Meridian's Powershop in licensing deal with UK npower

Tuesday 17th November 2015

Meridian Energy subsidiary Powershop has entered a franchise licence agreement with UK based electricity generator and supplier RWE npower.

The deal will see Powershop's electricity retail platform and brand used by npower, one of the UK's 'Big Six' energy retailers with about 10 percent of Great Britain's domestic electricity market, the Wellington based company said in a statement.

Powershop started retailing electricity in New Zealand in 2009, and launched in the Australian market with Meridian Energy Australia in 2013. It now has more than 110,000 customers on both sides of the Tasman.

"The UK deal is a natural extension of the entry into the Australian market in 2013," Meridian chief executive Mark Binns said. "The licensing deal gives Powershop the opportunity to sell the technology and know-how its team has developed, with no exposure to foreign wholesale energy markets and minimal capital outlay.

Meridian last traded at $2.185, and have gained 31 percent in the past year.

BusinessDesk.co.nz

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