Fuel retailer Z Energy intends to sell its small power retailer Flick Electric to Meridian Energy, one of the country’s major power generator-retailers.
Flick launched in 2014 with the goal of shaking up what it described as “Aotearoa’s outdated, self-serving industry” of electricity retailing, thus becoming the first energy retailer to enable households to buy power directly from the wholesale electricity market.
Australian transport fuel refiner and retailer Ampol, listed on the ASX, acquired Z Energy in 2022, thereby becoming the owner of Flick Electric.
“Ampol’s divestment of Flick is about strategic fit as Z Energy evolves its strategy to focus on public, business and home EV charging solutions to scale and deliver a strong customer value proposition to support the energy transition,” a statement from Meridian said.
Meridian Energy will pay NZ$70 million to acquire Flick Electric’s 41,000 customers from Z Energy. Of these customers, approximately 39,700 are residential connections, with about 27,900 located in the North Island and 13,100 in the South Island.
The acquisition of Flick will boost Meridian’s market share to approximately 18%.
“Flick customers can be confident of moving to a company that’s committed to outstanding customer service and great value, and we look forward to having them come onboard,” Meridian chief customer officer Lisa Hannifin said.
“It’s also significant that this deal comes with a well-constructed hedge book and a commitment to a strategic partnership between Meridian and Ampol where the companies will explore deeper opportunities for customer offers. A key part of this is likely to be helping Z Energy with its EV charging and decarbonisation journey, as well as working together to deliver future offerings to both sets of customers.”