2019-12-16 13:03:571970-01-01 00:00:00

Kogan Confirms its Move to Energy

Kogan.com (ASX: KGN) was founded in 2006, as a direct-to-consumer online business model, which has since expanded into markets including mobile and internet services, insurance, travel and even home loans. As of yesterday morning (June 24), Kogan announced it has entered into a multi-year agreement with Meridian Energy’s Australian subsidiary, Powershop. Together, Kogan and Powershop will provide competitive power and gas services to consumers domestically under the new brand, ‘Kogan Energy’. 

Kogan’s new partner is a New Zealand owned green energy producer. Meridian’s assets include hydro-stations producing enough electricity to power around 1.4 million homes, and wind farms capable of powering upwards of an additional 150,000 homes.  

Powerhouse Australia is a leader in low-cost, high-efficiency, ultra-high temperature thermal conversion in the waste-to-energy market. Focusing on creating affordable, environmentally friendly power options for consumers. Powerhouse has a positive public relations base, being the only officially recognised carbon neutral energy-provider by the Australian Government. The positive PR is expected to become a value proposition as Kogan Energy seeks market share with its’ consumer products.

Royal Bank of Canada analyst, Tim Piper, said Kogan’s decision to partner up with Powerhouse is based on their pre-existing investments in infrastructure, as they already have the capacity to distribute energy services to Kogan’s substantial 1.5 Million customers. Kogan aims to have its electricity and gas services available for the public to purchase by the end of the 2019 calendar year. 

An issue regarding renewable energy in a practical consumer market is the associated costs. Powershop was rated as the greenest electricity provider in 2018, however, it was noted that the cleanliness is matched by an increased price. In response to the criticism, Powerhouse has stated that Kogan will be responsible for setting final pricing, and going off their track record it is plausible they will opt for the pricing strategy that undercuts competitors. Kogan will be responsible for sales and marketing, and Powershop will be in charge of providing operations, as well as physical retail and instalment. 

Kogan is beginning to move into an all-in-one service provider. Offering sales of long-term and fast moving consumer goods,  financial services, software services, and now the energy to power them all. All of this while reducing the global carbon footprint, and keeping investors positive with a ~45% increase in their share-price this year alone. 

Ed McManus, chief executive of Powershop owner, Meridian Energy stated yesterday that “Together with Kogan, we believe we can make a real difference to the energy space by delivering simple, great value, energy offerings.”   

After the news broke out yesterday Kogan shares initially gained at the open but were 2.1% lower at 1.00pm AEST amid struggling index. 

In the overall market, there are 25 companies listed on the All Ords who solely focus on renewables and sustainability. Kogan is currently the leading online retailer in Australia in terms of size, and despite Amazon having made its way into the domestic market scene, Kogan dominates the way that Australians are retailing online. This is a good sign for investors in both Kogan and Powerhouse. As Kogan and Powerhouse move forward in their venture to push cleaner energy options, consumers and investors alike should closely monitor for market news as this new product establishes itself in the consumer energy marketplace.

By Will Banham

Click here for a 7 days access to our Lotus Blue Portal.

KOSEC does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information provided. KOSEC is intended to provide general information only. Please be aware that investing involves the risk of capital loss. This message is confidential and may be privileged. It is intended only for the use of the addressee named above. If you are not the intended recipient, any unauthorised dissemination, distribution or copying is illegal. We do not guarantee the security or completeness of information hereby transmitted and are not liable in either respect or in respect of any delay. Nothing in this message is intended as an offer or solicitation for the purchase or sale of any financial instrument. Any market prices or data, unless specifically verified and identified as such, are not warranted as to completeness or accuracy. Kodari Securities Pty Ltd (KOSEC) is a Corporate Authorised Representative (No. 399 556) of Longhou Capital Markets (AFSL No. 292464) which is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC wishes to disclose that KOSEC and its staff may hold stock they recommend in their own portfolios and that any decision to purchase recommended stock should be done so after the purchaser has made their own inquires as to the suitability to their own requirements. Click here to view our FSG.

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

Disclaimer
KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

Fees
As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

Privacy
You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.

CLAIM YOUR FREE E-BOOK &
7 DAY ACCESS TO LOTUS BLUE

STOCK MARKET SUCCESS

KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.

CLAIM YOUR FREE E-BOOK WHEN YOU LOGIN TO LOTUS BLUE INVESTMENT PORTAL

Latest TV Commercial