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Motoring clubs and Simply Energy
Simply Energy has marketing arrangements with motoring clubs in SA, QLD and NSW (RACQ, NRMA, RAA). RACV terminated their arrangement with Simply Energy recently perhaps because Energy Umpire exposed what a poor deal it was. The RACQ has been promoting Simply Energy RACQ offer to their members since 2012. Canstar review motoring club deals but their review is lame as they receive commissions from Simply Energy.
The RACQ Simply Energy Offer
It is reasonable for RACQ members to expect that the Simply Energy offer was a very good one, otherwise why would RACQ promote it? Unfortunately, we understand the ugly truth is that RACQ is paid handsomely by Simply Energy for the privilege of using the RACQ marketing channel for a sub-standard energy deal.
Let’s examine how it works. You sign up to Simply Energy quoting your RACQ membership number. After 1 year, your account is credited with a loyalty bonus of $160, and after subsequent years there is an annual loyalty payment of $60. Note that at any time Simply Energy can change your prices, and can change the price that they offer to new customers independently of changing your prices. If you feel you can trust an energy company perhaps you could count this credit. As the credit is so far into the future, and of doubtful value, we note it but discount it.
Nick’s case study
Nick is from Broadbeach Waters, where he lives with his wife and 2 children and has a pool. He asked us to compare electricity deals for his home. He could have saved $299 p.a. by switching to the cheapest electricity price compared with the RACQ Simply Energy plan designed specifically to ‘benefit’ RACQ Members.
What about other types of customers in Queensland?
Ravi from Apsley has a wife and 3 teenage children. Ravi would be $362 p.a. better off with the best available prices than with Simply Energy deal.
Laura is from Ipswich and is a single parent with 2 children. Laura despite having a smaller household would be $447 p.a. better off choosing the best available prices than the Simply Energy offer.
Savings by Customer and Town
This means that an RACQ member like Nick, Laura and Ravi could save from $300 – $450 by getting the cheapest prices for electricity rather than the Simply Energy RACQ offer in Queensland
RACQ ethics?
“For the RACQ to endorse the Simply Energy offer in this way is frankly unacceptable to me as an RACQ member” Laura said
“RACQ members are entitled to expect that the RACQ was on their side and that the Simply Energy RACQ deal was genuinely attractive”
“It sums up the what is wrong with the energy market where it seems everyone is taking commissions. Even the RACQ is adopting the same dodgy behaviour.”
Get the Best Electricity Deals in Qld
Energy Umpire offers a simple solution for RACQ members. We compare every offer from every supplier and recommend the cheapest. We do not accept any commissions from suppliers so you get an independent comparison. When there is a cheaper price available, you get it. For a free comparison and savings calculation visit our website.