AGL Energy Limited recently announced a major agreement with Kaluza to overhaul its customer operations as part of its Retail Transformation Program.
According to AGL, the program will focus on enhancing the customer and agent experience, significantly reducing operating costs, improving speed to market, and is a key step to accelerating AGL’s ambition to connect its customers to a sustainable future through electrification.
Under the agreement, AGL will deploy Kaluza’s scalable and flexible technology platform across its 4 million consumer electricity and gas accounts over the next three years.
According to AGL, Kaluza’s platform will digitise and simplifies energy billing, reduces operating costs, and enables faster rollout of new products and services, including home solar, batteries and EV management.
Kaluza already supports over 6 million customer meters at OVO Energy in the UK.
AGL previously invested in OVO Energy Australia in 2021 and now owns it fully after successfully migrating OVO Australia’s 80,000 customers to Kaluza in 2023.
The Retail Transformation Program is expected to deliver net benefits starting in fiscal year 2028, with pre-tax cash savings of approximately $70-90 million annually from fiscal 2029 through reduced operating expenses and capital expenditures.
AGL will invest around $300 million over four years to implement the residential and small business solution, covering program management, customer migration, systems integration, and supporting platform changes.
Additionally, AGL will invest approximately AUD $150 million for a 20 per cent stake in Kaluza through preference shares.
This will give AGL representation on Kaluza’s board and a share of the value as Kaluza pursues international expansion using the invested capital.
“This represents a significant milestone in our transformation journey to connect more customers to a sustainable future,” AGL CEO Damien Nicks said.
“Our world-class technology, enabled by Kaluza and alongside other industry partnerships, will allow us to develop a future suite of simplified products that will seamlessly integrate into the lives of our customers and improve their experience.
“The technology market is changing materially with the emergence of new core utility platforms offering greater flexibility and speed, which makes it imperative to partner with industry leaders, and is why we have chosen Kaluza.”
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