Discounts grow in gas battle on AGL entry

Sydney-based AGL made its long-awaited entry to the Perth gas market this week, with price cuts and a range of customer incentives underpinning the company’s offering as the sector’s newest player in the domestic gas sector.

AGL is offering discounts of 20 per cent for on-time bill payment, 22 per cent for direct debit customers and 26 per cent for West Coast Eagles members, as it seeks to attract customers from existing players Alinta and Wesfarmers subsidiary Kleenheat, the latter of which introduced a 20 per cent discount to users on existing contracts who signed up for two years.

AGL chief customer officer Melissa Reynolds told Business News at an event hosted by the Eagles that the company would focus on providing a high level of customer service and product efficacy.

“What we find from talking to customers here in WA, (they) actually want a very competitive price but they want a lot more,” Ms Reynolds said.

“We’re offering 24 hour, seven day a week, around-the-clock customer care.

“We’ve also got an industry leading energy app that is a first in WA.

“(Customers) can read their own meter, and upload that into the app, that will mean that they have an accurate bill.

“One of the very common complaints we get is that customers don't like waiting around for someone to read their meter (and) they don't like estimated bills.”

AGL is spending around $100 million on entering the Perth market and hopes to win about 100,000 customers in the next two years, she said.

The market currently has a total of 700,000 customers.

A Kleenheat spokesperson told Business News the company had about 150,000 customers, or 20 per cent of the market.

He said the company's price was lower than when it entered the market, when discounts were factored in.

“We welcome competition in the WA retail natural gas market," the spokesperson said.

"Kleenheat paved the way for competition for WA natural gas over four years ago.

"We’re the only truly local supplier and in addition to our lower prices, we support the local community in many ways such as sponsoring the Perth Scorchers team in the Women’s Big Bash League."

The WA gas sector may host a fourth market player before year’s end.

Business News revealed last December that Origin Energy planned to enter the WA market this year, with the company then getting a green light from the Economic Regulation Authority in May.