AGL tips $150 million into UK-born smart energy platform

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AGL announced it has entered into an agreement with United Kingdom-based technology platform Kaluza, an AI-enabled platform that digitises energy billing and provides customers with real-time energy insights that help them reduce their bills.

The platform, owned by UK-based electricity supplier Ovo Energy, also serves as an energy management system, allowing customers to manage the use of rooftop solar and grid exports and to orchestrate the charging of electric vehicles, battery energy storage systems and other flexible devices.

Kaluza currently services more than six million meters in the UK.

AGL said it plans to transfer its four million electricity and gas customers onto the platform over the next three years as part of an overhaul of the utility’s retail operations.

The company expects the program to provide significant cost savings, estimating it will deliver pre-tax annual cash savings of between $70 million (USD 46 million) and $90 million from 2029. AGL has estimated the cost of the retail overhaul will tally $300 million over four years.

The program builds on AGL’s existing relationship with Kaluza which has been in place since 2021 when AGL purchased a majority stake in Ovo’s Australian retailing business. AGL, which now fully owns that operation, said Ovo’s Australian customer base was transferred onto the Kaluza platform in 2023 and it now supports more than 80,000 customers.

AGL CEO Damien Nicks said the Kaluza platform will enable “a step change in customer experience” and allow the utility to better support its customers as they decarbonise and electrify.

“This represents a significant milestone in our transformation journey to connect more customers to a sustainable future,” he said.

“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.”

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