What's Inside

™ AUSTRALIA MARKET GUIDE

WHAT’S INSIDE

SECTION 1: General market overview SECTION 2: Viridian and Click Energy SECTION 3: How to sign up

SEPTEMBER 2016 GENERAL MARKET OVERVIEW

Brisbane

Adelaide Sydney Canberra

Melbourne

ELECTRIC

NATURAL GAS

© 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 2 is strictly prohibited. Market Snapshot The National Electricity Market (NEM) is the wholesale electricity market that delivers electricity to almost 10 million homes and businesses in Australia. Established in December 1998, it’s one of the largest geographically interconnected power systems in the world, covering a distance of approximately 4,500 kilometres through New South Wales, Queensland, South Australia, Victoria, Tasmania and the Australian Capital Territory. The aim of the NEM is to make sure electricity is available when it’s needed, in a cost effective and reliable way.

There are three main participants in the NEM:

• Generators, which are coal, natural gas and renewable power stations that sell electricity to the market. • Distributors, who own and manage the infrastructure (poles and cables) which bring the electricity to residential and business customers. • Retailers, who buy electricity from the market. They then sell electricity on to residential and business customers. Click Energy is an Energy Retailer in Australia.

Out of the 10 million residential consumers in Australia, the following percentages have switched to a market contract:1 • Victoria: 88% • South Australia: 84% • New South Wales: 69% • Queensland: 46%

What is a distributor? Distributors are a core part of the constant supply of electricity and gas into homes and businesses. For electricity, distributors own and manage the poles and cables which deliver power. Gas distributors own and manage the pipelines which distribute gas across the country. A customer does not have a choice as to which distributor they use, as location of their property will determine this.

Who are the distributors? Distributors are different in every state. Some states have more than one distributor. Below is a list of the distributors in New South Wales, Queensland, Victoria and South Australia.

ELECTRICITY GAS

New South Wales (NSW) Victoria (VIC) South Australia (SA) Victoria (VIC) Ausgrid AusNet Services SA Power Networks AusNet Services Endeavour Multinet Gas CitiPower Essential Energy Jemena Australian Gas Networks Queensland (QLD) Powercor Australia Energex United Energy

1. Source: State of the Energy Market 2015, published by the Australian Energy Regulator (AER)

© 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 3 is strictly prohibited. What is Deregulation? Rather than the state government determining the price that customers pay for electricity and gas in that state, some states have allowed for private companies to compete for customers’ business. This is called deregulation. The deregulation of the energy industry in Australia started in Victoria, to increase market competition and to give consumers a choice of providers. This gave private companies the opportunity to enter the energy market and offer retail electricity and gas to consumers. Due to the success Victoria experienced through deregulation, Queensland, New South Wales and South Australia also chose to deregulate. Due to this process, there is a large diversity in regards to energy prices across Australia. In some states, such as Victoria and New South Wales, there are a large number of retailers, providing a healthy quantity of retailer competition. In other states (such as Western Australia) deregulation has not occurred.

The Solar Market Throughout the last decade, state governments have encouraged the adoption of solar energy by creating solar bonus schemes and setting minimum solar feed-in tariffs (FIT) to customers. The size of the tariff varies in each state, and the government would give more to customers that installed solar systems earlier. Each of the state government solar feed-in tariffs have an expiry date, for example the 60c Solar Bonus scheme in NSW will expire 31st December 2016.

*The information in the tables below was accurate as of September 2016.

