Is now the time to fix rates in NSW? Red Energy thinks so

Advertisement

Red Energy is inviting customers in New South Wales to fix their electricity rates, despite wholesale prices falling significantly over the past year.

Once a variable rate offer, the Living Energy Saver is now a fixed rate plan in NSW, allowing residents to lock in competitive usage and supply charges until 31 March 2022.

General Manager of Sales at Red Energy, Ramy Soussou, said that locking in rates could give many customers peace of mind during the current economic climate.

“We wanted to provide customers with some certainty and reassurance at a time where there has been so much uncertainty. This is a win for the customer who will get a guarantee on pricing but will not be locked into a contract if their situation changes,” he said.

Canstar Blue Editor-in-Chief, Simon Downes, said fixed rate energy plans are a good option for households nervous about future price hikes, but are unlikely to deliver the cheapest possible deals because prices move so frequently.

“This fixed price guarantee from Red Energy may give bill-payers some reassurance, and given the plan has no exit fees or lock-in contracts, there isn’t much to lose,” he said. “Though, to make sure you’re getting the best value you can, you will need to keep your eyes on the market and watch out for new competitive offers when they become available, which they probably will.”

Mr Downes explained that ongoing reductions in wholesale prices could see providers slash rates further in the near future, but not to bank on them.

He added: “Keep in mind that retailers have been buying wholesale electricity at much lower costs recently. So, locking in rates at a time where wholesale prices are low could mean customers miss out on companies passing on further savings in line with the market conditions.

“No one wants to switch power plans every couple of months, but the reality is that if you’re only concerned about getting the cheapest prices, you need to be willing to.”

A report by the energy regulator recently revealed that wholesale prices have fallen by up to 48 per cent, however Canstar Blue research found the majority of these savings have not been passed onto customers.

Red Energy’s move to fixed rates comes after a healthy price reduction on all of its plans across New South Wales. For Sydneysiders living on the Ausgrid network, Red Energy has slashed prices by about six per cent – meaning an annual saving of about $80.

Living Energy Saver also includes Red Energy’s rewards program, offering customers thousands of exclusive deals on gift cards, restaurants and entertainment.

It’s believed existing customers will not automatically get the cheapest rates but can contact Red Energy to request them.

Red Energy Prices NSW

Here are the Red Energy plans on our database for NSW. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Compare Energy Plans in NSW

See how Red Energy compares by checking out some of these NSW deals. To unlock a range of plans and prices based on your area, use our comparison tool.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. The next three tabs feature products exclusively from AGL, EnergyAustralia and Origin.

Here are the AGL Energy plans on our database for NSW. These are products from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are the EnergyAustralia plans on our database for NSW. These are products from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are the Origin Energy plans on our database for NSW. These are products from a referral partner†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.


Image credit: Leonid Andronov/Shutterstock.com

Share this article

Advertisement