EnergyAustralia has followed the lead of AGL and Origin in launching a new ‘No Frills’ electricity and gas deal designed to ‘take the confusion’ out of energy.
The No Frills product does away with all conditional discounts and instead opts for fixed low rates. In some cases, the plan works out cheaper than other EnergyAustralia products that still come with large discounts.
EnergyAustralia says the new offer is for customers who want a simple plan with easy to understand energy rates. The retailer’s No Frills deal follows a continuing trend away from large conditional discounts towards straightforward low rates, with AGL recently launching its ‘Essentials’ product in Victoria and then all other states, while Origin now promotes its ‘One Low Rate’ deal in Victoria.
What is the No Frills deal?
The No Frills is an electricity and natural gas deal available to residential customers in Victoria, New South Wales, South Australia, the ACT and Queensland. It offers low, fixed rates on usage and supply charges, with rates locked in for 12 months, meaning your prices won’t unexpectedly increase for the life of the contract.
There are no conditional discounts, bonuses or special perks with this deal – hence the name ‘No Frills’. Further, No Frills removes seasonal and block usage pricing, instead providing a single flat rate tariff. This way, customers know exactly how much they are paying for electricity and gas all day, every day.
Finally, there are no fees for leaving the contract. That means you’re not left out of pocket if you give No Frills a try and decide it’s not for you.
Customers on No Frills must accept eBilling and are required to pay using direct debit. This is intended to make paying your bills easy and convenient.
No Frills Electricity Prices
Despite having no conditional discounts, the No Frills electricity deal currently works out to be one of EnergyAustralia’s cheapest products thanks to its low fixed rates. Generally speaking, the No Frills deal tends to work out slightly more expensive than the Secure Saver, but cheaper than most other products from the company.
Keep in mind, however, that the Secure Saver is only cheaper if customers remember to pay their bills on time to receive the conditional discount. This makes the No Frills the cheaper product for customers who tend to fall behind on their power bills and are willing to sign up to direct debit.
Other No Discount Deals
EnergyAustralia’s No Frills deal is not unique. In fact, several other retailers have offered similar plans for some time now. These include AGL, Origin, Tango Energy, GloBird Energy and Momentum Energy.
- AGL Essentials: This plan is now available in NSW, Vic, Qld and SA. Like the No Frills plan, AGL Essentials has fixed rates for 12 months and customers do not receive a conditional discount.
- Origin One Low Rate: This deal is exclusive to Victorian customers. Rates are locked in for 12 months, there are no discounts, and customers must pay their bills using direct debit.
- Tango Home Select: Tango Energy only has two residential market offers – Tango Select and Tango eSelect. Both opt for low fixed rates over conditional discounts. Rates are fixed for 12 months and customers can choose monthly or quarterly billing.
- Momentum SmilePower Flexi: Momentum Energy’s flagship product, this does not include any ‘confusing’ discounts, again providing low rates instead. It also comes with a sign-up bonus for some customers.
- GloBird EasySave: As the name suggests, this product is apparently designed to make it easy for customers to save. It may not necessarily be GloBird’s cheapest deal, but its low rates take the hassle out of managing your power bills.
Should I sign up to a no discount plan?
Traditional market offers include discounts conditional on meeting some sort of requirement, such as paying your bill on time or paying using direct debit. Plans with discounts can offer great value, but they can also be incredibly expensive when customers fail to meet the requirements. On the other hand, no discount deals, such as the No Frills plan, are generally price-competitive, but can still be slightly more expensive than some of the best discounted market offers out there.
This means it is somewhat of a balancing act – do you choose a guaranteed competitive price on power? Or, are you comfortable that you can meet the conditions of a large discount to receive a slightly better price? Of course, that decision is up to you.