AGL Energy has sold its digital metering subsidiary, Active Stream, to Ausgrid.
AGL expects to make a $25 million post-tax profit from selling Active Stream, which has installed more than 230,000 digital meters across NSW, Queensland and South Australia.
The sale is expected to be completed by early December.
Ausgrid CEO Richard Gross said the purchase represents an exciting milestone in pursuit of Ausgrid’s strategy in the Power of Choice metering market.
“Ausgrid is demonstrating its capabilities in the growing digital metering sector,” Mr Gross said.
“We have a strong history in metering and significant track record of delivery as a metering provider.
“Ausgrid’s ambition is to be the metering service provider of choice to major and minor retailers, delivering high quality customer service at affordable rates.
“We look forward to a strong collaborative relationship with AGL delivering metering and other customer services.”
Active Stream was established in 2015 to install digital meters ahead of the Power of Choice regulatory reforms that come into effect on December 1, 2017.
The reforms are expected to drive significant growth because digital meters will be required for all new and replacement meters for small customers.