3 things to think about with bundled plans
When you use the Powerswitch calculator, you’ll be asked if you want bundled plans to be included in your results. Here’s our guide to what they are, why they’re so popular and what to think about before you sign up for one.
What is a bundled plan?
A bundled plan is when you have one provider for multiple services, for example your power supplier might also be your internet or mobile phone company. There are a lot of power companies in New Zealand that now offer this option, and we know they’re popular. In our latest power company survey, around a quarter of respondents said their power plan is bundled with another utility.
Why are bundled plans so popular?
The appeal of a bundled plan is that you have just one bill and one point of contact for your utilities. But we don’t think they’re always good value.
The big downside of bundling is it prevents you from being nimble and taking advantage of cheaper deals as they come available.
Are bundled plans a good idea?
We’re not big fans of bundled plans. We think consumers are better off if they split providers. That way they can make sure they get the best deal for each service.
Even if a bundle seems like a good deal at first, it can be difficult to unbundle so you can be locking yourself out of cheaper deals that come along.
And let’s face it, with payments for utilities more commonly being paid by direct debits and automatic payments these days, is bundling really saving you that much time?
What to check before you sign up for a bundled plan
1. If you could save money by having separate providers
Powerswitch makes it easy to find the cheapest power plan for your household . You then just need to work out the cheapest price you could be paying for the other utility – such as internet or mobile service – to see if you could save money not bundling.
2. How long you’ll be locked in for
Make sure you’re prepared to be locked into all the services in the bundle for the length of the contract. You won’t be able to change to cheaper providers in this time without breaking the contract.
3. What the termination fee is
As well as understanding how long you’ll be on the plan for, it’s a good idea to know what it’s going to cost you if you want to end it earlier.
With the market always changing, it pays to check often for the best deals. We compare thousands of electricity and gas plans for free. Do a quick check to see how much you could be saving.
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