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Direct Energy Plans To Launch "Own" Smart Thermostat By Year-End

July 28, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Centrica, parent of Direct Energy, said in releasing interim results today that, "We plan to launch our own smart thermostat in North America around the end of 2016."

To date, Direct Energy has offered plans bundling energy supply with third-party smart thermostats, such as Nest or Honeywell

"We are also leveraging our connected home business and having already sold over 200,000 [third-party] smart thermostats in North America we plan to launch our own smart thermostat in North America through the Connected Home business around the end of 2016," Centrica said

Centrica's North American residential energy supply customer count was 3.040 million as of June 30, 2016, versus 3.033 million as of December 31, 2015 and 3.188 million a year ago.

Centrica said that its North America Energy Supply & Services' (home and business combined) adjusted operating profit fell 50% (to £95 million), primarily due to the impact of the much warmer than normal weather, which lowered consumption and reduced its ability to optimize capacity contracts, and continued investment in its solar business

"However we expect a much stronger second half performance in 2016, reflecting significantly higher net margin under contract in North America Business, growth in paid protection plans, cost efficiencies and favourable foreign exchange movements," Centrica said

North America Home adjusted operating profit fell by 34% to £33 million, reflecting the impact of an 8% reduction in energy use per residential energy customer account compared to the first half of 2015, due to, "extreme warm weather."

"North America Home also experienced a further operating loss from its solar business, with lower than expected installation revenues and higher than expected costs. We have now taken action to make the solar business more efficient, including restructuring our operations, streamlining the sales process, simplifying the offer, and closing a number of loss-making regional offices not in core markets," Centrica said

Centrica said that in North America, "We have entered 42 new franchise territories in the first half of the year and are targeting to provide energy in three new states by the end of the year."

In the North American business segment, unit margins on new C&I gas sales were broadly flat compared to the first half of 2015, while C&I electricity unit margins were slightly down but remain broadly consistent with recent average levels. "As a result, the outlook is positive, with net margin under contract for the second half of the year 37% higher at the end of June than it was at the same time in 2015," Centrica said

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