Energy Locals, the upstart electricity retailer that launched in 2017 to take on Australia’s Big Three gentailers and “kill the traditional energy model,” will soon be owned by one of those gentailers, Renew Economy has learned.
Documents emailed to Renew Economy on Thursday said the Energy Locals retail business has entered into an agreement to be acquired by Origin, in a deal that – subject to “customary contract conditions” – would see the two businesses continue to operate independently as competitors in market.
An Origin Energy spokesperson on Friday confirmed that the sale process is underway, but could not confirm any details.
“Under the new ownership of Palisade Impact and CEFC, the board has decided to focus the business on the opportunity to invest in small scale energy-related infrastructure in embedded networks,” the memo says.
“Having that as a single focus will, we believe, help the business achieve more than if it’s part of a broader set of priorities. For retail, this enables it to succeed as part of a larger organisation that can respond quickly to changing markets and regulations.”
Energy Locals launched in New South Wales in 2017 with a mission to “kill the traditional energy model from within,” obtaining a retail licence for the dual purposes of “not screwing customers” while also allowing disruptive business models and technology companies to access the market.
Led by founder and CEO Adrian Merrick, the company took on the establishment by offering customers a membership service, for a monthly set fee, and the supply of electricity based on “wholesale” market prices.
Energy Locals has also specialised in unlocking access to energy-efficient infrastructure and advanced technologies for occupants of multi-dwelling properties, making sustainable energy solutions more affordable for residents and businesses.
Along the way it has partnered with Tesla for its home battery-based virtual power plant in South Australia, and with iO Energy, an SA-based energy tech start-up offering customers the opportunity to pay less for clean energy by becoming smarter consumers.
In 2022 Energy Locals partnered with RACV to launch the insurance company’s own retail electricity offer, Arcline, and in 2023 it was named as the green energy retailer of the year by comparison website Finder.
Energy Locals’ current owner is a consortium led by investment fund Palisade Impact, which counts the federal government’s green bank, the Clean Energy Finance Corporation CEFC, as a key backer.
Pasilade Impact bought Energy Locals at around this time last year from Quinbrook Infrastructure Partners, which invested in the retailer in 2018 and helped grow its customer base. Currently Energy Locals has around 50,000 retail and business accounts in NSW, Victoria, Queensland, South Australia, ACT and Tasmania.
According to the documents seen by Renew Economy, the transfer of business ownership to Origin Energy is expected to
take place later this month or in early December.
“Origin is working on the principle of running the Energy Locals retail business as a standalone business, with operations continuing as
they do today,” the memo says.
Renew Economy has sought comment from Energy Locals, Origin Energy and Palisade Impact and will update the story with any new information.
