Origin Energy Limited has reported a strategic partnership with the UK retailer and technology business Octopus Energy to transform Origin’s retail operations to deliver a drastic improvement in customer experience, reduction in material costs and open future growth opportunities.
Origin will adopt Octopus Energy’s operating model and customer platform, Kraken to pursue material improvements in customer experience and costs. Origin will acquire 20 percent interest in Octopus, including a licence in Australia to utilizing Kraken. This partnership is aimed at delivering significant benefits to Origin customers, shareholders and employees. Within the next 24 to 30 months, Origin will transfer 3.8 retail electricity and gas customer accounts to the Kraken platform to delivery a reduction in operating and capital costs.
USD 134 Million will be paid upfront and USD 373 Million spread over four financial years that will be comprised of equity instalments and progress payments that correlate with the rollout of Kraken across Origin’s retail operations. Origin CEO Frank Calabria said, “The future of energy retailing lies in delivering superior customer experience at lowest cost and seamlessly integrating products and services, enabled by new technologies.
“While we have made good progress towards improving our customers’ experiences and the efficiencies within our retail business, this partnership Octopus will help us transform energy retailing by automating our end-to-end processes and embedding an operating model designed around, and for, the customer experience. This will make every transaction simpler for our customers.
“This is an exciting opportunity because it delivers transformative change through a partnership with a company that is leading in customer satisfaction and experience in products and services that sit at Origin’s core.
“By bringing together Octopus’ unique platform and operating model with Origin’s leadership in energy retailing in Australia, we will be able to accelerate delivery of our retail strategy.
“For our customers, they will have a vastly simpler experience, with the technology capable of integrating multiple services to a single bill, delivering agile tariffs and easy integration of smart meters, solar, storage and electric vehicles, accelerating demand-side management capability.
“Our people will be given the tools and empowered to provide an exceptional service, with small autonomous teams having full accountability for end-to-end customer experience, resulting in faster and better service.
“Octopus is genuinely unique in the global energy market, having purpose-built its low-cost operating model and technology platform around the needs of customers. Adopting its approach will allow Origin to create a genuine competitive advantage,” Mr Calabria said.
Octopus Energy CEO Greg Jackson said, “Octopus has been courted by platform partners and investors from across the globe, but Origin shone out. They have the most forward-thinking management of any market-leading energy company we’ve met and we admire their commitment to accelerate renewable energy adoption and deliver better service to Australian customers. We’re looking forward to helping them on that journey by using our technology to reduce energy costs, improve customer service and provide cleaner and smarter energy solutions.”