Red Energy Review 2025: Are you in the Red?

Estimated reading time: 6 minutes

Red Energy has established itself as a prominent player in Australia’s energy market, known for its Australian ownership and customer-focused approach. However, with rising energy costs, many households are looking beyond brand names to find genuine savings. Let’s dive into a comprehensive review of Red Energy Australia and see how it stacks up against the competition.

Red Energy Australia Review Summary: Quick Facts

• Average Annual Electricity Cost: $2,135 (15% higher than market’s cheapest)
• Average Annual Gas Cost: $1,649 (15% higher than market’s cheapest)
• Potential Savings Elsewhere: $146 to $415 /year on electricity; $178 to $610 on gas
• Customer Rating: 1.8 / 5 based on recent customer feedback. Unfortunately for Red Energy, that’s a fail.
• Best For: Customers seeking Australian-owned providers with added perks like loyalty rewards

Who is Red Energy?

Red Energy entered the Australian market in 2004 as a wholly Australian-owned subsidiary of Snowy Hydro. The company now provides both electricity and gas services across New South Wales, Victoria, Queensland, South Australia, and the Australian Capital Territory. Their ownership by Snowy Hydro gives them a connection to renewable energy, though they maintain a mixed generation portfolio of gas and hydro.

Red Energy’s Plan Options

Red Energy differentiates itself through varied plan benefits rather than just different rate structures. Their core offerings include:

• Living Energy Saver: A standard market offer with competitive rates and flexible billing options.
• Qantas Red Saver: Offers Qantas Points for energy bill payments
• Red BCNA Saver: Contributes to Breast Cancer Network Australia
• Red Wildlife Saver: Supports Taronga Conservation Society Australia
• Red Solar Saver: Enhanced feed-in tariffs for solar customers
• Red EV Saver: Benefits for electric vehicle owners

The Savings Reality: What Energy Umpire’s Comparison Data Shows

The true value of independent energy comparison becomes evident when examining potential savings in today’s market. While Red Energy is not market leading for value, for customers who prioritize their specific benefits, their plans could be worth a closer look. However we show that many Australians could save substantially by exploring the entire energy landscape.

Red Energy provides electricity and gas services across New South Wales, Victoria, Queensland, South Australia, and the ACT. The company is known for its 100% Australian-based customer service and a range of plans that include rewards like Qantas Points and charitable contributions.

While Red Energy markets itself as a premium provider with unique perks, our analysis shows that these benefits often come at a higher cost compared to other providers.

While Red Energy markets itself as a premium provider with unique perks, our analysis shows that these benefits often come at a higher cost compared with other providers.

Comparing Red Energy to the Cheapest Energy Plans

Our review of Red Energy’s electricity rates reveals that they are consistently more expensive than the cheapest plans available in the market. Below is a comparison of Red Energy’s rates versus the most competitive options. All comparisons are based on the average consumption of a 3 person household in the Region or town cited.

Note: These figures are illustrative and based on average usage. Actual savings may vary depending on your specific circumstances and location.

Red Energy Qantas review
Red Energy’s Qantas Red Saver plan offers Qantas Points as a reward, but the value proposition is questionable:

1. Sign-up Bonus:
   • Electricity: 10,000 points
   • Gas: 5,000 points
   • Total: 15,000 points (barely enough for a Sydney to Melbourne flight)
2. Ongoing Rewards:
   • 2 Qantas Points per $1 spent on bills
   • Average annual bill for electricity: $1,700
   • Points earned annually: 3,400
3. Long-Term Value:
   • One-way flight to Los Angeles: 41,900 points
   • Time to earn: Over 12 years of bill payments
4. Cost Comparison:
   • Red Energy’s rates are a lot higher than cheaper providers
   • Additional cost often exceeds the value of points earned

Conclusion: While earning Qantas Points may seem attractive, the higher energy costs and minimal point accrual make this plan an expensive way to chase rewards. Customers are likely better off choosing a cheaper energy plan and finding more efficient ways to earn Qantas Points or just pay for flights out of their savings.

Why Red Energy Plans are often not the Best Choice

Why Red Energy Isn’t the Best Choice

While Red Energy offers some attractive features like Australian ownership and rewards programs, though it should be noted that most energy companies are also Australian owned, there are several reasons why it may not be the best choice for your household:

1. Higher Costs

Red Energy’s plans are consistently priced above market-leading offers. The quantum of overpayment by State and fuel is set out below.

• In NSW average households would save $130 on electricity and and $184 on gas per year.
• In Vic average households would save $312 on electricity and and $443 on gas per year.
• In QLD average households would save $340 on electricity and and $44 on gas per year.
• In SA average households would save $360 on electricity and and $88 on gas per year.

2. Paying for Perks

Their plans often include added perks like Qantas Points or charitable contributions. However, these benefits come at a premium cost. If your primary concern is saving money rather than earning rewards or supporting causes through your energy bill, there are better options available.

3. Customer Service Review a Cause for concern

While Red Energy has historically been praised for its customer service, recent data shows increasing wait times and complaint rates. This decline in service quality may impact your overall experience.

The Better Alternative: Independent Comparison with Energy Umpire

Instead of settling for Red Energy’s offerings, consider using Energy Umpire’s independent comparison service. Here’s why it’s a superior approach:

1. Comprehensive Market Analysis: We examine all available plans, not just a select few.
2. Unbiased Recommendations: Our suggestions are based on saving you money, not earning commissions.
3. Tailored to Your Needs: We consider your specific usage patterns and preferences.
4. Ongoing Monitoring: We continually check for better deals, ensuring you always have the best rates.

You won’t be in the Red with Energy Umpire (unless it stacks up)

Our data consistently shows that households save an average of $475 annually by switching to the most competitive offers we identify. That’s $40 per month back in your pocket – significantly more than the savings you’d likely see with Red Energy.

Conclusion: Look Beyond Red Energy for True Savings

While Red Energy’s Australian ownership and unique perks may be appealing, they often come at the cost of higher energy bills. In today’s economic climate, every dollar counts. By using Energy Umpire’s independent comparison service, you can access truly competitive rates and potentially save hundreds each year.

Remember, the energy market is dynamic, with prices and offers changing frequently. Regular comparisons through our service ensure you’re always getting the best deal, not just a familiar brand name.

Don’t settle for Red Energy’s middle-of-the-road pricing. Let Energy Umpire help you find a plan that truly maximizes your savings without compromising on service quality. After all, when it comes to your energy bills, there’s almost always a better choice than Red Energy – and we’re here to help you find it.

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