Good Energy flags cost savings as part of tech deal with Kraken
Renewable electricity supplier and energy services provider Good Energy Group announced an agreement with Kraken Technologies - part of Octopus Group - for the provision of a new customer services technology platform on Wednesday.
The AIM-traded company said the Kraken system implementation and associated operating model transformation was expected to drive operating cost savings, customer experience benefits and future growth.
It said it would enable more customers to access competitively-positioned clean energy and technology services from Good Energy, and enable more consumers and businesses to reduce their carbon footprint, at a time when many wanted to take action to combat the climate crisis.
The agreement was in line with the board’s strategic goals of lowering customer acquisition costs, improving customer retention and increasing overall customer lifetime value through an improved offering of products and services.
Total forecast investment of £4m would be split about equally between cash and non-cash elements, the Good Energy board said.
Operating cost savings were expected to achieve payback of the forecast investment within 18 months of the April 2020 full implementation.
It anticipated that the write down of existing systems and the cash investment into implementation and transition would be taken across 2019 and the first half of 2020, while relevant transformation provisions would be taken in 2019.
The impacts would be highlighted in subsequent financial reporting.
Good Energy confirmed that the expected efficiency savings would be reinvested across the business, which would enhance existing products, services and competitiveness.
The new platform would provide “significant” scalability and flexibility, and would reportedly enable digital and clean technology innovation of “significant benefit” to customers.
It said the agreement was in the form of an implementation and transition agreement and service contract, for an initial term of three years.
Full implementation and associated costs of the contract remained subject to successful implementation and integration.
“Good Energy is recognised by Which? as the UK's most highly rated energy company for renewables,” said founder and chief executive officer Juliet Davenport.
“Kraken Technologies has developed a proven best in class customer services platform.”
Davenport sand the “powerful combination” of renewables expertise and customer-friendly technology would help the firm to realise its growth ambitions.
“We will provide additional clean energy services to the growing number of homes and businesses who want to harness the power of renewables and clean technology, to make a difference to the quality of their lives, businesses and our planet.”