From petrol to powerlines: Ampol to sell energy in Australia

Petrol major Ampol is the latest ASX-listed company set to sell electricity and gas in Australia, following moves announced by oil giant Shell and telco provider Telstra last year.

In its detailed submission to the Australian Energy Regulator (AER), Ampol stated it seeks to capitalise on the evolving market through its existing infrastructure.

“By becoming an energy retailer, Ampol will be able to bring new customer propositions to market off the back of its generation and mobility investments,” Ampol stated.

“Australian consumers and businesses continue a trend toward decarbonisation. Energy markets and consumer preferences will continue to converge, so as such, the structure of the business is aligned to our future view of the market. Nonetheless, supplying energy to household and business consumers is a key pillar of our future business direction.”

It’s a move that may challenge the larger incumbents – namely AGL, Origin and EnergyAustralia – especially as it joins a handful of corporations expanding into utilities, Canstar Blue’s Energy Editor Jared Mullane said.

“The dominance of Australia’s largest energy retailers could be challenged as new entrants set to shake up the market, particularly from companies that already have substantial customer bases across their respective sectors,” he said.

“An Ampol-branded energy provider will be on many radars and not just the big three retailers. Ampol will join Shell and Telstra, among others, in a race that will likely heighten competition in an already crowded market, giving consumers plenty of choice. While it’s too early to tell if Ampol’s products or services will be enough to win over Aussies, it may pique the interest of electric vehicle owners or those willing to give somebody new a go.”

Adapting to the changing needs of energy customers is a direction the business is headed, an Ampol spokesperson said.

“Ampol is exploring how it can evolve its business model to adapt to the future energy needs of its customers. The key areas we are looking at were outlined in our Future Energy and Decarbonisation strategy released in May 2021. They include electrification of mobility, hydrogen, renewables and biofuels. All these areas leverage Ampol’s existing capabilities, privileged infrastructure and strong customer base.”

A statement from Ampol’s Managing Director and CEO Matt Halliday in July 2021 said this strategy revealed the importance of evolving e-mobility infrastructure through the energy transition, including technologies that support ‘at-home’ and ‘at-destination’ activity.

“Ampol’s national retail network, along Australia’s major highways and close to existing high-traffic roads, closely matches our country’s population and is strategically located to help minimise range anxiety for EV users. We remain confident in our ability to evolve our retail network to support battery electric vehicle adoption”.

Ex-AGL and co-founder of Mojo Power, James Myatt, has been named Ampol Energy’s General Manager, alongside a team of industry experts with a wealth of experience.

Ampol Energy’s retail business operations will consist of onshore and offshore customer contact centres, and if approved, will be licenced to operate in New South Wales, Queensland and South Australia.

Submissions from interested stakeholders on Ampol’s application to the AER are due by 2 March 2022.

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