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The Simply Energy RAA Deal
Simply Energy & RAA have been promoting “special discounts” to RAA members recently. With the support of RAA It is natural for RAA members to think the Simply Energy RAA deal is a good one. Unfortunately, we understand that the ugly truth is that RAA is paid handsomely by Simply Energy for the privilege of using the RAA marketing channel for a sub-standard energy deal.
Simply Energy purchase Carbon offsets for the energy you use. That’s a good thing, right? Let’s delve a bit deeper to find out more. The table below shows for a 3 person household, the average gas usage, the tons of CO2 emissions. Simply Energy claim to comply with the Climate Active Carbon Neutral Standard. This allows for 5 different categories of carbon offsets: Australian Carbon Credit Units (ACCU); Kyoto Protocol – CERs or RMUs; VERs or VCUs.
Simply Energy use VCUs which were created in China, unlike Origin which uses ACCUs created in Australia. These VCU credits recently traded at around $4/ton (State and Trends of Carbon Pricing 2020, worldbank.org) or about 15% of the current cost of ACCUs. In principle, Energy Umpire don’t object to the use of international carbon credits, but the different rules that apply for offsets make it hard for customers to compare their value.
To compare the RAA Simply Energy offer we need to give credit to the carbon offsets included in the offer. The table below gives a guide to the value of these offsets.
|Carbon Offset Cost Estimation||Electricity||Gas|
|Usage 3 person home||5,293 kWh p.a.||26,602 MJ p.a.|
|CO2 Émissions (ton/yr)||4.29||1.66|
|Cost to Simply Energy @ $4/ton||$17.16||$6.64|
Helen’s case study
A recent new customer, Helen, asked us to compare electricity plans for her home, and we noticed how uncompetitive the Simply Energy RAA discount really was. Helen, who lives in Adelaide, saved $574 p.a. by switching from the RAA Simply Energy deal to the cheapest electricity price.
Savings available for different types of customer in South Australia
We decided to analyse different tariff types that apply commonly in South Australia.
The following table and graph show the savings available for 3 different common types of customer across South Australia.
Savings by Electricity tariff type – 3 person home in South Australia
+ Controlled Load
|Average Usage (kWh/yr)*||5293||4613||6613|
|RAA Plan Cost ($/yr)||1320||1706||1988|
|Best Plan Cost ($/yr)||960||1300||1564|
This means that an RAA member likeHelen could save from $360 – $424. That’s a massive 27% to 38% saving by getting the cheapest prices for electricity rather than the Simply Energy RAA discount in South Australia.
If you want to compare electricity, it can be challenging, particularly for customers with ToU tariffs. Peak electricity prices for Simply Energy are seasonal with higher prices in Summer.
Fortunately the Energy Umpire smart comparison tool takes all this into account and gives super accurate results.
Clint Gadsden, a Director of Energy Umpire said
“For the RAA to endorse the Simply Energy RAA deal in this way is frankly unacceptable.”
“RAA members are entitled to expect that the RAA was on their side and that the Simply Energy RAA offer was genuinely attractive”
“It sums up the what is wrong with the energy market where it seems everyone is taking commissions. Even the RAA is adopting the same sleazy behaviour.”
Energy Umpire offers a simple solution for RAA members. We compare every offer from every supplier and recommend the cheapest. We do not accept any commissions from energy companies so you get an independent comparison. When there is a cheaper price available, you’ll get it. For a free comparison and savings calculation visit our website.