Simply Energy’s RACV Deal is Better Than Tango’s for Big Electricity Users

This is a review of the Simply Energy Electricity Deal for RACV members with a comparison to Tango Energy

Previously when we looked at the easy to follow pricing from Tango, it appeared Tango had the best pricing possible for customers on the Powercor network in Victoria.  The pricing analysis, including looking at the Victorian Energy Compare site, showed that Tango’s electricity deal was one of the most competitive if not the cheapest.

As most retail customers pay GST, all prices mentioned include GST to hopefully provide the most meaningful numbers.

Recently Simply Energy has increased it’s discount on Electricity supply for RACV members from 40% to 45%.  The headline discount numbers do not have much meaning without baseline line usage prices in cents/kWh to apply the discount to.

Unfortunately it appears the base usage rates from Simply Energy have increased from 29.106c/kWh in June 2018 to 31.768c/kWh more recently.  The net effect (of the smoke and mirrors from the marketing department) is usage costs have not changed at all.  Net usage costs went from from 17.464c/kWh to 17.472c/kWh which is in fact an increase but not an increase worth talking about.

What has changed since June 2018 from Simply Energy is the supply costs on the Powercor network which went from $1.2765/day to $1.2089/day  or a decrease of 6.76c per day or $24.67 per year.

What is the daily supply charge of Tango Vs Simply Energy?

Most if not all electricity retailers do not apply discounts to the daily supply charge.  The supply charge is depends on the network distributor.  Regional areas tend to have higher supply charges when compared to city areas.  Generally there is more infrastructure, power lines and transformers, required to service the longer distances in regional areas and they are also servicing less people.

For example Simply Energy’s daily supply rates for the Citipower area in and around Melbourne are $1.09582 vs $1.2089 for the Powercor area of Western Victoria being a 10% increase for the regional area.

Tango’s daily supply charge as at 12 June 2018 on the Powercor network is the lowest at $1.056 compared to Simply Energy’s daily supply charge of $1.2089 – a difference of 0.1529c per day or $55.81 per year.

What is the usage price of Tango vs Simply Energy after discounts?

When it comes down to the usage price in cents per kWh on the single rate pricing plans (also called the Peak Only rate) Simply Energy’s rate is $0.1747c per kWh and Tango’s is $0.1863c per kWh.

Tango has a lower daily supply (14% lower) and a higher usage price (7% higher per kWh usage price).  Or put another way Simply Energy has a higher daily supply charge and a lower usage price.

Overall Tango is cheaper up to around 13kWh usage per day.  13kWh would represent moderate usage for a 4 bedroom household.

Simply Energy’s lower per kWh usage costs create more benefit as usage increases beyond 13kWh per day.  If air-conditioners are in heavy use regularly then Simply Energy’s 45% RACV discount plan would probably be of benefit over a year.

What are Tango’s Terms and Conditions like Compared to Simply Energy’s Terms and Conditions.

Connection and disconnection are cheaper with Tango.

You don’t have to be an RACV member to get Tango’s plan.  Simply Energy is attempting to make a competitive market offer look special by attaching more conditions, more conditions that might one day catch you out.  Whereas Tangos plan is more of a here it is, and there are no catches.

Tango has committed to keep rates fixed for 2 years, Simply Energy has stated they can change the rates when they like, this could mean prices could do down during the 2 year term also, but that scenario seems unlikely with a captive customer base.

Both Tango and Simply Energy offer a $50 first bill credit when you sign up.

 

Tango Offers Some of the Best Electricity Plans for Geelong and Western Victoria (via Powercor)

Tango’s Electricity Prices are one of the best in Geelong and Western Victoria

Tango offers one of the best electricity offers in Geelong when compared to AGL and Dodo electricity in the Powercor Western Regional Victoria area.

Unfortunately as at December 2018 Tango Energy does not have an online sign up, to sign up requires calling on 1800 010 648.  The time to sign up is only about 10 minutes and a good 5 minutes of that is the waste of time common sense blurb about the cooling off period and your rights.

Here we compare Tango’s prices with Simply Energy’s RACV plus plan.  Tango compares well with fewer conditions to be met (eg you don’t need to be an RACV member).

Tango electricity plans offer very transparent ‘zero discount’ pricing.  Which means instead of applying a headline discount rate to a usage rate to then get the real or net rate in c/kWh, Tango displays the net rate upfront with no ‘% discount’ to be applied.

If you sign up under the “Home eSelect” which includes paperless bills and direct debit payments, you will also get a $50 sign up credit www.tangoenergy.com/forhome

In the table below all prices include GST and are correct from Tango’s Energy Price Fact Sheet of 12 June 2018.   Any queries about the pricing please let us know at info@switchandsave.com.au.

The pricing is straight forward with a daily supply charge of $1.056 per day and a usage charge of 18.634c per kW.

Tango Electricity Price Comparison for Western Victoria

The Powercor western Victoria region includes Geelong, Colac, Mildura, Echuca, Cobram, Shepparton, Bendigo, Kyneton, Ballarat, Horsham and Warrambool.

