AGL Energy Limited has agreed to sell its digital metering subsidiary, Active Stream Pty Ltd, to Ausgrid. Completion of the deal is expected to occur in early December.
AGL’s decision to divest its metering division reflects the evolution of the company’s strategy to become technology agnostic in the development of innovative, data-enabled energy products and services that are accessible to all customers, regardless of meter provider.
AGL expects to record a post-tax profit on the sale of approximately AU$25 million in its accounts for the six months ended 31 December 2017.
AGL started the Active Stream business in May 2015 as part of its New Energy strategy. Since that time, the division has installed more than 230,000 digital meters across New South Wales, Queensland and South Australia.
Post the sale to Ausgrid, Active Stream will continue to provide digital metering services to AGL on a non-exclusive basis.
In December 2017, the Power of Choice programme comes into effect in Australia. Power of Choice refers to regulations designed by the Australian Energy Market Commission to give consumers greater choice in the delivery of some electricity services, in particular for metering services.
Under these rules, energy retailers will be responsible for installing any new and replacement meters.