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.