- Origin will be the exclusive electricity and gas provider for the Rent.com.au group
- Will benefit RentConnect and RentPay customers
- Initial term of 24 months
Rent.com.au (ASX: RNT) announced this morning it has entered into a strategic partnership agreement with Origin Energy (ASX: ORG).
Origin will be the exclusive electricity and gas provider to the Rent.com.au group. RNT CEO Greg Bader said: “We have always preferred a single partner model because it means we can provide a seamless experience and negotiate great deals for our customers.”
The partnership will initially involve two key channels: Rent.com.au and RentPay. RNT noted that a customer may not take up both the Rent.com.au and the RentPay offer. Similarly, the Company will only earn one commission from Origin.
The former relates to Rent.com.au’s RentConnect product, helping customers have electricity and gas services connected and ready on moving day. The partnership will see Rent.com.au earn a commission for each customer that signs up for an Origin electricity or gas plan. Rent.com.au will then provide a $100 gift card to each eligible customer.
The latter relates to customers paying bills, particularly through bill smoothing – a feature that allows customers to pay some bills on a frequent, regular basis.
RentPay will receive a commission for each customer paying amounts towards their Origin energy bills via the bill smoothing feature in RentPay, with the amount depending on whether the customer uses just electricity or gas, or both.
RentPay will rebate each RentPay bill smoothing customer $5 per week if they pay towards both electricity and gas services with Origin, or $3 per week for only one service.
“For example, if your energy costs are around $2,000 per year for both gas and electricity, then customers using our ‘Bill Smoothing’ solution for their Origin electricity and gas bills via RentPay could have up to $260 per year credited to their RentPay wallet,” said Mr Bader.
Mr Bader also noted that works out to be a 13% saving, or $5 per week, for simply paying bills.
“We are looking forward to working with the Rent.com.au team, as we share their determination to make renting a simpler and more rewarding experience. With the increasing cost of living pressures being felt across the household budget, we are delighted to be able to provide renters with great energy deals through Rent.com.au, and via our partnership also help provide customers with savings they can use towards their rental costs,” said Duncan Permezel, Origin’s General Manager, Retail Sales and Marketing.
Three other key terms were noted by RNT:
- An initial term of 24 months from the start date. Origin has the option to extend for further 12 month periods following the initial term,
- Origin is the exclusive energy provider and RNT may not promote any other gas, electricity product other than Origin’s on all its assets, and
- Standard termination clauses including breach, insolvency and change of control (on the part of Rent.com.au only). Following the initial term of 24 months, either party can cancel by giving 90 days notice.
