Red Energy: Power Up Your Flights with Plans, Points, and Perks
Red Energy is Australian owned and pays Qantas Points on your power bill. If you already collect points, that is a genuine perk on a bill you were paying anyway. The question is what those points cost you in rates.
Red Energy's Qantas Red Plans: Turning Power into Points
The Qantas Red plans are the reason most people look at Red Energy.
- Bonus Points: New customers can earn up to 15,000 bonus Qantas Points for switching both electricity and gas to a Qantas Red plan and paying the first bill in full. The bonus changes periodically, so check what is on offer when you sign.
- Ongoing Points: 2 Qantas Points per $1 spent on energy, provided you pay on time. On a typical household bill that is a few thousand points a year.
- Referral Points: Existing customers earn 1,500 Qantas Points when a referred friend signs up.
You need to be a Qantas Frequent Flyer member, and joining may cost a fee. Add your Frequent Flyer number during sign-up, or link the accounts afterwards if you are already with Red Energy. Bonus points land within 21 days of your first paid bill; ongoing points within 30 days of each on-time payment.
Going Green with GreenPower and Green Tier
You can add GreenPower to a Qantas Red plan. It is a government-accredited scheme that buys accredited renewable generation on your behalf, on top of your normal supply.
It also counts as a Green Tier activity with Qantas, so if you are working towards that status, a Qantas Red plan with GreenPower ticks it off while you are paying the bill anyway.
Weighing Up the Pros and Cons
Pros:
- Qantas Points: Points on a bill you cannot avoid paying. For a regular flyer that is real value.
- Australian Owned: Red Energy is 100% Australian owned, through Snowy Hydro.
- GreenPower Option: Accredited renewable supply is available as an add-on.
- Award-Winning Customer Service: Red Energy has the Canstar awards to back the claim, though customer reviews are more mixed than the trophies suggest.
- Green Tier incentive: Counts towards Qantas Green Tier status.
Cons:
- Potentially Higher Rates: Points are not free. Price the plan against your actual usage before you decide the points are worth it.
- On-Time Payment Required: Miss a due date and you earn nothing that cycle.
- Qantas Membership: Frequent Flyer membership is required, and joining may cost you.
What to Consider Before Switching
- Compare Rates: Price Red Energy against other retailers on supply charge and usage rate, using your own consumption. Energy Made Easy or your state's comparison site will do this properly.
- Read the Fine Print: Check the eligibility conditions, the bonus point terms and the ongoing earn rate. They change.
- Consider Your Energy Usage: At 2 points per dollar, a low-usage household earns very few points. If the rates are higher, you are paying for a reward you barely collect.
- Check for Exit Fees: Find out what leaving your current retailer costs before you switch.
- Read Reviews: Look past the awards at what current customers say about billing.
The Verdict
Qantas Red works for households that already fly Qantas, use a decent amount of power, and pay on time every time. Miss any of those three and the plan is just an energy plan.
Work out the points you would actually earn in a year, put a dollar value on them, and compare that against the difference in rates. If the rates are higher by more than the points are worth, the answer is no, however good the offer looks.
