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A trusted, fair and transparent energy plan is set to hit the South Australian market later this year as the state’s largest member-based organisation gets ready to launch RAA Energy.
The move comes after a recent Australian Consumer and Competition Commission (ACCC) inquiry found most residential customers are paying more than they should for electricity, and called into question some of the practices used to entice consumers in the energy market.
The ACCC’s December inquiry into the National Energy Market[1] showed:
Chief Executive Officer Nick Reade says RAA will be providing a trusted, fair and transparent energy plan for South Australian households.
“We have more than 800,000 members and connect with over 70% of households in South Australia and we’re hearing loud and clear that sky-high electricity bills are putting huge pressure on household budgets,” Mr Reade said.
“When 79% of people could be paying less for their electricity – something is fundamentally wrong.
“The energy market is complex, and most people don’t have time to understand it or shop around – and that’s what the big retailers prey on.
“For many consumers, choosing an electricity provider is a ‘set and forget’ task, which means retailers compete at the point of acquisition – they’re not incentivised to keep prices competitive for existing customers.
“For instance, some retailers provide high conditional ‘discounts’ that are simply masking over inflated prices.
“Some retailers lure customers in with a competitive price only to increase it over time and just bank on them not shopping around – effectively punishing loyalty.
“These tactics have further eroded consumer trust in the energy market and just add to the complexity and frustration.”
Mr Reade said that’s why RAA will be launching an energy plan that is different to what other retailers are offering in the market.
“We think it’s time our members got a fair deal on electricity,” Mr Reade said.
“Unlike many national energy retailers, RAA isn’t out to make a profit for shareholders – our members can trust us.
“We’ll be partnering with an energy supplier to provide a trusted, fair and transparent energy plan.
“Our members will be able to access competitive electricity rates for a fixed monthly fee.
“We also want to empower our members to better understand their energy use so they can take control of their electricity use and save money.
“We’ll provide consumers a free smart meter, and over time be able to give them personalised insights, along with other benefits like solar assessments, aimed at helping South Australians reduce their energy use and bills.
“RAA Energy will be launching its everyday plan later this year, along with other energy offerings.
“Energy is so important to our future and we’re continuing to see the electrification and decarbonisation of our economy.
“RAA will be there to help our members better understand and manage their energy use, saving them money and supporting them as they choose to transition their home and car to a more electric, sustainable future.”
Based on RAA’s research which analysed almost 300 energy bills, 72% of customers could have saved money if they shopped around, with an average saving of $250 each year compared to competitive plans in the market. South Australians can register their interest and stay up to date by visiting raa.com.au/energy.
[1]Inquiry into the National Electricity Market report – December 2023 | ACCC