PowerGen offers first utilities, telecoms and Internet package

PowerGen is to launch the UK’s first packages of gas, electricity, telecoms and Internet services backed by a £5m marketing spend, following its deal with Affinity Internet Holdings, the UK’s third largest Internet service company.

The electricity generator has paid £10m for a 50 per cent stake in Affinity’s telecoms subsidiary TeleCentric Solutions.

The joint venture will enable PowerGen to sell a range of bundled utilities services, including fixed and ultimately mobile telephony to its 2.6 million customers and to Affinity’s 1 million subscribers, combined on a single bill that could be accessed through the Web.

Packages of services sold through PowerGen will carry the PowerGen brand, while products sold through Affinity’s existing Internet deals, with companies ranging from Egg, Tiny Computers and Arsenal Football Club, will carry those names.

Mike Wagner, PowerGen retail managing director, who was poached from BT in July, has masterminded the deal.

He says: “There is a real need to simplify these home services and an opportunity to add value to what we offer customers.”

He says that there is “a very strong possibility” that the joint venture company will be spun off and floated separately in the next two years.

Wagner aims to attract 100,000 customers to the new packages of services by the end of the year.

He plans to offer incentives – possibly cash back – to persuade customers to sign up, and says direct marketing will play a major role in attracting customers.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here