Use this table to compare costs with your current electricity bill.

kWh usage per daySupply charge in cents per kWUsage charge in cents per kWSupply + Usage in cents per kW1 day cost $30 day cost $90 day cost $
5$0.210.18634$0.40$1.99$59.63$178.89
6$0.180.18634$0.36$2.17$65.22$195.66
7$0.150.18634$0.34$2.36$70.81$212.43
8$0.130.18634$0.32$2.55$76.40$229.20
9$0.120.18634$0.30$2.73$81.99$245.98
10$0.110.18634$0.29$2.92$87.58$262.75
11$0.100.18634$0.28$3.11$93.17$279.52
12$0.090.18634$0.27$3.29$98.76$296.29
13$0.080.18634$0.27$3.48$104.35$313.06
14$0.080.18634$0.26$3.66$109.94$329.83
15$0.070.18634$0.26$3.85$115.53$346.60
16$0.070.18634$0.25$4.04$121.12$363.37
17$0.060.18634$0.25$4.22$126.71$380.14
18$0.060.18634$0.25$4.41$132.30$396.91
19$0.060.18634$0.24$4.60$137.89$413.68
20$0.050.18634$0.24$4.78$143.48$430.45
21$0.050.18634$0.24$4.97$149.07$447.22
22$0.050.18634$0.23$5.16$154.66$463.99
23$0.050.18634$0.23$5.34$160.25$480.76
24$0.040.18634$0.23$5.53$165.84$497.53
25$0.040.18634$0.23$5.71$171.44$514.31

Who owns Tango Energy?

Tango Energy is based in Geelong, Victoria and is the retail arm of Pacific Hydro.   Pacific Hydro is a wind and hydro renewable energy provider based in Melbourne, Victoria.

Contact details for Tango Energy

Email support@tangoenergy.com or phone 1800 010 648.

What distributors and areas does Tango Energy cover?

Tango covers Victorian and South Australian gas and electricity customers via several distributors including Ausnet (eastern regional Victoria), Citipower (CBD and Inner suburbs of Melbourne), Jemena (North West Melbourne), Powercor – Western Regional Victoria, United Energy – South Eastern Melbourne ans Mornington Penisnsuala.

 

 

Simple Pricing and Good Deals from Pacific Hydro and Red Energy

Pacific Hydro has some nice and easy to understand pricing and great offers for Victorians see energythatcould.com.au/energy-plans/pricing-fact-sheets/

Red Energy redenergy.com.au/epis/quoteUi/ also has some good pricing, the peak/ off-peak option is probably best avoided as peak time is defined as 7am to 11pm.  Unless you are nocturnal this is unlikely to suit when you are actually awake and needing to use electricity.

Dodo 20% Off Electricity Offer (For NSW residents Only)

Discount off Dodo market usage rates on an automatic payment plan when paid on time. Rebates deducted from usage before discount applied. Subject to location and meter configuration. Offer only available in New South Wales. $100 offer is only available for new customers who quote promo code DPG#FIRSTBILL during sign-up. Offer entitles you to $100 credit on your first bill. Offer not transferable or redeemable for cash. Energy price fact sheets available at dodo.com/pfs – see if product is right for you.

Lets see if it stacks up when we standardise the supply charge into the cents per kilowatt hour and compare against our 10, 15, 20, 25 kw.

 

 

Switching Electricity Supplier to Save Money

Electricity price comparison comes down to one number, cost per unit of energy consumed, or cost per kilo watt (kW).  Unfortunately for retailers if it came down to one number all the ‘products’ would look the same because essentially they are all selling the same product.

So marketers introduce price differentiation – they know they have the same product but lets try and make it look different.

When you buy power you are buying the energy you consume and also a proportion of cost to maintain the network.  If you dont have solar power getting electricity is very convenient you connect a cable to your house and the rest is up to the provider.

With solar power you are responsible for the roof panels, the inveter, the connection to your house and the batteries if you have them.

Daily supply costs, to covert daily supply to an average cents per kilowatt divide it by average daily usage.  So if daily supply cost is 1.40 and average usage is 20 kW per day then it adds 7c per kW to the actual kW charge.

Electricity charging is all about one number kW h

Electricity provided to your house from an energy distributor is the same irrespective of who you buy it through.  To make it look different they price it differently or marketing teams at each retailer create price differentiation.

Unfortunately, it’s like trying to get more pay from your current employer the best bargaining position you can put yourself in is to make it clear that you don’t need them and you have an alternative to them, for example another job.

The same applies with many suppliers like, mobile phones, gas and electricity, if you can clearly show you have a better alternative they are forced to act or lose business.  The twisted part is some of the energy companies won’t believe you until you do it and then you can leave come back as a ‘new’ customer and they feel like they have done a better job.  From a consumer perspective it does appear sometimes to be a massive waste of their energy!

Powercor, now has a customer web portal which allows you to send your smart meter data directly to Victorian Energy Compare, allowing for the most accurate comparisons. More information https://compare.switchon.vic.gov.au

New Entrants to the Electricity Market Since Deregulation

electricitywizard.com.au

iselect.com.au/electricity-and-gas

youcompare.com.au/energy

lumoenergy.com.au

energywatch.com.au/compare-energy

energyaustrala.com.au – pretty cool online app

directconnect.com.au

dodo.com.au

boc.com.au

dodo.com.au/no-lock-in-contract 1300 431 871 claims a % discount, not really useful until you know its a % off what?

Need to call makeitcheaper.com.au claims to compare ERM, AGL, Energy Australia, Momentum, alinta energy, simply energy, actewagl, sumo power, origin , next business energy, power direct.

Need to call goswitch.com.au compares, AGL, ACTEW AGL, Power Direct, Click Energy, Dodo Power and Gas, Powershop, Online Power and Gas.

electricitywizard compares agl, alintaenergy, energyaustralia, erm business energy, lumoenergy, momentum energy, nextbusiness energy, origin, powerdirect, powershop, sumopower