Red Energy vs EnergyAustralia: Electricity cost comparison

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While AGL and Origin dominate much of the Australian energy market, Red Energy and EnergyAustralia are two of their biggest challengers, particularly in New South Wales and Victoria. With a good mix of discounted plans and rewarding offers available, they present a viable alternative to the two big power companies. So, how do they compare and who works out cheapest where you live?

In this report, we review the electricity offers of Red Energy and EnergyAustralia across the states they serve, and show how much their plans are likely to cost you. While the names of their plans remain fairly consistent across the country, be sure to read the specific details in your state because their details and prices can vary significantly.

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Victoria

Red Energy provides two basic electricity market offers to households in Victoria, while EnergyAustralia has three options to navigate, including a fixed rate plan.

Red Energy

Both of Red Energy’s plans come on no-contract terms with variable rates, meaning the amount you are charged for electricity usage or supply can change at the retailer’s discretion.

  • Living Energy Saver: This Red Energy plan is available with no fixed term contract. It comes with a 10% discount off your entire bill when you pay on time, which is something of a rarity as most providers offer discounts on usage charges only. This plan includes access to Red Energy’s Rewards program whereby customers get cheaper deals on a number of different goods and services with selected partners. You’ll receive your bills by email and there are no exit fees.
  • Living Energy Saver Green: As the name suggests, this plan is similar to the one above, but the difference is that it includes 100% GreenPower – a commitment from Red Energy to purchase the equivalent amount of power that you use from renewable resources. This comes at an extra cost to consumers, in this case an additional 5.83 cents per kWh. Red Energy Rewards are also available with this plan, as is email billing. There are also no exit fees.

EnergyAustralia

Two of EnergyAustralia’s electricity plans for Melbourne and the rest of Victoria come with variable rates and different discounts, while the third offer allows customers to lock-in their electricity usage and supply rates for two years.

  • Flexi Saver: This plan comes with a discount of 25% off electricity usage charges for 12 months when customers pay their bills on time. While there is a benefit period, the contract is ongoing with no exit fees. it is a variable rate plan, meaning rates can be chaged at any time.
  • Anytime Saver: A more basic electricity plan from EnergyAustralia, this comes with a guaranteed discount of 34% off usage charges. It also has a benefit period of one year and there are no exit fees. This could be a good option for those who are worried about losing their discount from the above plan by not paying their bills on time.
  • Secure Saver: This is EnergyAustralia’s fixed rate electricity plan for Victoria, meaning customers will pay the same rates for usage and supply over the length of the two-year contract. Exit fees apply if you cancel the contract early. A discount of 30% is available for customers who pays their bills on time.

Who’s cheapest in Victoria?

EnergyAustralia and Red Energy offer some of the cheapest electricity rates in Victoria, but how do they compare head to head? We’ve compared the cheapest deals of each retailer to find which provides the lowest costs based on a specific postcode in the state. For a quote in your area, be sure to use our energy comparison tool.

State Provider^ Plan Discount Annual Cost*
VIC Red Energy Living Energy Saver 10% $2,431.85
VIC EnergyAustralia Secure Saver 30% $2,201.30
*Costs based on yearly usage calculation using consumption figures from the AER for a five person household on the Citipower network, May 2018.

^By clicking on a brand name, you may leave Canstar Blue and be taken to a referral partner to compare. You agree that Canstar Blue’s terms and conditions apply to this referral. If you click on a brand that is not a referral partner, you will be taken to a brand page on Canstar Blue.

Using average usage figures for a five person household, you can see that EnergyAustralia is noticeably cheaper than Red Energy, despite its plan coming with fixed rates. It’s important to understand that the biggest discount offers don’t always mean the cheapest prices, but in this case there is a clear link between discount size and overall costs. It should be noted, however, that Red Energy’s discount applies to the entire bill, while the EnergyAustralia plan applies a discount to usage charges only. While this comparison looks at the Citipower network in Melbourne, be aware that costs across the other electricity networks in Victoria can vary.

New South Wales

Red Energy and EnergyAustralia offer a similar range of plans in Sydney and the rest of NSW as they do in Victoria, but with some subtle differences.

