The majority of electricity market share in deregulated states is held by the major retailers, AGL, Origin and EnergyAustralia. However, in recent years a growing number of smaller retailers have risen up and slowly begun to chip away at the big guys. Among those leading the charge are Lumo Energy and Simply Energy. Both these retailers offer big discounts and alluring specials, but how do they stack up in value when pitted against each other?
In this article, Canstar Blue compares Lumo Energy and Simply Energy electricity deals across each operating state to see which is cheaper. While some plans share the same names across different states, the details of the offer may vary. Be sure to read the energy price factsheet for full details and ensure it’s the right deal for you.
Victoria is the most competitive energy market in Australia, and this is reflected by no less than nine different variable rate plans between Simply Energy and Lumo Energy. Let’s start by reviewing those from Simply Energy, which has a strong focus on eye-catching discounts.
- Simply Save: Simply Energy’s base offer electricity plan, this comes with a significant 30% discount off usage charges when you pay your bills on time. It has a 12 month benefit period and no exit fees.
- Simply Plus: This offer is a step up from the Simply Save plan, providing a maximum discount of 35% off usage charges when you pay on time. It also comes with no exit fees and has a benefit period of two years rather than one.
- Simply RACV Plus: This energy deal is exclusive to RACV members in Victoria, offering a maximum discount of 40% off usage charges when you pay on time. It has a 24 month benefit period and no exit fees.
- Simply Gold Class Plus: This deal includes Simply Energy’s standard 30% pay-on-time discount, as well as up to 16 gold class movie tickets for use at Village Cinemas. It has a benefit period of two years with no exit fees.
Lumo Energy has five electricity offers in Victoria. While Lumo’s discounts might not look as impressive as Simply Energy’s at face value, Lumo Energy discounts apply to your entire bill, not just usage charges.
- Lumo Advantage: This plan comes with a maximum discount of 27% off electricity usage and supply charges when you pay your bills on time. It provides access to Lumo Energy’s exclusive retail shopping program, Lumo Ameego. There are no exit fees and flexible billing options are available.
- Lumo Advantage Premium: An upgrade to the previous offer, this plan comes with a maximum discount of 33% off all charges when you pay your bills on time. Rather than flexible billing, it comes with direct debit payments and email billing. You can also benefit from the same Lumo Ameego program.
- Lumo Options: This is Lumo Energy’s standing electricity offer. Standing offers have no contract term, discounts, transfer or exit fees – just basic electricity supply and usage charges. Lumo describes this plan as perfect for renters.
- Lumo Life 10: Lumo Energy’s GreenPower offer, this plan comes with a 27% pay-on-time discount on all charges, plus access to Lumo Ameego and email billing. With this plan, Lumo will commit to sourcing the equivalent of 10% of your electricity consumption from government accredited renewable programs, which will be fed back into the grid.
- Lumo Movers: Claimed to be perfect for households who move a lot, this plan comes with a 10% pay-on-time discount, an open contract and one ‘free move’ per calendar year.
Who’s cheapest in Victoria?
As you can probably tell, Victorians are spoiled for choice when it comes to electricity retailers and plans. Unfortunately, that also makes it difficult to find the best value deal. To see who is cheaper between Lumo Energy and Simply Energy, we have compared the (non-exclusive) plans with the highest discount for each retailer. These prices are estimates of what a five-person family in Melbourne (on the Citipower network) can expect to pay each quarter, after discounts have been applied.
|Victoria||Simply Energy||Simply Plus||35%||$358.43|
|Victoria||Lumo Energy||Advantage Premium||33%||$387.68|
Costs based on yearly usage calculation broken into quarterly payments. Average energy consumption figures from AER for a five-person household with no pool on the Citipower network. Figures correct as at January 2017.
In Victoria, we see that discounts really can make the difference, with Simply Energy coming out cheaper than Lumo Energy. It should be noted, however, that Lumo’s Advantage Premium plan includes access to Lumo Ameego – the retailer’s rewards program which brings other cost-saving benefits. You can compare these costs to other providers in Victoria with our price comparison report.
Lumo Energy and Simply Energy both have a strong presence in the South Australian electricity market, with each provider offering a wide range of competitive deals. Simply Energy offers South Australians two plans, as well as an exclusive offer for NRMA members.
- Simply Save: This plan comes with a maximum discount of 10% off usage charges when you pay your bills on time. There is a 12 month benefit period and exit fees apply.
- Simply Plus: This is a bit of an upgrade on the above plan, with a maximum discount of 15% off usage charges when you pay on time. Unlike the Simply Save, this one has a two-year benefit period, but once again exit fees will apply if you leave early.
- Simply NRMA Plus: This offer is exclusive to members of NRMA, with a maximum discount of 18% off usage charges when you pay on time. It has a two-year benefit period and no exit fees.
With the exception of the ‘Lumo Advantage Premium’ plan, Lumo Energy offers South Australians the same list of plans it offers in Victoria, albeit it with smaller discounts.
- Lumo Advantage: This plan comes with a 15% early bird discount off usage and supply charges when you pay your bills on time. It also comes with access to the Lumo Ameego shopping program and there are no exit fees.
- Lumo Options: This is Lumo Energy’s standing offer contract in South Australia. Once again there are no exit fees and free upgrade to another energy plan if you so wish.
