British Gas owner Centrica set to unveil £100m tech startup investment
The owner of British Gas is set to invest £100m in technology startups in a bid to push further into the Internet of Things as part of its customer retention strategy.
The £12bn London-listed gas supplier Centrica will on Monday announce a new company called Centrica Innovations, according to the Financial Times.
The new project will invest in technology companies which could eventually increase customer retention and improve its bottom line. Centrica’s results are due to be announced on Thursday.
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At the end of last year Centrica shares gained in value after cost savings led it to forecast higher than expected earnings.
British Gas has already had success with technology investments, with its smart Hive meter allowing customers to control their energy usage through a mobile app. Centrica reported half a million of the connected thermostats have been installed in the UK, with sales beginning in North America as well.
It is part of a wave of Internet of Things devices which have spurred traditional players to move into consumer-facing technology.
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Chief executive Iain Conn told the Financial Times: “As the UK’s leading energy supplier, we have a proven track record in harnessing new technologies for the benefit of our customers.”
Centrica is still engaged with exploration and production, with up to £600m of annual expenditure on production according to its website. However, in recent years it has moved focus to downstream, customer-facing activities rather than upstream production.