Innovation in electricity retailing: Challenges for new entrants Emma Jenkin, Founder and CFO Electricity Review into Victorian electricity markets markets Competition has added additional costs...have not been offset with cost reductions or other benefits. As competition developed, retailers spent De-regulation more money to compete with each other...Marketing, brokerage services, and innovation door to-door sales and other sales channels

Nor has innovation offset the additional costs incurred by consumers.

If the competitive market was working we would not expect to see the low-cost supplier at the top of the price range and the high-cost supplier at the lower end.

Source: Review of electricity and gas retail markets in Victoria , August 2017 ● High barriers to entry ● High compliance costs Electricity ● Complex regulation ● Originally government owned retailing ● Crowded market ● Government policy ● System in transition ● Regulatory uncertainty ● Decentralisation ● Access to data List of ● Market structure creates ● Marketing spend challenges/ challenges - eg realising ● Acquiring customers profitably opportunities network savings/benefits for a ● Customer distrust retailer ● Customer confusion ● Capital requirements including ● Message cut through prudentials ● Deep discounting of offers ● Hedging wholesale prices ● Loss leading offers ● Electricity markets at historical ● Fear of electricity being cut off highs and very volatile ● Lack of service ● Ability to lock in competitive pricing The market • Big Three ‘gentailer’ have ~80% customers and majority of is ripe for electricity generation assets disruption • 20% of Australian homes are prosumers with rooftop solar Australian (~2 million) rooftop solar PV households are • This market segment will underserviced represent 45% of households by 2050^ (~4.5 million)

• Incumbent retailers are focused on serving traditional consumers. RESIDENTIAL This segment is shrinking! PV PENETRATION: Showing>40% penetration (purple) across Queensland, regional NSW and SA.

^Source: CSIRO WHAT MAKES US DIFFERENT

SOLAR CUSTOMER KILOWATT DC Power Co FOCUSED OWNED HOUR INDIFFERENT

WE ARE We are leading the Transparent Disruptive Passionate renewable We are trustworthy, transparent and We are forcing change in a broken We are a team of entrepreneurs who accountable leaders in the energy industry for people who have made the will take the risks necessary to create revolution in the industry. We’ll give it to you straight. investment in solar. real value for our customers. We’ll give it our all no matter what. home.

Empowering Experienced Inclusive We’ll help you understand how to make We know we can give you a great service We believe that together, we can make a the most out of your solar and if you because we have decades of experience change. We want you to be part of it as a don’t have it, whether it is right for you. in solar and energy. supporter, customer or an investor.

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The energy service are ready for company of the a new kind of 17,600 future - built by Power company that disrupts the solar people for 6,500 energy market. solar people 4,300

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DC Power Co is set up to drive the energy transformation for DATA & DER Granular, households real-time DC Power Co. generation network benefits & consumption

Distributed energy aggregator and data for the future Centralised Traditional energy models are fraying...

Centralised Demand Generation 1 to many

1 to many pricing

Lower Cost of Acquisition Maximise generation (long term) Lower Cost to Serve Profit from volatility Minimal engagement Distributed DC Power Co is trying something different

EQUIP LIMIT households with use of centralised generation Many to many distributed technologies

Many to Many Pricing

SHAPE INVERT household demand to demand relative to price signals minimise energy cost and maximise self-consumption Customer insights

DC Power Co offers all customers free, trustworthy, data-led insights about their energy and solar usage Nic Frances Gilley MBE Monique Conheady CEO Marketing Social entrepreneur, marketing campaign Marketer and social entrepreneur, founded specialist and founder of Easy Being Green Flexicar, then led the Hertz marketing team. and Cool nrg that achieved some of the The DC world’s largest energy efficiency campaigns. As the founder of a transport disrupter she is now the Victorian Taxi Services Commissioner, Both companies disrupted the way carbon a board member of the Victorian Environmental Power Co credits are created nationally and internationally, Protection Agency and Responsible Gambling and with Cool nrg he created the first CDM Foundation. team ‘program of activities’ creating credits at scale. Nick Brass Energy & Partnerships Solar expert, founder of Energy Matters and Emma worked on Cool nrg campaigns. Jenkin Nick is now facilitating some of the country’s Proven & diverse Finance largest commercial and industrial solar plants. Commodity trader, investment banker and experts worked on Cool nrg campaigns. While working for UBS, Emma raised over $2bn of IPO capital and managed a $1bn commodity Liz Greenbank book that included complex derivatives. Emma Head of Marketing has worked in fixed income and environmental A digital strategy, policy and marketing markets assessing carbon prices, raising funds professional specialising in technology and and creating carbon credits. innovation for the public good

Paul Watmough Customer Over 20 years experience in energy retail sales Yann Burden and marketing in Australia and the UK. CTO Paul’s headed up sales and marketing at Co-founder and CEO of Billcap - built to Simply and has held senior management help utilities innovate and understand their positions at Origin and Energy Australia. customers.