- Lumo Life 10: This is a GreenPower accredited plan, meaning Lumo Energy will commit to sourcing the equivalent of 10% of your energy consumption from renewable sources. It includes a 15% pay-on-time discount on usage and supply charges, as well as access to exclusive deals through Lumo Ameego.
- Lumo Movers: The same as its plan in Victoria, this offer is targeted at households who tend to move around a lot. The plan has a modest 3% pay-on-time discount on the entire bill and provides one free move per calendar year. It is an open contract, meaning customers are free to leave at any time.
Who’s cheapest in South Australia?
To find out which electricity provider works out cheapest in South Australia, let’s compare the Simply Plus offer and the Lumo Advantage plan, both of which include a 15% pay-on-time discount.
|SA||Simply Energy||Simply Plus||15%||$601.00|
|SA||Lumo Energy||Lumo Advantage||15%||$598.69|
Costs based on yearly usage calculation broken into quarterly payments. Average energy consumption figures from AER for a five-person household with no pool on the SA Power network. Figures correct as at January 2017.
Simply Energy and Lumo Energy are extremely close in terms of price on this occasion, but Lumo is just about cheapest overall. If you’re torn between the two retailers, consider the NRMA member offer, or if you could benefit from Lumo’s Ameego program. You can see how other retailers stack up in our SA electricity price comparison report.
While Lumo Energy and Simply Energy hold relatively small shares in the Queensland electricity market, they both offer extremely competitive deals, even rivalling the big retailers in terms of value. Simply Energy’s South East Queensland electricity deals include its Simply Save and Simply Plus, as well as an exclusive offer for RACQ customers.
- Simply Save: This is Simply Energy’s base electricity offer. It includes a 10% pay-on-time discount on usage costs for the first 12 months and there are no exit fees for customers who leave early.
- Simply Plus: Once again Simply Energy beefs up the discount on its Simply Plus plan, offering 15% off usage charges when you pay your bills on time. This discount applies for two years, though there are once again no exit fees if you choose to leave.
- Simply RACQ Plus: This exclusive offer for RACQ members includes a 18% pay-on-time discount off electricity usages charges. The plan has a 24 month benefit period and no exit fees.
Customers in Brisbane and the rest of South East Queensland considering a switch to Lumo Energy have the following options to choose from:
- Lumo Advantage: This is Lumo Energy’s most popular plan. It includes a 10% pay-on-time discount on electricity usage and supply charges. It also gives customers access to the Lumo Ameego shopping program.
- Lumo Options: Lumo Energy’s basic standing offer electricity plan in Queensland. Standing offers don’t include discounts, however there are no exit or transfer fees, meaning customers are free to leave anytime. Lumo Life 10: This is Lumo Energy’s GreenPower accredited offer. Customers on this plan will have 10% of their electricity usage matched by Lumo with electricity sourced by renewable generators. The rates on this plan are a little higher, but customers will receive a 10% discount on their bill when they pay on time.
Who’s cheapest in Queensland?
Let’s compare the highest discounted offers of Simply Energy and Lumo Energy in Queensland, to see which works out cheaper for five-person households.
|QLD||Simply Energy||Simply Plus||15%||$503.39|
|QLD||Lumo Energy||Lumo Advantage||10%||$499.52|
Costs based on yearly usage calculation broken into quarterly payments. Average energy consumption figures from AER for a five-person household with no pool on the Energex network. Figures correct as at January 2017.
Lumo Energy once again comes out slightly cheaper than Simply. Although Simply Energy has the larger discount, that only applies to usage charges, while Lumo Energy’s discount applies to the entire bill. That said, Simply Energy offers an even higher discount to RACQ members, which might make it the cheaper retailer for some customers. Compare these costs with those of other electricity providers serving Brisbane with our Queensland electricity price comparison report.
New South Wales
Lumo Energy has taken the backseat in New South Wales to sister company Red Energy. Lumo Energy customers have been transferred to Red, while all new customers looking to sign up to Lumo in NSW are redirected to Red Energy. Meanwhile it is business as usual for Simply Energy, offering its standard two plans, plus an exclusive offer for NRMA customers.
- Simply Save: This plan comes with a 10% discount off electricity usage charges for the first 12 months when you pay on time. Exit fees apply if you leave before the 12 month benefit period.
- Simply Plus: The difference between this plan and the one above is that Simply Plus is a two-year contract, but comes with an increased 15% off usage charges when you pay on time. Exit fees also apply.
- Simply NRMA Plus: This is an exclusive offer to NRMA members in NSW, bringing a maximum pay on time discount of 18% off usage rates. It is a two-year plan with no exit fees.
While we can’t compare Simply Energy’s costs with Lumo Energy in NSW, we can show you estimated prices for five-person households with Simply Energy in Sydney and how they rate against other providers, including Red Energy, in our NSW electricity price comparison report.
How to get the best deal?
It’s clear that both Lumo Energy and Simply Energy have plenty of enticing energy offers to choose from. That said, finding the best deal might require some digging past the headline discounts and incentives, and into the price factsheets of the plans you are interested in.
Discounts can be a great way to reduce your overall costs, but only if you’re also receiving competitive base rates – it’s all about finding a plan that offers you the best overall value. Keep in mind that prices often change, meaning customers must keep vigilant and regularly compare deals to ensure they’re receiving the best offer. If you haven’t compared electricity providers in the past 12 months, then you might not be receiving the best price on electricity.