.6 million customer accounts.
We’ve continued to invest in growth (entry into the WA gas market), rebranding to ensure relevance with today’s energy consumer and in the development of initiatives to better serve our customers into the future. Although higher bad debt numbers have affected business operating efficiencies, consumer gross margin per customer account increased by 0.5%.
New Energy – Our innovation accelerator
Partnerships and Products have been highlights for New Energy over the 2017 Financial Year:
- Committing to a 10 year partnership with Energy Impact Partners global coalition will give AGL’s New Energy business access to leading -edge technology and strategic international partnerships where collaboration seeks to result in increased revenues and reduced costs, and to provide customers with smarter energy solutions through innovation.
- When fully developed, our South Australian Virtual Power Plant will be the world’s largest residential virtual power plant (having 5 MW peaking capacity). Going live in FY17, the plant will provide an estimated $500 per annum saving on a customer’s energy bill and offers an alternative capacity to thermal plants as they close. This will enable high penetration of renewables in the South Australian grid by allowing intermittent renewable energy to be used when it’s needed, rather than when it’s produced.
- Converting the meters of 17,000 AGL solar customers in NSW to digital meters will enable customers to derive greater value from their solar systems by enabling them to self consume and export energy back into the grid.
Wholesale Gas Portfolio
In FY 2017 we have continued to pursue multiple options to strengthen supply in gas and develop our portfolio in response to a dynamic and volatile market.
On 10 August 2017 we announced Crib Point in Victoria as the preferred location for a potential LNG Import Facility as part of our approach to maintaining future security and stability of gas supply. We also continue to provide a reserve of natural gas through our facilities at Newcastle and Silver Springs, to help secure continuity of supply during periods of peak demand and supply disruptions.