Smart energy spending plans weigh on AGL shares
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More news: Shares in AGL Energy were down nearly 1.5% to $10.33 after Australia's top electricity generator said it will spend $300 million over the next four years to transfer its four million electricity and gas customers on to the Kaluza smart energy platform to simplify billing.
AGL says the move will cut costs by $70 million to $90 million annually from FY29. AGL will also invest $150 million to take its stake in Kaluza, owned by UK's OVO Energy, to 20%.
AGL to deploy smart energy platform, to buy stake in Kaluza
The news: AGL Energy will take a stake in UK-based OVO Energy’s Kaluza smart energy platform after agreeing to deploy its technology to simplify billing operations for its Australian customers.
The numbers: AGL, Australia's top electricity generator, will invest $150 million in Kaluza via preference shares, bringing its direct stake in the company to 20%.
It will also spend $300 million over the next four years to transfer its four million electricity and gas customers on to the Kaluza platform. The move will result in pre-tax cash savings of $70 million to $90 million annually from FY29, it said.
The context: Kaluza is a flexible technology platform that digitises and simplifies energy billing, reduces cost to serve and enables faster product innovation to facilitate the energy transition. It currently services more than 6 million meters at OVO Energy in the UK.
The decision builds on AGL’s existing relationship with Kaluza through its investment in OVO Energy Australia. Kaluza successfully migrated OVO Energy Australia’s customer base onto the platform in 2023 and now supports over 80,000 customer services.
AGL said its investment in Kaluza will also allow it to provide input into the strategic direction of the business. The funds will be deployed to accelerate Kaluza’s international expansion.
The source: ASX announcement