Red Energy

Red Energy offers the same products in New South Wales as it does in Victoria. Once again, these products are no-contract variable rate deals.

  • Living Energy Saver: This Red Energy plan provides a 10% discount off your entire bill when you pay on time. You can also benefit from Red Energy Rewards, with money off things like movie and theme park tickets, as well as shopping and eating out. This is a variable rate contract and comes with a promise that Red Energy won’t increase its rates until at least December 2017.
  • Living Energy Saver Green: This is the same product as the Living Energy Saver, but comes with 100% accredited GreenPower for an extra 5.83c/kWh.

EnergyAustralia

EnergyAustralia also shakes things up for its customers in NSW with a fixed rate plan thrown into the mix alongside its two variable rate offers.

  • Flexi Saver: This variable rate plan comes with a discount of 20% off usage charges for paying your bills on time. The discount is available for 12 month but the contract is ongoing. There are also no exit fees.
  • Anytime Saver: Another variable rate power plan, the difference with this offer is that it comes with a guaranteed discount of 26% off usage rates, not conditional on whether you pay bills on time. There is a one-year benefit period, with no exit fees.
  • Secure Saver: This is EnergyAustralia’s fixed rate plan for two years. With it, customers are protected against any changes to usage or supply charges during this time. A pay on time discount of 25% is on offer for customers who pay their bills on time. Exit fees apply.

Who’s cheapest in NSW?

So, we know about Red Energy and EnergyAustralia’s electricity plans in New South Wales, but who actually works out cheapest overall? We’ve crunched the numbers behind their cheapest plans to give you an answer. To do this, we have calculated their respective usage and supply charges, and taken the savings from their conditional discounts into account. The following table shows what an average five person household in Sydney can expect to pay.

State Provider^ Plan Discount Annual Cost*
NSW Red Energy Living Energy Saver 10% $2,567.96
NSW EnergyAustralia Anytime Saver 26% $2,441.47
*Costs based on yearly usage calculation using figures from the AER for a five person household on the Ausgrid network, May 2018.

^By clicking on a brand name, you may leave Canstar Blue and be taken to a referral partner to compare. You agree that Canstar Blue’s terms and conditions apply to this referral. If you click on a brand that is not a referral partner, you will be taken to a brand page on Canstar Blue.

It may have a notably smaller conditional discount, but Red Energy’s plan is only just more expensive than EnergyAustralia’s Anytime Saver deal in NSW. Also consider that EA has a fixed rate deal for two years. You can see how these two providers compare with other energy companies in the Sydney area with our NSW cost comparison report.

South Australia

The big difference with Red Energy’s electricity plans for South Australia is that they don’t offer access to its rewards program. EnergyAustralia keeps it consistent with the same three plans as other states, making only minor changes to discounts.

Red Energy

In the case of Red Energy, you still get the opportunity of choosing between a two-year contract and no fixed term.

  • Easy Saver: The Easy Saver is an open term contract that comes with a 10% discount off your entire bill. It’s a variable rate contract and you’re free to leave any time.
  • Easy Saver Green: Just like the other states, the Easy Saver Green is identical to the Easy Saver, with the only difference being that this plan comes with 100% GreenPower for an extra 5.83c/kWh.

EnergyAustralia

EnergyAustralia offers most of the same plans as it does in New South Wales and Victoria, providing some choice for households in South Australia.

  • Flexi Saver: This time the variable rate Flexi Saver plan from EnergyAustralia brings a discount of 12% off usage charges, provided you pay on time and receive bills and other communications via email. It has a benefit term of 12 months and there are no exit fees.
  • Anytime Saver: EnergyAustralia also offers its guaranteed discount plan in South Australia, with customers able to bank on 12% off usage rates. This plan also has a one-year benefit term with no exit fees.

Who’s cheapest in South Australia?

Let’s compare the best plans from Red Energy and EnergyAustralia to work out which offers the cheapest electricity costs in South Australia. EnergyAustralia’s cheapest product is the Flexi Saver with a 15% pay on time discount, compared to Red Energy’s Easy Saver plan with 10% off when you pay on time. But which works out cheaper overall? We’ve done the maths by calculating their usage and supply charges and factored in their respective discounts. This comparison is for five person households in Adelaide with average energy consumption.

