Former Foxtel and News Corp boss Kim Williams has emerged as a backer and chairman of subscription-based electricity provider Mojo Power.
Describing Mojo as “the Costco of power“, Mr Williams said the new company taps into the consumer empowerment trend, and has a compelling business model.
“New technologies and market deregulation are combining to create a huge opportunity for a new entrant with a business model that’s completely aligned to helping households pay less for their electricity needs,” he said.
Mojo labels itself as a “highly disruptive” energy business. Unlike other retailers, Mojo does not profit from selling more power to customers. Rather, it supplies electricity to its customers at cost and charges a fixed-monthly fee of around $30 to access hedged wholesale power prices, which undercut rival retailers’ standing tariffs by about 30 per cent.
Consumers are also able to monitor real-time electricity usage on their smartphones through the use of smart meters.
The company recently launched in New South Wales and intends to operate across the country by the end of the year after receiving a $5 million investment from the Southern Cross Renewable Energy Fund, backed by the Australian Renewable Energy Agency and Softbank China Venture Capital.
Mojo chief executive James Myatt said Mr Williams had the experience and leadership to market the business model to Australian families.
“He pioneered many of the digital broadcast innovations in Australia, built large subscriber bases and negotiated a complex regulatory environment to forge very profitable, consumer focused businesses,” Mr Myatt said.