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​Amaysim launches energy plans to take on Australian incumbents

After launching NBN and SIM-only mobile plans already this year, Amaysim has provided information on its energy plans as it aims to become a household utility supplier.
Written by Asha Barbaschow, Contributor

Budget mobile operator Amaysim has on Tuesday launched its energy play, hoping to scoop up Australian customers with its "amazingly simple" proposition the same way it attempted in the telecommunications space.

"What matters to Australian consumers is clear -- they want simplicity, convenience, and great value from their energy retailer, and they don't want any surprises," Amaysim CEO Julian Ogrin said in a statement.

"With 93 percent of our mobile customers saying they would recommend Amaysim to their family and friends, we aim to translate this positive experience to our new energy customers."

According to Amaysim, the company's discounts don't expire and customers are not locked-in to contracts. As such, Amaysim customers that sign up to an energy plan will receive a AU$250 energy account credit or a AU$120 credit on their mobile bill.

For electricity, Amaysim is offering customers in New South Wales a 35 percent discount on electricity usage and supply charges, South Australian residents with a 28 percent discount, Victorians 31 percent off, and Queensland customers 15 percent off.

For those with gas connections, NSW residents will receive a 13 percent discount on gas usage and supply charges, while those in Victoria will receive a 21 percent discount.

NSW residents will also receive a 25 percent discount and 17 cents retailer feed-in tariff on solar, South Australians will get a 28 percent discount and 20 cents retailer feed-in tariff, Victorians a 14 percent discount and 18 cents retailer feed-in tariff, while Queensland will be extended a 7 percent discount and 14 cents retailer feed-in tariff.

Amaysim announced in April it was acquiring online pure-play energy retailer Click Energy for AU$120 million, as part of its long-term strategy to become the "remote control for the smart home".

At the time, Ogrin told ZDNet energy is the "most logical vertical" to complement the company's mobile and broadband products, and that the acquisition of Click reflects the telco's recognition of the opportunity for a "mobile virtual network operator (MNVO) of energy".

He also said the merged companies will be able to "disrupt" the larger incumbents burdened with legacy systems and pricing, as both companies are "asset-light" and "online-led" with similar value propositions: low-cost, no lock-in contracts, monthly billing, and a DIY self-service platform.

Amaysim launched NBN plans in May that sees it differentiate its NBN offering by providing customers with assistance during their broadband switchover, including in completing tasks like finding electricians.

The company also announced a series of new SIM-only mobile plans in July in an effort to further take on the big three providers by bringing down costs while increasing data inclusions.

For FY17, Amaysim announced a total net profit of AU$11.5 million, down 7 percent year on year on net revenue of AU$326.7 million, up 29 percent. Statutory earnings before interest, tax, depreciation, and amortisation (EBITDA) were AU$33.8 million, up 35 percent.

Ogrin said the positive result -- which has seen EBITDA increase by 200 percent and subscribers by 50 percent over the last two years -- is due to Amaysim's focus on customer experience, automation programs, and a new sub-based pricing model.

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