15/02/2018 - 15:29

Origin predicts growth in WA as more entrants come

15/02/2018 - 15:29

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Sydney-based Origin Energy has signed up close to 5,000 Western Australian retail gas customers since launching in the Perth market in October.

Origin predicts growth in WA as more entrants come
Western Australia has four major gas providers for consumers.

Sydney-based Origin Energy has signed up close to 5,000 Western Australian retail gas customers since launching in the Perth market in October.

The announcement came as the company today released its half-yearly report, which stated national growth in gas customers of around 4,000 accounts on the six months to June, to be just more than 1.1 million.

Electricity customers fell by about 50,000 to be fewer than 2.7 million, however.

Business News revealed Origin would be the fourth business to enter the WA market in December 2016, when it applied to the Economic Regulation Authority for a trading licence.

A spokesperson for Origin said the business expected to grow market share.

“We have enjoyed a strong start in WA and are well positioned to grow further off the back of our competitive products and services,” he said.

Origin’s entry follows that of AGL Energy, which joined the market in the middle of 2017.

AGL revealed in its half-yearly report that it had picked up about 7,000 customers in its first few months operating in WA.

Wesfarmers subsidiary Kleenheat, which entered the market in 2013, had about 190,000 customers as of the end of December.

There are about 700,000 customers in the market.

Accounts that are not with Kleenheat, Origin or AGL are with long-time incumbent Alinta Energy.

Business News revealed earlier this week that Simply Energy, which is backed by French multinational Engie and Mitsui & Co, will also join the market, increasing competitive pressure.

The introduction of new players has led to major price reductions.

AGL had offered a 26 per cent discount on the standard contract for certain accounts, while Origin had offered as much as a 35 per cent reduction.

AGL went further on Tuesday, offering a 35 per cent price cut for seniors card holders.

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