VICTORIA

OPEN New Standard Feed-in Tariff • Only scheme still open to new solar installations/applications Scheme • Retailers pay 8c as mandated by the government • System must be 100kW or smaller CLOSED Old Standard Feed-in Tariff • Customers get paid the same rate to export electricity as they Scheme pay to import electricity • This scheme is no longer running Premium Feed-in Tariff • Opened in late 2009 and was closed to new applicants by the end of 2011 • Distributors pay 60c provided the system is 5kW or smaller • Offer will expire by the end of 2024 • Can switch to Click Energy and keep offer provided the NMI is unchanged • Credit balances refunded over 12 months or $100 min collection Transitional Feed-in Tariff • Replaced premium FiT in 2011, closed to new applicants by the end of 2012 • Distributors pay 25c provided the system is 5kW or smaller • Offer will expire by end of 2016 • Can switch to Click Energy and keep offer provided the NMI is unchanged

OPEN Retailer-funding only • Open to all new applicants and will replace all current Scheme schemes by 31 October 2016 • Retailers are recommended to give 7.7c CLOSED 60c Solar Bonus Scheme • Opened in January 2010 and was closed to new applicants at Scheme (60c- 6.6c + 10c = 63.4c Total FiT) midnight on 28 April 2011 • The eligible system must have been purchased or leased on or before 27 October 2010 and an application was made to connect to the grid before 18 November 2010 • Customers must have a gross metering system that does not exceed 10kWh of generation capacity • Distributors pay 60c, for which retailers are required to pay 6.6c of this. Click Energy offers an additional 3.4c on top of the 6.6c making the total FiT 63.4c • Offer will expire by 31 December 2016 • Systems connected from 1 July 2012 are not eligible to receive the scheme tariff payments • Can switch to Click Energy and keep offer provided the NMI is unchanged 20c Solar Bonus Scheme • Opened in late 2009 and was closed to new applicants by the (20c- 6.6c + 10c = 23.4c Total FiT) end of 2011 • Distributors pay 60c provided the system is 5kW or smaller • Offer will expire by the end of 2024 • Can switch to Click Energy and keep offer provided the NMI is unchanged • Credit balances refunded over 12 months or $100 min collection

QUEENSLAND:

OPEN Retailer-funding only See product table for the current offers available Scheme CLOSED 44c Solar Bonus Scheme • Customers who applied for the Queensland Solar Bonus Scheme Scheme before 10 July 2012 and maintain their eligibility can continue to receive a feed-in tariff of 44c • This feed-in tariff is closed to new solar customers. The Solar Bonus Scheme is legislated to expire on 1 July 2028

You will lose eligibility for the 44c feed-in tariff rate if you • Move house (as this will result in a new electricity account holder for the premises) • Sell or let your house (if this results in a new electricity account holder for the premises) • Increase your inverter capacity (size) • Close your electricity account • Are disconnected (for example, because you fail to pay a bill or for breach of contract) 8c Solar Bonus Scheme The 8c feed-in tariff concluded on 1 July 2014. From this date, electricity retailers set and pay their own feed-in tariffs

OPEN Group 5 • Approved permission to connect received after 30 September Scheme 2013 • No feed-in tariff offered but you may be eligible to receive a minimum retailer payment from your electricity retailer CLOSED Group 1 • Approved permission to connect received by 31 August 2010. Scheme • System fully installed and connected by 29 January 2012. • 44c until 30 June 2028 Group 2 • Approved permission to connect received between 1 September 2010 and 30 September 2011. • Solar system fully installed by 30 September 2011. • 44c until 30 June 2028 • Feed-in tariff payment is limited to the first 45kWh exported to the grid each day Group 3 • Approved permission to connect received between 1 September 2010 and 30 September 2011 • Booking made with SA Power Networks for the installation of an Import/export meter within 120 days of 1 October 2011. • Solar PV system fully installed and connected at any time between receiving approval to connect and the meter booking cut off date • 44c until 30 June 2028 • Feed-in tariff payment is limited to the first 45kWh exported to the grid each day. Group 4 • Approved permission to connect received between 1 October 2011 and 30 September 2013. • Fully install and connect your solar PV system at any time between receiving approval to connect and the meter booking cut off date • 16c until 30 September 2016 • Feed-in tariff payment is limited to the first 45kWh exported to the grid each day.

Retailer Funded Feed-In Tariff The retailer funded feed-in tariff is added on top of the government feed-in tariff, or in the case where there is no solar bonus scheme from the government, the retailer will be providing the entire amount. Click Energy has placed a strong emphasis on the competitiveness of its Solar Packages, particularly in regards to the competitive feed-in tariff that it offers.