State Provider^ Plan Discount Annual cost*
SA Red Energy Easy Saver 10% $3,379.00
SA EnergyAustralia Flexi Saver 12% $3,661.81
*Costs based on yearly usage calculation using consumption figures from the AER for a five person household on the SA Power network, May 2018.

^By clicking on a brand name, you may leave Canstar Blue and be taken to a referral partner to compare. You agree that Canstar Blue’s terms and conditions apply to this referral. If you click on a brand that is not a referral partner, you will be taken to a brand page on Canstar Blue.

Despite only a modest difference in discounts, there is quite a difference in price between the two retailers in South Australia, with Red Energy cheaper by some distance. This emphasises the point that it’s important to do your homework before signing up to a new energy plan – don’t automatically assume the biggest headline discount means you’ll get the cheapest rates. Find out how these two energy providers compare to others in SA with our cost comparison report.

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Queensland

Red Energy expanded its retail service to South East Queensland at the start of 2017, adding to the state’s growing pool of electricity retailers. EnergyAustralia already has a strong market share in the Sunshine State, offering the same three plans from each of the other states.

Red Energy

Red Energy has brought to the table its Easy Saver and Easy Saver Green electricity offers.

  • Easy Saver: This is a variable rate plan with no contract term. While Queensland customers won’t have access to Red Energy’s rewards program, they do receive Red Energy’s 10% pay-on-time discount on their entire bill.
  • Easy Saver Green: This is essentially the same as the Easy Saver plan, albeit with the added option to have 100% of your electricity usage covered by the GreenPower scheme for an extra 5.83c/kWh.

EnergyAustralia

Once again, EnergyAustralia offers two variable rate plans with discounts and one-year benefit periods, as well as one two-year fixed-rate plan.

  • Flexi Saver: This plan has a discount of 20% off usage rates when you pay your bills on time, for 12 months. While the discount has a benefit period, the contract is ongoing with no exit fees. As a variable ate plan, charges can change at any time.
  • Anytime Saver: This has a guaranteed 28% discount on electricity usage, making it a wise move for those who are unlikely to pay their bills on time under the Flexi Saver. Once again, there are no exit fees and the benefit period is for one year.
  • Secure Saver: EnergyAustralia will freeze the rates you pay for electricity usage and supply for two years with this plan. It also comes with a pay on time discount of 28% for the two years. Exit fees apply if you leave early.

Who’s cheapest in Queensland?

Red Energy is a newcomer to the Queensland electricity market, so how does its Easy Saver product stack up to EnergyAustralia’s popular Flexi Saver? Once again we’ve calculated the average annual cost of a household signed up to each of these plans.

State Provider^ Plan Discount Annual Cost*
QLD Red Energy Easy Saver 10% $1,941.15
QLD EnergyAustralia Secure Saver 28% $1,916.53
Costs based on yearly usage calculation using consumption figures from the AER for a five person household on the Energex network, May 2018.

^By clicking on a brand name, you may leave Canstar Blue and be taken to a referral partner to compare. You agree that Canstar Blue’s terms and conditions apply to this referral. If you click on a brand that is not a referral partner, you will be taken to a brand page on Canstar Blue.

Our calculations suggest that EnergyAustralia is currently cheaper than Red Energy in Queensland, and keep in mind that the Secure Saver from EA offers fixed rates for two years, which could pay off further in the long run. See how these two retailers compare to others in the state with our cost comparison report.

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How to get the best deal?

Like all energy providers, Red Energy and EnergyAustralia are desperate for your custom. But to find out if you’re really getting a good deal, we suggest drilling down further into their respective electricity price factsheets for specific information about usage and supply charges. It’s also worth checking how they are rated by customers in your state, which you can do via the link below.

If you have been with your existing energy provider for two years or more, you are very likely paying more than you need to. To get the best deals on electricity, you need to be willing to switch providers every year or two, taking advantage of new highly discounted offers. The retailers want new customers and this is how they attract them. These will give you the maximum savings, but it will require a little work on your part.

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