Teaming up with energy businessman David Goadby, the business will let customers pay a small weekly club fee to cover the cost price of electricity without making a profit, regardless of the level of consumption.
Fairfax NZ will soon rebrand to Stuff, a household name in NZ, to separate the Kiwi outlet from its Australian legacy company.
Stuff has been diversifying its revenue streams away from publishing since the 2014 majority acquisition of hyper-local social media site Neighbourly. This was followed by the 2016 fibre-only broadband service Stuff Fibre. The latest addition will aid Stuff NZ in the search for new opportunities to support the core journalism business to better service New Zealanders.
Mr Goadby, who will take on the role of CEO, said: “Unlike your current big electricity company, we do not make any money if you and your family use more electricity.”
Fairfax will hold a 49 per cent share in the business with the remaining share held by a management company.
Fairfax NZ chief executive Sinead Boucher said: “Partnering with energyclubnz is our next step in helping our communities connect and thrive. Our strategy is to partner with businesses that Kiwis will truly value, and we believe this product is designed to give people a fairer deal on their energy costs.”
Energyclubnz is expected to roll out across New Zealand in the next 12 months.