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The RACV Simply Energy Offer
The RACV has been promoting “special discounts” to their members from Simply Energy for many years.
It is reasonable for RACV members to expect that the Simply Energy RACV deal was a very good one, otherwise why would RACV promote it?
Unfortunately, we understand that the ugly truth is that RACV is paid handsomely by Simply Energy for the privilege of using the RACV marketing channel for a sub-standard energy deal.
Andrew’s case study
When Andrew approached us to compare electricity and gas for his home, we saw yet again how uncompetitive the Simply Energy RACV deal really was.
Andrew, who lives in Glen Waverley, could have saved $574 p.a. by switching to the cheapest electricity and gas prices compared with the RACV Simply Energy plan designed specifically to ‘benefit’ RACV Members.
Savings available in different towns in Victoria
It gets worse. If Andrew had lived in Northcote, he would be losing $674 p.a. by choosing the Simply Energy RACV deal than choosing the best available prices.
The following table and graph show the savings available in 4 different towns across Victoria. For the savings calculation we have Peter’s usage and electricity tariff type. There are similar savings available for other tariff types.
Savings by Energy Type and Town
| Energy Type | Glen Waverly | Northcote | Sunbury | Warrnambool |
|---|---|---|---|---|
| Electricity | $212 | $239 | $136 | $154 |
| Gas | $362 | $435 | $204 | $237 |
| Total | $574 | $674 | $340 | $391 |
This means that an RACV member like Andrew could save from $340 – $674 by getting the cheapest prices for electricity and gas rather than the Simply Energy RACV offer in Victoria.
Method
Conducting a proper comparison for electricity and gas is challenging. Electricity prices for Simply Energy RACV is seasonal with higher prices in Summer. For gas Simply Energy RACV has 3 seasons and 5 different prices each season depending on how much is used.
Fortunately the smart calculations that Energy Umpire uses take all this into account and are therefore super accurate.
RACV ethics?
Alan Rattray, the founder of Energy Umpire said
“For the RACV to endorse the Simply Energy RACV offer in this way is frankly unacceptable to me as an RACV member”
“RACV members are entitled to expect that the RACV was on their side and that the Simply Energy RACV deal was genuinely attractive”
“It sums up the what is wrong with the energy market where it seems everyone is taking commissions. Even the RACV is adopting the same sleazy behaviour.”
RACV comparison
Perhaps realising the error of their ways, the RACV recently launched a comparison service, which to their credit compares all providers.
However they receive commissions for switching customers to providers with whom they have marketing agreements. They do not calculate the savings that you would receive – in fact they really can’t tell whether you have any savings at all because they do not capture the prices that you are paying now. Perhaps worst of all, there is only a single comparison where there should be a separate comparison for the three main tariff types. Because they have obligations to providers they are unable to promote a switch if your current plan becomes uncompetitive.
Energy Umpire
Energy Umpire offers a simple solution for RACV 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.