In April 2017, telecommunications group Amaysim announced its acquisition of Click Energy – one of Australia’s fastest growing electricity retailers. This move came as a surprise and will have left many of Click’s 136,000 customers unsure about what this means for their energy supply going forward.
In this article, Canstar Blue explores the reasons behind Amaysim’s purchase of Click Energy and how it may affect new and existing customers of both retailers.
Why did Amaysim buy Click Energy?
Amaysim and Click Energy claim the two companies share a similar ideology as innovative, online-focused disruptors in their respective markets. By coming together, they say they can offer a range of different services to improve the customer experience. In reality, this could mean that customers of one retailer are incentivised to subscribe to services from the other.
Click Energy CEO Dominic Drenen said: “The emergence of multi-retail product offerings in the home has been a part of Click’s strategic plan, as we have seen this evolve in other markets globally. We are delighted to be a part of amaysim and take the lead in the Australian market place.”
Julian Ogrin, Chief Executive Officer of Amaysim, says the move is the natural next step toward Amaysim’s ambitious vision to become the ‘remote control’ for smart homes in Australia. Amaysim also expanded its telco customer base in early 2016 with the acquisition of low-cost carrier Vaya. It has also recently entered the NBN market, including purchasing service provider AusBBS.
“The acquisition of Click Energy is a strategic opportunity and a significant milestone in the evolution of our company,” Mr Ogrin said. “Consistent with our goal of increasing relevance to the Australian household, we see energy as the most logical vertical to perfectly complement our existing suite of mobile and broadband products.”
Of course, there are likely a myriad of other nondisclosed strategic and financial motives that contributed to Amaysim’s decision to purchase Click. On the face of it, being able to sign up customers to both telco and energy services seems to be at the heart of it.
It should be noted that Amaysim is currently a popular choice amongst SIM-only mobile phone users, regularly performing well in Canstar Blue’s customer ratings.
What does this mean for Click Energy customers?
This acquisition will have no noticeable effect on new and existing customers for the foreseeable future. Click Energy will continue to trade under its current brand name and there are said to be no planned changes to Click products or pricing as of yet. There will also be absolutely no impact on the supply of electricity to Click Energy customers.
Click Energy products may include telco services in the future, however it is expected to also continue independently retailing electricity to homes and businesses across Qld, Vic, NSW and SA. Click Energy says that even after the acquisition is finalised, there will be no obligation on its customers to connect their mobile or broadband service with Amaysim. Conversely, Amaysim customers will not be expected to purchase electricity or gas through Click Energy.
In a media release issued by Amaysim, Mr Ogrin said that while Click Energy and Amaysim customers won’t be forced to sign up to both companies, Amaysim will use this acquisition to offer value bundled energy and telco deals.
“We’re aiming to have an Amaysim-branded energy product as part of our suite of offerings, alongside mobile, data-only and NBN plans,” he said.
Dodo is currently the only other residential energy retailer to offer mobile phone, internet and electricity services. Amaysim’s acquisition of Click Energy marks the first serious sign of competition in this niche bundled-utility market.