Aurora PAY AS YOU GO

ECC presentation 3/10/07

 Who is Aurora Energy Pty Ltd?
• Tasmanian Government owned
• Electricity distribution and retail company
• Formed in July 1998 (after disaggregation from Hydro Tasmania)
•250,000 customers in Tasmania, and growing numbers in SA, NSW, Vic and
the ACT
•Established in SA in 2005
Aurora Vision:
• To be the company most welcome into people’s homes and business
 Why South Australia?
• Similar demographic profile to Tasmania
• 2004 – Draft South Australian Prepayment Code prepared
• 2005 – Code approved
• 2005 – 5 trial customers installed
• 2006 – Ongoing market trials and product refinement
• 2007 – Market launch
 Pursuing a niche
• The South Australian market is competitive and has been very challenging
for new entrants
•New entrants need to have a differentiated value proposition – particularly
important for a small player - and we believe PAYG is the answer.
•As you are aware we launched to the broader market on 9th May 2007
•Utilising ETSA as our installer and Bill Express point of sale receipting
technology and merchant network
•We have explored all media and sales channel options
 Technology used
• Actaris two part prepayment meter
• Two way smart card technology
• Single phase installations and controlled load, possibility
of 3 phase
• Utilising Bill Express point of sale receipting technology
and merchant network – there are over 200 throughout SA.
In fact Bill Express has 14,000 recharge locations across
Australia
•Technology is continually changing though…
 How APAYG works
Prepay
Device
Smart
Card
Credit
Tariff Data
Commands Meter Readings
Credit, Meter Status
Tariffs, TOU data

$ Recharge
Agent
Back Office
Meter Readings, etc. System
Transactions

Tariff Data
Commands
 Time of Use Pricing

The benefits are…

 Before the Launch

• Established a trial to:

• Prove the technology
• Work with the stakeholders such as ESCOSA, Ombudsman and with industry
partners such as ETSA
• Grow consumer awareness within the community sector by liaising with
Salvation Army, SACOSS, Unit Care Wesley, established a Consumer
Committee, presented to yourselves Energy Consumer Council and others
 The Launch

•Integrated Marketing Communication strategy including TV, Radio,

Shopping Centre Demonstrations, direct mail, outbound telesales and outdoor
advertising
• Excellent media coverage including TV, radio and print
• Excellent customer response,post-launch market research indicates:
• 7 in 10 Adelaide residents have heard of Aurora PAY AS YOU GO
• Customers used terms including “easy”, “innovative”, “interesting”, “good
idea” to describe our product & 14% of those surveyed likely to switch to prepaid
metering
 The Challenge ahead
Retail positioning:
• Establishing a new product in a new market, a new company = fair challenge
• Tier 2 retailer issues with new product, market rules and compliance
• Performance managing installations
• Being compliant with regulation
• Market and Competitor response
• Channel management- sales & service
• Finding out what you don’t know…
 Summary
• Entering a new market successfully is a significant challenge.
•Introducing a brand new, technology based product introduces an
additional layer of complexity.
•For Aurora this has been a 14 year journey in the PAYG space
•South Australians like the product and we feel confident that if we can
build on the positive experience customers have with managing their
electricity consumption will see Aurora PAYG grow.