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Simply Energy to retail WA gas, taking on Alinta, Kleenheat, AGL and Origin Energy

March 2, 2018

Another gas retailer, Simply Energy, is set to enter to the increasingly crowded WA residential market following approval from the State Government.....

 

 

The Economic Regulation Authority has granted national provider Simply Energy a 10-year licence to sell gas to small-use customers in the coastal supply area between Geraldton and Augusta, including Perth.

 

The move follows AGL Energy and Origin Energy last year joining homegrown retailers Alinta and Kleenheat in the market, a move which has brought widespread discounting.

 

Simply Energy, majority-owned by French multinational Engie, has been operating in Australia since 2005 and claims to have 600,000 customers.

 

The company sells gas in South Australia, Victoria and parts of NSW. It also sells electricity in those States and Queensland.

 

Japanese conglomerate Mitsui & Co holds a 28 per cent stake in the business.

 

Simply Energy applied for the WA licence last October. A public comment period yielded no submissions.

 

The arrival of AGL and Origin has seen discounting by providers ramped up to as high as 35 per cent.

 

Alinta is the established market leader, reporting 548,600 residential customers at last June 30. Kleenheat, in the market since 2013, last week claimed 190,000 customers.

 

AGL reported 7000 customers by December 31, well short of a mid-2019 target of 100,000. Origin has yet to provide figures.

 

Fourteen per cent of WA’s 757,189 gas customers switched providers last year.

 

There were 13,000 new residential accounts added.

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