ERM Power is breaking into the contestable electricity metering market after its new metering business was given regulatory approval to begin operations.
ERM Power’s wholly-owned subsidiary Powermetric Metering Pty Ltd has received accreditation from the Australian Energy Market Operator (AEMO) to provide metering and meter data services to large business customers.
Chief Executive Officer Philip St Baker said network companies, many of which are state owned, were the major players in the contestable metering market which is estimated to be worth about $100 million per annum.
“Our electricity sales business which trades as ERM Business Energy has grown over seven years to become the 4th largest retailer in Australia and the 2nd largest retailer to large businesses and has been ranked number one by businesses for customer satisfaction for three years in a row,” he said.
“The time is right to expand the services we can offer to large business customers and leverage off the competitive advantage we have in owning proprietary systems for metering data management.”
“For some time we have been preparing to enter this market by developing information systems, establishing relationships with meter and telecommunications suppliers, and going through a stringent accreditation process with AEMO. Now that we have accreditation we are ready to begin operations and we look forward to providing business customers the same service levels in metering that we have with electricity sales.”
Mr St Baker said Powermetric Metering would offer a range of products and services, including the installation and maintenance of meters at business customers’ sites and subsequent provision of metering data to the market participants such as the customers’ retailer, the relevant network operator, and AEMO.
“ERM Power has made a modest investment to establish the metering business but we expect it to deliver attractive returns over time. We are confident that we can carve out a substantial market share by adopting the same business approach to customer service that has underpinned our retail business’ growth,” he said.