The Kogan.com Ltd (ASX: KGN) share price has had a solid start to the week following the release of a positive announcement.
In morning trade the ecommerce company's shares are up 2.5% to $5.25.
What was announced?
This morning Kogan announced that it has entered into a multi-year agreement with Meridian Energy Ltd (ASX: MEZ) subsidiary Powershop Australian which will see it offer competitive power and gas services to Australian households under a new brand, Kogan Energy.
According to the release, Kogan Energy is expected to launch by "the end of the 2019 calendar year and will focus on simplifying the provision of power and gas for millions of Australians and making these essential services more affordable through digital efficiency."
However, details including pricing and availability will be released by Kogan Energy closer to the launch date.
Though, given how the Kogan brand is synonymous with price leadership achieved through leveraging digital efficiency, it is safe to assume that it will be undercutting the leading players such as AGL Energy Limited (ASX: AGL) and Origin Energy Ltd (ASX: ORG).
The company's executive director, David Shafer, believes the partnership with Powershop will help reduce the cost of power and gas for many Australians.
He said: "Kogan.com is excited to partner with Powershop, which is part of Meridian Energy – Australasia's largest 100% renewable energy generator. This partnership will enable Kogan.com to offer Aussies low cost power and gas, and a first-class customer experience using technology that will enable customers to easily track their energy usage at any time."
Mr Shafer added: "With well over one and a half million active customers, Kogan.com is proud to be able to offer a genuine win-win-win for Meridian, for Kogan's shareholders and, most importantly, for Kogan.com customers who will get access to low prices on power and gas, and a seamless digital experience."
This sentiment was echoed by Meridian Energy Australia and Powershop Australia's chief executive officer, Ed McManus.
He said: "We generate some of the cleanest and greenest energy in Australia. Together with Kogan, we believe we can make a real difference to the energy space by delivering simple, great value, energy offerings through Kogan Energy."
