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Red Energy Review

Red Energy is an electricity retailer owned by Snowy Hydro – the Australian-owned renewable energy generation company behind the Snowy Mountains Hydro-electric Scheme. Since launching in Victoria in 2004, Red Energy has expanded its electricity retail services to New South Wales, South Australia and most recently South East Queensland. Red Energy also retails natural gas in Victoria and NSW.

Red Energy is a frequent front runner in Canstar Blue’s customer satisfaction ratings. It has topped the charts in our NSW comparison for the last four years in a row, and has consistently scored well in our Victoria review. Red Energy appears to have struck a popular balance between good customer service and generally competitive prices across the country.

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Red Energy Plans

Red Energy offers two residential electricity plans in each state it services. While some plans share similar names, the rates, discounts, incentives and conditions vary from state to state. Most Red Energy electricity plans offer its famous 10% pay on time discount on your entire electricity bill – not just usage rates.

Victoria

Red Energy competes with more than 20 other electricity retailers in Victoria, including another Snowy Hydro-owned brand, Lumo Energy. This is how Red’s plans shape up:

  • Living Energy Saver: This is a variable plan with a 10% discount for paying bills on time. This contract has no fixed term, and gives customers access to the Red Energy Rewards program which includes $1,500 worth of discounts and bonuses.
  • Living Energy Saver Green: This plan is identical to the Living Energy Saver, though customers on this plan will have 100% of their electricity usage matched in renewable generation under the GreenPower program for an additional 5.83c/kWh.

New South Wales

Red Energy also competes in a hugely competitive NSW electricity market, but continues to keep things simple for customers with its concise range of plans:

  • Living Energy Saver: Similar to Victoria, this is a variable rate plan with a 10% pay on time discount. It has a two year benefit period and includes access to the Red Energy Rewards program.
  • Easy Saver: This is once again a variable rate contract with a 10% discount. There is no contract period and customers are free to leave at any time. However, Easy Saver customers don’t have access to Red Energy Rewards.

South Australia:

Red Energy is a little less prominent in South Australia where Lumo Energy appears to be the stronger Snowy-Hydro brand. Nevertheless Red continues to offer two plans in SA:

  • Living Energy Saver: This is a variable rate plan with a 10% discount on the entire bill with a two year benefit period. South Australians do not have access to Red Energy Rewards however.
  • No Exit Fee Saver: This plan includes a small 3% discount for an indefinite benefit period.

Queensland

Red Energy launched in South East Queensland in early 2017 and looks set to make a big impact in this newly deregulated market:

  • Easy Saver: Similar to the deal of the same name in NSW, this is a variable rate plan with a 10% discount. There is no benefit period on this contract.
  • Easy Saver Green: This is essentially identical to the Easy Saver plan. The only difference is that customers on this plan have 100% of their electricity usage matched with renewable generation for an additional 5.83c/kWh.

Red Energy Rates

Red Energy might be a smaller retailer than the likes of AGL and Origin, but it can go toe-to-toe in terms value. When comparing Red Energy to other retailers, it’s important to remember that Red’s 10% discount applies to both usage and supply charges, while most other retailers only apply discounts to the usage costs. This means that, while Red Energy’s discount might sometimes look smaller, in actual fact it could be saving you more.

To offer an idea of how Red Energy compares on price to other electricity retailers in your state, Canstar Blue regularly assesses electricity plans to show what households can expect to pay if they sign up with the highest discounted offer of the compared providers. The following quarterly costs are based on single rate tariffs and average energy consumption figures for five person households.

Red Energy Rates Victoria

Electricity plan Discount Non-discount cost Discount cost
Living Energy Saver 10% $413.75 $372.37

Costs based on annual usage calculations broken down into quarterly payments. Calculations based on statistics from AER for a five person household on the Citipower network. January 2017.

Keep in mind that these costs are based on Citipower network prices and the rates you’re charged may vary depending on your distribution network. Red Energy was one of the cheapest retailers in our latest cost comparison report for Victoria.

Red Energy Rates NSW

Electricity plan Discount Non-discount cost Discount cost
Easy Saver 10% 10% $499.64 $449.68

Costs based on annual usage calculations broken down into quarterly payments. Calculations based on statistics from AER for a five person household on the Ausgrid network, January 2017.

These costs are for customers living on the Ausgrid network which covers most of Sydney and parts of northern NSW. Customers on the Endeavour Energy or Essential Energy distribution networks are charged different usage and supply rates. See how Red Energy compares to other providers in our NSW price comparison.

Red Energy Rates QLD

Electricity plan Discount Non-discount cost Discount cost
Easy Saver 10% 10% $555.02 $499.52

Costs based on annual usage calculations broken down into quarterly payments. Calculations based on statistics from AER for a five person household on the Energex network, January 2017.

The rates we used are standard for households on the Energex network which covers most of South East Queensland. Customers outside this area are on the Ergon distribution network. Red Energy is one of the cheapest retailers in Queensland according to our Queensland cost comparison.

Red Energy Rates South Australia

Electricity plan Discount Non-discount cost Discount cost
Red Energy Living Energy Saver 10% $704.34

Costs based on annual usage calculations broken down into quarterly payments. Calculations based on statistics from AER for a five person household on the SA Power Networks network, January 2017.

SA Power is the only distribution network in SA, meaning these cost estimates are applicable state-wide. See how Red Energy compares using our price comparison for South Australia.

Red Energy Solar

Red Energy has partnered with solar experts to offer customers a range of solar solutions tailored to your home. Red Energy says its solar options include:

  • Mobile energy monitoring system
  • Outstanding performance in low–light irradiance environments
  • Up to 12 year product warranty

Red Energy has also partnered with Panasonic to offer customers its 5.3kWh Lithium-Ion Battery, providing a comprehensive solar PV solution.

Solar feed-in Tariff

Like all retailers, Red Energy credits you for the electricity your solar panels export to the grid. The feed-in tariff that Red Energy pays is usually in-line or slightly higher than state averages. You can compare solar providers here.

Red Energy Rewards

Red Energy has partnered with Frequent Value to give its New South Wales and Victorian customers access to up 3,500 different offers. Customers can use up to $1,500 worth of benefits and discounts. Deals include:

  • Restaurant & hotel discounts
  • Cheaper movie tickets
  • Discounted gift cards
  • Cheaper tickets to events and tourist attractions

Billing options

Red Energy offers a full billing option range to cater to all preferences. This includes online payments, BPay, payment by phone, in person and CentrePay.

Red Energy also offers ‘EvenPay’. Instead of paying large, quarterly bills, customers are charged the same amount in more frequent, smaller amounts. To do this, Red estimates your payments to try and balance them with your estimated annual usage.

Is Red Energy right for me?

Red Energy is a safe, well-rounded electricity retailer. It is often one of the cheapest options and has earned a great reputation for its customer service. That said, its electricity prices are mixed across different states, so it’s important you consider your personal circumstance when comparing electricity retailers. A great place to start is with Canstar Blue’s customer satisfaction ratings, showing that Red often rates highly in Victoria and has been the standout retailer in NSW for many years. It is less prominent in South Australia and Queensland, but this looks likely to change in the coming years.

The bottom line is that Red Energy appears to be a solid option, with generous whole bill discounts helping customers reduce overall costs. But you should always consider several providers before making a final decision. This includes checking energy price factsheets in your state to get a real picture of what you will be paying.

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