Energy Choice
                            

Matters

Flash: Just Energy Returns To Customer Growth

November 12, 2015

Email This Story
Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

Just Energy, in releasing earnings this morning, reported a net increase in its customer count during the three months ended September 30, 2015, reversing the net decline it witnessed during the three months ended June 30, 2015 as it focused on per-customer profitability.

While Just Energy continues its margin discipline and focus on increasing margins on new customers, it was still able to add a net of 4,000 Residential Customer Equivalents (RCEs) from June 30, 2015 to September 30, 2015

This compares to a net decline of 77,000 RCEs from March 31, 2015 to June 30, 2015.

Total Just Energy RCEs as of September 30, 2015 were 4.613 million, versus 4.609 million RCEs as of June 30, 2015 and 4.604 million a year go.

The net increase in RCE count as of September 30, 2015 was driven by the commercial segment, which reported 2.708 million RCEs as of September 30, 2015, versus 2.677 million RCEs as of June 30, 2015 and 2.657 million a year ago.

This commercial growth offset a decline in Just Energy's mass market RCE count, which stood at 1.905 million RCEs as of September 30, 2015, versus 1.932 million RCEs as of June 30, 2015 and 1.947 million RCEs a year ago.

During the three months ended September 30, 2015, Just Energy recorded 290,000 gross RCE additions. Mass market gross additions were 139,000 RCEs, a decrease from the 174,000 RCEs in the prior year, "primarily due to market conditions as the commodity prices were lower and therefore, more competitive across all markets," the company said.

Just Energy said that its mass market RCE count includes 49,000 smart thermostats that are bundled with a commodity contract and tend to have lower attrition and higher overall profitability. "Further expansion of smart-thermostats is a key driver for continued growth for Just Energy," the company said

Just Energy's geographical footprint continues to diversify outside of North America. U.S., Canadian and U.K. segments accounted for 71%, 23% and 6% of the customer base, respectively, in the second quarter of fiscal 2016. This compares to U.S., Canadian and U.K. segments representing 72%, 25% and 3% of the customer base, respectively, one year ago.

Sales channels also continue to diversify, as gross customer additions were generated through door-to-door sales (26%), commercial brokers (44%) and online and other non-door-to-door sales channels (30%). This compares favorably to the prior year when 22% of 354,000 customer additions were generated using door-to-door sales, 46% from commercial brokers and 32% from online and other sales channels.

Just Energy's combined trailing 12 month attrition rate of 17% increased two percentage points from 15% one year ago.

Mass market attrition rates remained consistent at 27% compared to the prior year, which includes the impact from higher customer defaults in markets where Just Energy bears collection risk.

Commercial attrition rates increased four percentage points to 10% compared to the prior year, primarily due to loss of short term variable rate customers, increased competition as Just Energy continues to focus on maintaining its profitable customers and ensuring that variable rate customers meet base profitability profiles even if this results in higher attrition.

Just Energy is holding an earnings call this afternoon.

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Direct Business Development Manager -- Retail Supplier
• NEW! -- Compliance Manager -- Retail Supplier
• NEW! -- Operations Analyst -- Retail Supplier -- Houston
• NEW! -- ERCOT Business Development Manager -- Retail Supplier -- Houston
• NEW! -- Channel Manager -- Retail Supplier
• NEW! -- Marketing/Channel Manager -- Retail Supplier -- Houston
• NEW! -- Supplier Services Account Executive
• NEW! -- Manager, Operations -- Retail Supplier -- Houston
• NEW! -- Settlements Analyst -- Retail Supplier
• NEW! -- Data Administrator -- Retail Supplier
• NEW! -- Energy Services Program Director - $230K