Meet Viridian: An energy pioneer Opening its doors in 2009 with an entirely new offering—affordable, responsible electricity—and the tagline “Power with Purpose” that captured the new company’s mission, Viridian changed the face of the retail energy industry in the U.S. and has made a difference for hundreds of thousands of people around the world. Today in the U.S., Viridian customers have helped avoid more than 3.4 billion kilograms of harmful carbon emissions simply by using their electricity and natural gas the way they always have. Plus, they have helped support local and global sustainability initiatives that range from beach and park cleanups to providing solar power to remote, off-grid areas. Australia is Viridian’s frst international market.

Meet Click Energy: An online innovator Click Energy is an online energy retailer established in 2006, serving thousands of customers in Victoria, New South Wales, Queensland and South Australia. In 2015 Click Energy received the Canstar Blue award in Queensland for customer satisfaction and continues to maintain high ratings for Australian energy retailers from Product Review, Facebook and Google Plus. The company is unique in being the frst energy retailer that operated completely online, hence lowering its operating costs and transferring those savings to their customers. For more information about Click Energy, please visit www.clickenergy.com.au.

Viridian and Click Energy: Joining forces The new strategic alliance between Viridian’s Australian subsidiary and Click Energy will provide competitively priced, energy products to consumers in Queensland, New South Wales, Victoria and South Australia. The partnership will pair Click Energy’s proven, award-winning online customer experience with the power and reach of Viridian’s growing network of passionate, independent direct sellers in Australia. “Australians shouldn’t have to choose between their wallets and helping the planet,” said Dominic Drenen, CEO of Click Energy. “We’re thrilled to partner with a category-creator like Viridian and look forward to fnding new and innovative ways to deliver value to the more than 6 million households in our country’s eastern and southern states, while helping the environment.”

KEY INFORMATION FOR ASSOCIATES Follow Compliance Guidelines Always remember to keep your sales activities in line with the behavior mentioned in the Viridian University Video. Although Click Energy has made it simple for you to refer customers to their service there are also specifc rules in regards to the way you market and speak to the consumers that must be followed in order to comply with the laws to protect consumers.

Credit Check Background Credit Checks: Click Energy undertakes a credit check on all new customers to obtain information about the customer’s past credit performance. The credit check is performed by an external credit reference agency (Dun & Bradstreet) who use the personal information provided by customers, hence the importance of obtaining multiple forms of identifcation on sign-up. The credit check process happens once a new customer comes to Click Energy, and customers will be informed if their application is unsuccessful.

© 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 7 is strictly prohibited. Enrolment and Billing Explain the Process Click Energy’s enrolment process is online only and there are no paper applications or bills. All a customer needs to do is provide their information and they’re all set. A customer has 10 business days to cancel the contract before it goes into effect although with Click Energy there are no locked contracts with any Early Termination Fees.

Billing Click Energy bills on a monthly basis, even though the actual usage is read quarterly for customers with analogue meters. This allows customers to budget evenly throughout the year. Customers with Smart Meters will also be billed monthly, however their monthly bills will reflect actual usage. Gas customers do not have Smart Meters, so they will be billed based on usage read every 2 months instead of every 3 months. However, these customers will still get monthly bills. If a customer has both electricity and gas with Click Energy they will be receiving two bills, one for electric and one for gas.

Smart meters and billing Australia has recently adopted digital electricity meters (also known as ‘Smart Meters’). This allows for electricity usage to be read remotely by the distributor allowing for quicker and more accurate reads. In contrast Analogue Meters have to be read manually usually on a quarterly basis. Uptake of Smart Meters varies greatly across different states, with Victoria being the only state where the majority of customers use a Smart Meter. Regardless of meter type, all Click Energy customers will receive bills monthly. When the customer has a Smart Meter, Click Energy receives an actual meter read each month, and therefore bill the customer based upon exactly what they have used. For customers without Smart Meters, the usage data is only received quarterly, so the customer receives an instalment bill (usually $100) for 2 months, which is then reconciled against the actual usage data in the 3rd month.

