Red Energy energy

Among the electricity and gas providers catering to Aussies living on the east coast, Red Energy stands out as a subsidiary of Snowy Hydro Limited. Although electricity retailers today supply electricity from renewable resources, they tend to source it from solar and wind energy farms, rather than hydroelectric plants. Red Energy is different in that respect.

Some Red Energy electricity plans also include a promise to match the volume of electricity a customer generates with the company’s own contribution. 

Notwithstanding these eco-friendly options, customers comparing Red Energy plans with those offered by other retailers should check the electricity and gas rates available in their area.

Red Energy has been offering electricity and gas plans since 2004. As of 2019-2020, it says it serves about five per cent of residential electricity customers and just over three per cent of residential gas customers in Australia. 

At present, customers in the Australian Capital Territory (ACT), New South Wales (NSW), parts of Queensland, South Australia, and Victoria may find Red Energy offering services in their postcodes. 

Typically, the retailer offers three residential electricity and gas plans in most areas, but NSW customers have an extra plan to consider. Note that the details of each plan can vary, and customers need to check which offers are currently available in their postcode. 

• Living Energy Saver: Victorian customers choosing this plan can access Red Energy Rewards comprising over 4,500 discounts offered in partnership with Frequent Values. In NSW and ACT, this plan offers customers a “$500 Power on Promise”. They get a $500 electricity bill credit if they request a connection transfer by noon on a weekday when moving houses and the transfer is not completed by the following day.
• Qantas Red Saver: As the name suggests, customers get bonus Qantas points if they are members of the airline’s frequent flyer program. Suppose a secondary account holder is mentioned on the Red Energy contract. In that case, that person can take advantage of this offer if they have a frequent flyer membership instead of the primary account holder. Although the plan is available in all areas served by Red Energy, the terms are different for ACT dwellers than residents of the four states. 
• Red EV Saver: Owners of electric vehicles may find this plan more suitable, as it includes a waiver on usage charges for electricity used during the weekends from 12:00 PM to 2:00 PM. To qualify for this plan, customers must have an electric vehicle registered at the same address for which they are buying the Red Energy plan. Further, ACT customers are also offered the $500 Power On Promise. Customers living in NSW can’t sign up for this plan.
• Red Solar Saver: Available only for NSW customers, this plan offers a higher solar feed-in tariff along with Red Energy Rewards and the $500 Power on Promise.
• Red Taronga Saver: This plan is also offered in NSW alone and includes a Taronga Zoo Sydney and Taronga Western Plain Zoo Dubbo membership for one adult and two children. Customers also get a chance to enter the Ultimate Wildlife Competition. 

All these plans are available to current Red Energy customers who’re moving houses, as well as customers signing up for the first time. Depending on where the customer lives, they may be able to also choose from one of the following options.

• Block Tariff: Included in some Red Energy electricity plans and almost all gas plans, this type of tariff involves a decreasing per-unit usage charge with increasing usage. While electricity tariffs come with up to two rate blocks, gas tariffs can comprise up to six rate blocks. Customers usually don’t need to install a special electricity or gas meter to claim this tariff.
• Time-of-use Tariff: This tariff lets customers bring down their electricity bills by focusing their consumption during specific hours of the day or days of the week. For instance, daytime hours on weekdays may be considered the peak demand period, with morning and evening times on weekdays and all day on weekends classified as shoulder periods, and all night-time hours off-peak periods. In some areas, the time-of-use tariff could be combined with the block tariff, offering customers some flexibility in terms of the usage billed as peak, shoulder or off-peak demand.

Note that customers also have to pay a fixed supply charge for their electricity and gas connections, which varies across different distribution networks. Also, there may be additional charges for disconnection and reconnection or special meter readings, which are again determined by the distribution networks and passed on by Red Energy.

All Red Energy electricity and gas plans offer customers a solar feed-in tariff. NSW customers can also choose the Red Solar Saver plan, which provides a significantly higher feed-in tariff. Customers switching to Red Energy from a retailer offering a solar feed-in tariff can continue to get the same tariff. Claiming this tariff and any government rebates requires installing a photovoltaic panel system on your property and getting it connected to the distribution network supplying electricity. Customers should confirm that they are eligible for a solar feed-in tariff before signing their Red Energy contract.

Apart from solar feed-in tariffs, Red Energy also offers customers Green Power or electricity generated from renewable sources. However, this may involve an extra cost and requires customers to add it to their plan when signing up or changing their existing plan to one that includes Green Power. The additional cost of Green Power covers the purchase of Renewable Energy Certificates, which offset the customer’s electricity usage. Green Power is available in all areas where Red Energy offers its services. 

Even if customers don’t opt for Green Power, they may choose a plan comprising a “Renewable matching promise”. Under this promise, Snowy Hydro Limited will generate one unit of electricity from renewable sources for every unit of electricity purchased by Red Energy customers. For instance, customers in NSW could choose the Living Energy Saver, Red Taronga Saver, or Red Solar Saver plans, which each come with the Renewable matching promise.

Existing Red Energy customers who are finding their energy bills somewhat unaffordable should discuss their difficulty with the retailer and see if they can choose from the various options available for dealing with financial hardship. 

One option involves signing up for EvenPay, Red Energy’s bill smoothing arrangement, which allows customers to choose a fixed amount that can be directly debited every week, fortnight, or month. Customers can also set up a payment plan that coincides with the date they receive their salary or other payments or get the bill-paying deadline extended.

Customers can also speak to Red Energy to find out about government assistance programs, rebates, and concessions for which they may be eligible, as these can be credited to their electricity bill. 

Red Energy also offers assistance for customers facing family violence, which can affect their ability to pay for electricity or gas. 

Further, Red Energy allows customers to pay their energy bills through CentrePay, which those receiving Centrelink Payments can opt for. However, customers should contact Red Energy before they miss any payments to avoid having to pay penalties.