Dodo, a well known broadband and telecoms provider, has expanded into the residential energy market with its launch last week of a new business called Dodo Power & Gas. Whilst Dodo has obtained electricity retailing licences in Victoria, NSW, ACT, Queensland and South Australia it has launched only in the Victorian market with a range of electricity plans.

Dodo appears to be drawing on its experience from the ISP and mobile markets by offering consumers a choice of four plans with either zero, 12, 24 or 36 month contracts – the longer the contract the higher the discount.

We anticipate that Dodo will initially target their ISP and mobile user bases with offers to encourage them to also switch their electricity supply to Dodo. Dodo is pitching the bundle or single bill concept, offering a combined monthly bill encompassing all home services purchased by a user.

Dodo’s plans to launch into gas retailing and into other states are not known at this stage but will be entirely dependent upon their success in negotiating wholesale supply agreements, something that many other small energy suppliers have struggled with.