Tom and Brian live in VIC and both sign up to Click Energy’s Simply Right electricity plan. Tom has a smart meter so he will receive actual bills every month. However, Brian has an analogue meter, so he will pay monthly instalments to Click Energy. Their frst three months will look like this:

MONTH 1 MONTH 2 MONTH 3 Tom receives a bill for his Tom receives another bill Tom receives another bill SMART actual usage for his frst for his actual usage for his for his actual usage for his month. He pays the full second month. He pays the third month. He pays the full amount using direct debit full amount using direct debit amount using direct debit

MONTH 1 MONTH 2 MONTH 3 Brian receives a $100 Brian receives a second Brian receives his actual ANALOGUE instalment bill. He pays $100 bill. He pays using read bill. He has a $200 using direct debit direct debit credit applied, and pays the remainder using direct debit

© 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 8 is strictly prohibited. For gas, there are no Smart Meters. Gas meters are manually read every two months, but similar to electricity, Click Energy bills monthly. Therefore, for every customer there is an instalment bill (usually $50) for gas in the off month.

Tom also has gas at his house and signs up to Click Energy’s Simply Right Natural Gas. His frst two months will look like this:

MONTH 1 MONTH 2 Tom receives a $50 instalment bill. He pays Tom receives his actual read bill. He has a using direct debit. $50 credit applied, and pays the remainder using direct debit

COMPARING RATES AND GETTING A QUOTE Comparing Rates Click Energy’s customer rates will vary depending on various factors such as the type of plan the customer would like, the location and the market conditions. When looking at rates a customer should take into account the Daily Supply Charge, the usage charge and if there are any connection or disconnection fees.

Concessions Each state has their own forms of government assistance which consumers can apply for if they meet the requirements. Click Energy has collected the concessions available for each different market on their website for ease of helping their customers out: https://www.clickenergy.com.au/concession-information/.

Getting a quote Click Energy has created an online quote tool for all customers to quickly and easily “Get a Quick Quote”.

STEP 1: From the Main Page, the customer simply selects “Get a Quick Quote”.

© 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 9 is strictly prohibited. STEP 2: The customer now enter their postcode, chooses Electricity, Natural Gas or both and selects “Get a Quick Quote”.

STEP 3: This screen shows the customer their fully customisable quote. The customer can either choose their household size from Minimal, Small, Medium or Large, or enter their exact usage. They can also choose Small Business or select if they have Solar Panels. The tool is very simple to use.

If they scroll down the page, they will see a fully transparent breakdown of their quote.

From this screen, the customer can then click “Switch to Click Energy” and proceed to switch to Click Energy’s Viridian Simply Right product and enrol as a customer.

ENROLMENT PROCESS How to Become a Click Energy Customer: Becoming a Click Energy customer is easy. Click Energy has a market-leading online sign-up process for a new customer to complete. This will take most people less than 4 minutes. From that point Click Energy will look after all the work to be completed for the customer to be signed up with Click Energy.

What is required to be a customer? There are a few criteria that are required for an individual to become a customer of Click Energy: • An individual must be over the age of 18 years old. • Click Energy requires the details from a VALID identifcation document. This can be either an Australian driver’s licence, an Australian Medicare card, or any Passport. • Each customer must be able to pass a credit check, which happens on every application that Click Energy receives.

© 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 10 is strictly prohibited. STEP 1: FIND A PLAN To determine what products a prospective customer is eligible for, we need to know a few details about them. This is all captured during Step One.

Your Postcode: Will determine the distributor which services the customer’s site. Services: A customer will then be able to choose which services they want from Click Energy. Are You Moving Home: This question will inform Click Energy whether there is a current connection at the property. If not, Click Energy will organise a connection for the specifc date the customer needs. If there is a current connection with a different Energy Retailer, Click Energy will then organise the transfer of services. Solar Panel: This will determine whether or not a customer needs a solar package With this information Click Energy will be able to determine which plan is right for the prospective customer. Once this information has been entered, a customer can click the ‘Find A Plan’ button on the bottom right corner of the screen. This will bring up the appropriate plan for electricity and/or gas for the customer to review.

