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Singapore Electricity Roundtable29th October 2013
Mike Fuge
Chief Operating Officer Genesis Energy
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‘Staying Ahead in a full retail competition environment’ or…….
The Rise and Rise of the Customer
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Traditional Approach
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Saturation of Generation
Over-supply of generation
Genesis Energy investing in maintenance
Keep assets in competitive market
Generation no longer the only success driver
Customer preferences driving results
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The Customer in the Energy Sector
A customer focus provides opportunity to create value – for themselves –and the Company
Instead of talking about “consumers”, we talk about “customers”
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The Rise and Rise of the Customer
Getting closer to customers is essential
Post-purchaserelationshipsare important
Customersolutions are desired
Customersresearch for what they want
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Fight on Price
Historical competitionon price
Improvechoice and control
16% customerchurn in the energy market, and leading retailer position
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The Customer Experience
Honesty about our business
Deliver value that benefits us and our customer
Look for ways to grow value for all
Lower costs to serve deliver value
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Customer Segmentation
680,000 customers
Many different groups of customers
Not all customers are the same
Match wishes of customers to offerings and services
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Internal Changes
More relevant personal service
Changing language and motivation
Tailoring our service, and respect for the customer
Customer experience is key
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Research and Understanding
Learn from our customers
Ask and listen to answers
Learn toengage
Long way to go
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Advanced Energy Neighbourhood
15 households in Tomorrow Street neighbourhood
18% monthly energy saving
Trials of new technology to see what works best and how, with high engagement model
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Four Stage Programme
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Platform – Advanced Metering
First Stage Advanced Meters
320,000 Advanced Meters installed
Meter serves as “portal” to the customer and the means of interaction
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Advanced Metering
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Where the resulshowed uinterna
Where the resulshowed uinterna
• Pricing corrections • Reduced call volumes• Reduced Filed service costs• Reduced Bad debt write off’s‐quicker disco• Reduced vacant consumption• Revenue Assurance• Value added products• Contractor safety
How our customeenjoy the benef
How our customeenjoy the benefAccurate Bill on demand
No final meter‐reading : No access issues
Energy Usage Info
Smartphone App
Multi‐rate tariff
Where the WORwent
Where the WORwent
• 323,000 meters deployed (74% for GE)
Schedules ReadsMonthly
Schedules Reads EOM Reads On Demand Reads
Discon/ReconRemote
Discon/Recon Half hour Data
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Provide Information
Second Stage Information
All Genesis Energy customers with Advanced Meters have access to data free of charge
Can plot data on monthly, weekly, daily or hourly basis
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Provide Incentive – Multi-rate Tariffs
Third Stage Financial Incentive
Trials in Orion and Waitemata networks
3 rates for time of use of power
203 customers in the 12 month Waitemata trial
3 moved to another supplier
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Provide – New Tools
Fourth StageNew Tools
Smart phone apps
Energy alerts
Other devicessuch as home management
19October 30, 2013
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Growth Retention
Regional focus Quality
Trend (G.E. churn)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Nov
‐10
Dec‐10
Jan‐11
Feb‐11
Mar‐11
Apr‐11
May‐11
Jun‐11
Jul‐1
1Au
g‐11
Sep‐11
Oct‐11
Nov
‐11
Dec‐11
Jan‐12
Feb‐12
Mar‐12
Apr‐12
May‐12
Jun‐12
Jul‐1
2Au
g‐12
Sep‐12
Oct‐12
Nov
‐12
Dec‐12
Jan‐13
Feb‐13
Mar‐13
Apr‐13
South Island Electricity consumer numbersChristchurch Dunedin South Island Other
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Door to Door Telemarketing Inbound sales GE website
2013 Acquisition Mosaic Desirabilty by ChannelFavourable Unfavourable GE Base Favourable
Retail Overview
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Growth Strategy
June 2013
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How
we will grow
RETAIN & GROW BALANCE
Corporate/Industrials & Inter‐generator
Demand Growth : Revenue : Top‐lineUtilised to balance the portfolio by selecting the highest value opportunities
High Profitability
High Opp
ortunity
RETAIN & GROW HARD
SMEBoth Demand & Market Share GrowthHigh profitability and relatively ease of access to the market with comparably lower competitor activities
High Profitability
High Opp
ortunity
High Profitability
High Opp
ortunity
RETAIN & GROW SMART
ResidentialMarket Share Growth : Profit : Bottom‐lineStagnated overall for both Energy demand and Customer numbers. Targeted retention and acquisition needed through regional and product variation strategy
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A Reliable Foundation
$105mNPAT forFY 2013
EBITDAF of$332m
Paidshareholder $110m dividend
Stable and Flexible Assets
ProductInnovation Partnerships Customer
Experience
Consistent Earnings
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The Rise and Rise of the Customer