Insurance company RACV has extended its reach into the energy sector in its home state of Victoria with the launch this week of a retail electricity offer, in partnership with Energy Locals.
The new product, called Arcline by RACV, was unveiled in Victoria on Wednesday, offering Energy Locals’ trademark combination of fixed wholesale retail rates and a “transparent” fixed monthly fee, as well as carbon offsets for all usage and the option to source green power.
Energy Locals launched in NSW in 2017 with a broad plan to “kill the traditional energy model from within,” obtaining a retail licence for the dual purposes of “not screwing customers” while also allowing disruptive business models and technology companies to access the market.
This has so far included partnerships with Tesla, for the US electric vehicle and battery maker’s virtual power plant in South Australia, and more recently with iO Energy, an SA-based energy tech start-up offering customers the opportunity to pay less for clean energy by becoming smarter consumers.
Through these partnerships and through its direct retailing business, Energy Locals is currently edging towards 100,000 customers in total.
“RACV and Energy Locals are very much aligned on delivering quality products and services for customers, in moving the market away from the traditional energy retail model and being a customer champion,” said Energy Locals CEO Adrian Merrick on Wednesday.
RACV, which started out in 1903 as a Victorian motoring and mutual organisation that offered (and still does) roadside assistance, in 2019 committed to a transition to 100% renewables for all its clubs, resorts and office buildings, through a mix of on-site solar and an off-take deal with the retail arm of Snowy Hydro, Red Energy.
The company’s move into retailing in Victoria – RACV told One Step it would stick to establishing a presence in the one state, for now – builds on previous moves into the energy space, including the purchase in late 2019 of residential and commercial PV retailer and installer, Gippsland Solar.
Since then, RACV Solar – which is headed up by Gippsland Solar founder and CEO Andy McCarthy – has bought up a number of smaller regional Victorian installers including, just last week, the Merrimbula arm of Pacific Solar, and in June of last year a Bellarine Peninsula-based business called Great Ocean Solar.
RACV executive general manager of home and energy, Nicole Brasz, said the launch of Arcline was part of the organisation’s commitment to building a portfolio of products and services to help Australians transition to a cleaner energy future.
“RACV has offered Victorians a range of products in the home and energy space for a number of years now, including RACV Solar, so it makes sense for us to offer a retail energy product to continue to support RACV members and customers in the home,” Brasz said.
“Unlike traditional retailers, there is no mark-up added to our fixed wholesale rates, so Arcline by RACV provides customers cleaner energy with nothing to hide – just a simple and affordable plan, with certainty.
“It also provides an opportunity for Victorians to learn more about our industry leading RACV Solar team’s spectrum of solutions, designed to support your solar, storage and electric vehicle charging needs so we’re moving toward.”
According to the Arcline website’s plan configurator, a standard energy plan on the United Energy network in Melbourne works out at up to 13% less than the Victorian default offer, including GST and excluding any discounts from solar feed-in tariffs.
Customers signing up can also choose their mix of green power supply, anywhere from zero, to 10 per cent, 50 per cent, and up to 100 per cent.
A customer on the United Energy network who selects 100% green power would pay an estimated $106 per month, according to the configurator (including GST and not including solar tariffs), which is also calculated to be 13% below the Victorian default offer.
In line with its automotive industry roots, RACV has also made moves into the clean transport space, including a trial of hydrogen-powered tow trucks with RACV-owned subsidiary Nationwide Group and zero emissions trucking company Hyzon.
And last month, RACV led a $25 million fundraising round for Melbourne-based electric vehicle charging company Jet Charge, taking a stake in the company to help homeowners and commercial businesses with comprehensive EV charging solutions.
Sophie is editor of One Step Off The Grid and editor of its sister site, Renew Economy. Sophie has been writing about clean energy for more than a decade.
