Simply Energy emerges with cheap deals after Victoria price changes

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One of Australia’s fastest growing providers has kicked off the new year by slashing electricity prices in Victoria.

Simply Energy is now one of the state’s cheapest providers, offering Melbourne customers 16 per cent off the Victorian Default Offer (VDO) for households connected to the Citipower network on a single rate tariff.

The ‘Simply Blue’ and ‘Simply Movies’ energy plans have both decreased in annual estimated price by around 10 per cent.

This is welcome news for Victorians looking to kick-start 2021 with cheaper energy bills, said Canstar Blue Editor-in-Chief, Simon Downes.

“After a tough 2020, many household budgets will now be hurting, so it’s great to see Simply Energy offering customers decent savings that work out amongst the state’s cheapest,” he said. “This January is a great time for Victorian households to start saving on their energy bills.”

It comes after the VDO – the maximum price cap a retailer can charge customers who do not engage in the market – experienced a drop in price as of January 1, reflecting the lower wholesale costs of electricity across the country.

Mr Downes added that while it is normal for power companies to adjust their basic products to mirror VDO pricing, it’s another thing for retailers to slash rates on their market offers – deals that are usually already more competitively-priced.

“In Simply Energy’s case, 16 per cent off the new VDO base rate is a substantial offer. The days of huge and potentially misleading 30 to 40 per cent discounts are over and now consumers get a true idea of where the best deals can be found by following the biggest percentage savings off the VDO,” said Mr Downes. “These percentage savings will vary depending on where exactly in Victoria you live.”

Canstar Blue’s electricity database also shows notable price reductions from other retailers, including EnergyAustralia, Origin and Red Energy this January.

Simply Blue and Simply Movies are variable rate energy products, coming with a complimentary 12-month membership to NRMA Blue and 1,000 Vrewards points for cinema tickets respectively. Simply Blue replaces its predecessor ‘NRMA Blue’ and includes a 16 per cent guaranteed discount off electricity usage and supply charges for 12 months.

Existing customers on these plans will need to get in contact with Simply Energy to ensure they’re on the latest rates.

Simply Energy has also parted ways with its exclusive sporting deal, which included a $150 AFL store voucher. Existing customers on this plan may also wish to contact the retailer to discuss their options.

Recent data from Victoria’s energy regulator, the Essential Services Commission, shows that Simply Energy has grown its customer base in the state by almost 50,000 between 2016 and 2020, taking the total number of Victorian households with the retailer to more than 250,000.

Simply Energy Prices Victoria

Here are the Simply Energy plans on our database for Victoria. These are products from a referral partner†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/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.

Is Simply Energy much cheaper now?

How much can the average Melbourne household save by switching to one of Simply Energy’s offers? Check out the price changes from January 2021 below to get an idea.

Energy Plan Estimated Annual Bill Before Estimated Annual Bill After Estimated Annual Saving
NRMA Blue (renamed to Simply Blue) $1,192 $1,066 $126
Simply Movies $1,278 $1,143 $135

Annual cost assumptions are based on the Citipower network in Melbourne. These figures assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Prices accurate as of January 2021.

What happened to the VDO?

As of 1 January 2021, the maximum price that energy providers can charge customers who do not engage in the market has decreased across each distributor network in Victoria. This means all retailers must update pricing to reflect these changes, which includes advertising plans with a percentage less than, equal to, or more than the VDO.

The Victorian Default Offer was introduced in July 2019 to prevent electricity retailers from taking advantage of customers who weren’t engaged in the market and left on expensive standing offers. These customers will have since been moved to a fairer deal or price cap known as the VDO for short.

To use the VDO as a reference price when comparing plans, you’ll need to understand which energy network you live on, as the annual cost of the VDO varies between different areas of Victoria. The table below shows VDO prices across the state’s five distribution networks, based on average energy usage of 4000kWh/year.

Distributor VDO Before Jan 2021 VDO After Jan 2021 Annual Price Difference
Citipower $1,420 $1,270 $150
Jemena $1,496 $1,328 $168
Powercor $1,517 $1,368 $149
Ausnet Services $1,646 $1,507 $139
United Energy $1,508 $1,319 $189

Victorian Essential Services Commission, January 2021.

Compare Electricity Deals in Victoria

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†. Costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/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 Victoria. These are products from a referral partner†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/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 Victoria. These are products from a referral partner†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/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 Victoria. These are products from a referral partner†. These costs are based on the Citipower energy network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/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: Mark and Anna Photography/Shutterstock.com

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