There are major shifts occurring that are transforming the energy industry from the traditional centralised generation model to a more distributed and integrated energy supply chain. Energy customer preferences are moving away from basic services and having limited control, towards renewable energy, smart home technology and micro generation. Technology is enabling personalisation of service, and we are prioritising the rapid digitisation of our business in order to drive productivity and deliver greater flexibility in how we take our products and services to market. A fundamental aspect of our approach to innovation is developing products and services that are accessible to a broad cross-section of our customer base, particularly where these meet a specific customer need.

We have a demonstrated track record of innovation and advocacy for new technologies and solutions including through offering smart metering, mobile management of energy usage, and electric vehicle charging.

During FY18, we focused on the following initiatives that demonstrate our innovative approach to product and service delivery:

• Energy Insights: In March 2017 we saw an opportunity to provide an industry-leading service to demystify energy consumption. We worked with customers, industry groups and advocacy groups to create a solution for our customers, and following dedicated customer research involving in-home behavioural interviews, a pilot with 3,000 Victorian smart-metered customers, surveys and feedback sessions, in May 2018 we launched an innovative digital reporting service, Energy Insights. Energy Insights provides our customers who have smart meters with personalised, data-led estimates via email, free of charge, of how much energy was used by each appliance category over a given period, what it cost and how it contributed to their overall bill, and tips to reduce their energy usage. These powerful insights help customers make informed decisions on their energy usage behaviours.
• Self Service Meter Read: In April 2017 we launched a service to address customer concerns about estimated reads for gas and basic electricity meters. The Self Service Meter Read functionality allows customers to provide their own meter read to AGL at any stage of their billing cycle using the AGL app or My Account. Customers are able to immediately adjust an incorrect bill, provide a read to be used for billing, or receive feedback on costs incurred to date and projected billing. This has received a very positive response by customers, and has led to a significant reduction in network special meter reads. In the 12 months to June 2018 we received around 345,000 self-service meter reads, and the number of special meter reads we have had to request from networks has dropped by nearly 33%, delivering vastly improved control into the hands of our customers.
• AGL Essentials: As indicated in the Energy prices and affordability section, our customer research revealed that many customers don’t want to spend their time comparing their energy plans to alternatives available in the market, and many customers prefer a simple energy plan that offers the certainty of fixed rates. In response, we launched a new, low fixed rate, digital-only energy plan called AGL Essentials. It provides customers with increased peace of mind of knowing that their rates are fixed for 12 months, and offers the ability to monitor energy costs via an iPhone or Android app, affording customers increased understanding of their energy usage in real time.
• Prepaid product: AGL recognises that the uncertainty of energy bills can be stressful, particularly for budget conscious customers, and that the array of discounts on the market can be confusing. In response, we’ve developed a product that allows customers to prepay an amount that suits them, when it suits them. From March 2018, our Victorian smart metered customers can manage their electricity consumption through this new Prepaid product. Customers benefit from access to bonus credits based upon their top-up amounts, as well as a range of new consumption tracking and alert features.
• New South Wales Demand response program: In October 2017, AGL entered into a partnership with the Australian Renewable Energy Agency (ARENA) and the New South Wales Government to supply 20 MW of demand response in New South Wales, as part of the Short Notice Reliability and Emergency Reserve Trader (SN RERT) initiative by ARENA and the Australian Energy Market Operator, for the period 1 December 2017 to 30 November 2020. This project is designed to demonstrate the ability of behind-the-meter distributed energy resources to deliver dispatchable demand reduction and support reliability in the National Electricity Market. During FY18, 18 MW of demand response has been made available to the market by AGL’s industrial, commercial and residential customers as per the agreed schedule to support grid reliability during extreme demand peaks.
• AGL/Amazon partnership: As an extension of AGL’s commitment to giving our customers greater control over their energy use, in January 2018 AGL launched a series of offers in partnership with Amazon. This included offering Amazon Alexa voice control to AGL customers, which made it easier for them to manage their energy usage at home. These initial offers allowed AGL to grow our investment and knowledge in smart home technology and to unlock greater benefits for energy users, as our business model moves towards a more personalised experience.
• Virtual Solar: AGL is committed to helping more Australians harness the power of solar energy to lower their energy bills. In November 2017, we launched the AGL Virtual Solar pilot, which is an innovative trial in New South Wales that aimed to enable more people to access savings through the use of solar power, especially customers who rented their homes, lived in apartments or otherwise could not install solar PV panels at their premises. Our AGL Virtual Solar pilot offers these customers a new way to access solar savings, via an AGL energy plan and solar subscription. We have had a positive response to this trial from our customers which has led AGL to further develop options relating to offsite solar with our customers. The pilot will continue to run for a further 12-months until April 2019 as we look to further understand from our customers what motivates them in relation to solar and its benefits.
• Virtual Power Plant (VPP): In August 2016, we announced the launch of AGL’s innovative VPP, with financial assistance from ARENA. The VPP involves 1,000 connected batteries installed in homes and businesses in South Australia, providing 5 MW of peaking capacity and offering customers the opportunity to save on their energy bills. Participants in the VPP are able to use their home battery systems to store excess energy produced by their solar systems, allowing them to be discharged when they need it. This helps households draw less power from the grid, which can help them save on energy bills. In March 2018, AGL entered into a supply arrangement with Tesla, SolarEdge and LG Chem to offer participants the opportunity to upgrade their home battery storage systems to some of the world’s best technology from these companies. The upgrade of this residential VPP, which has more than 1.4 MW of battery capacity installed and operating, will increase its ability to help support the electricity grid at times of high energy consumption. The project is constantly evolving as we build on the knowledge we have gained from the operation of the VPP.
• Solar energy trading technology peer-to-peer trial: To improve our customers' energy experience, in FY17 we commenced investigating ways that customers could derive more value from distributed energy resources, including solar panels and battery storage. This has continued throughout FY18, and in July 2017 AGL commenced a 20-customer peer-to-peer trading trial in Adelaide, aimed at exploring the value to customers of sharing solar energy for financial and social gain by connecting them with their peers. This also enables them to make more efficient use of their solar power and batteries, and contribute to the decarbonisation of their community. The trial uses a prototype web application that enables customers to set their trading goals and connections, and to understand their household energy usage and trading activity with peers. This is another way that AGL is assisting customers who are not able to install solar PV panels on their homes to gain access to some of the advantages and benefits of solar power.
• Electric vehicles (EVs): We are striving to remove the obstacles to EV ownership and to drive the uptake of electric vehicles in Australia. In November 2016 we launched our ‘all you can eat’ capped energy plan, enabling EV drivers to charge their vehicle at home as much as they want for $1 per day (including carbon offsetting). This has attracted around 300 customers to date. From 9 June to 31 July 2017, AGL partnered with Tesla to offer our first AGL energy plan bundled with a third party global brand. During this promotional period, Tesla offered one year’s free subscription to the AGL Electric Car Plan to 166 new car buyers.

Related information

• Virtual Power Plant