STEP 2: ENTER YOUR DETAILS This step is the most time consuming, because the customer needs to add the relevant details so that Click Energy will be able to initiate an account. Part One: Personal details, such as name and contact information Part Two: Address; this will also include an address look-up feature Part Three: Identifcation; customers will need to provide the number from an identifcation document. This could be a driver’s licence, a Medicare card, or a Passport.

© 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 11 is strictly prohibited. STEP 3: SELECT OPTIONS In this section a Click Energy customer can add their Direct Debit details. They can choose from bank account or credit card payment. Please note direct debit via credit card carries a 0.6% credit card fee. This is also a section where customers that are eligible for government concessions can add the details so that it will appear on their frst bill. As a retailer of electricity and gas, Click Energy has an obligation to ensure customers eligible for such concessions have them applied against their energy bills. It is a legal requirement that Click Energy asks customers whether or not they require life support, so that essential life support equipment used by the residential customer or another person that lives at the same addresses as a residential customer is not disconnected without proper notice. This information is then passed on to the distributors.

STEP 4: SELECT OPTIONS In order to confrm that we have captured all of the correct information, Click Energy repeats it on the fnal page for customers to review and confrm. Once a customer is happy that their details are correct, the fnal page also includes the Terms and Conditions of the plan. Once a customer has read the T’s & C’s and is happy with the offer they can submit the request and Click Energy will fnalise every detail from there. The customer can simply relax and let Click Energy do all of the hard work.

© 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 12 is strictly prohibited. WHAT HAPPENS BEHIND THE SCENES? Once a customer has completed the sign-up process for Click Energy, they will be transferred over upon their next Scheduled Meter Reading. This occurs when the distributor for the customers’ area reads how much electricity has been used and sends the information to two parties, their current energy retailer, and their new energy retailer (Click Energy). This process can take up to 90 days, depending on when the distributor reads the meter.

COOLING OFF PERIOD TRANSFER PERIOD

10 Days Up to 90 Days SWITCHED IMMEDIATE DAY 2 DAY 5 DAY 10 FINAL SWITCHED +30 Days Credit Check Welcome Customer re- Cooling off period METER READ The meter should email sent ceives a welcome of 10 business Click Energy switch into Click Energy within 2 call confrming all days applies to in the 90 day period arranges to take FIRST BILL business details to ensure provide a over the new depending on when A customer will days everything is set customer with premise or existing the next schedules receive their frst up correctly ample time to site by using the meter read takes place. bill after they cancel their meter identifer for Exceptions can occur have switched to potential switch the service such as no access to Click Energy read the meter

Click Energy uses this time wisely to establish the customer’s account, and to also keep the new customer informed on the process.

STEP 1 STEP 2 STEP 3 STEP 4

Initial contact is made with Customer signs up to Address and contact phone are Confrmation email sent to the prospective customer Click Energy through Viridian checked customer with sales reference number EMAIL ADDRESS [email protected]

MOBILE

0412345678

SWITCHED – Hi. Customer Reporting to Viridian You’ve This is Switched! Click... starts on-boarding

Transfer Success Welcome Pack Welcome Call

90 Days

During this time Click Energy will call the customer and ‘welcome’ them on-board. This is a key part in Click’s market-leading customer service. As many Click Energy customers sign-up online they have no personal experience with Click Energy. By receiving the welcome call they feel appreciated as a customer. Also, the customer service representative will confrm details on the account to make sure they are correct, and can make any updates as necessary. The Click Energy customer will also receive a welcome email. This outlines all of the information about Click Energy and the plan that they are now on. This welcome email will provide the customer with information they can refer to in the future. Click Energy will then continue to inform the customer as the process continues, to let them know when they will be switched over to Click Energy. Once the transfer has happened, Click Energy will send a ‘Transfer Success’ email informing the customer that they are now officially a customer of Click Energy, and that they will receive their frst bill in one months’ time.