Origin Energy (ASX:ORG) has established a strategic partnership with UK retailer Octopus Energy.
The company says the partnership will “transform its retail operations delivering a radical improvement in customer experience, a material reduction in costs, and opening up future growth opportunities”.
Origin will acquire a 20 per cent interest in Octopus, appoint a director and an observer to the Octopus board and acquire a licence in Australia to Octopus Energy’s customer platform, Kraken.
Over the next 2 and half years, Origin will transfer its 3.8 million retail electricity and gas customer accounts to the Kraken platform, with expected pre-tax cash savings of $70-80 million in FY2022, and these savings expected to increase to around $100-150 million annually from FY2024.
The company says the Kraken platform will simplify the user 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.
Shares in Origin Energy (ASX:ORG) are trading 3.2 per cent lower at $5.38.