Power and Broadband Bundles in NZ: When the Discount Is Real

Bundling your power and broadband with one company promises two things: a single monthly bill and a discount. Sometimes the discount is real. Just as often it hides a higher base price, or a contract that stops you moving when a cheaper deal turns up. Consumer NZ looked at this in July 2026 and reached a careful verdict — bundles can save money, but only if you check. This guide explains, in plain terms, who sells these bundles in New Zealand, what the main offers actually cost, and how to work out whether a bundle is a genuine saving or just clever marketing.

Who sells power and broadband bundles in NZ

A bundle simply means buying two services — electricity (sometimes gas as well) and home internet — from the same retailer, usually for one combined bill and a small discount. In New Zealand, Consumer NZ’s 2026 investigation splits the sellers into two groups.

• Power companies that also sell internet: Contact, Genesis, Mercury, Nova and Electric Kiwi. Their core business is energy, and broadband is an add-on.
• Internet providers that also sell power: 2degrees and Slingshot. Here it is the other way round — telco first, electricity bolted on.

The distinction matters because the “anchor” service — the one the company really wants you for — is usually where the price is set, and the other service is dangled as the sweetener. Our guide to New Zealand’s internet providers explains how the wider market fits together, including which retailers resell the same networks.

One name to watch is Now. Mercury has decided to close the Now broadband brand, which it fully bought in 2022, no later than 30 November 2026. Residential fibre customers are gradually being moved onto Mercury’s own plans, while Now’s business customers are being transitioned to 2degrees. If you are a Now customer and would rather choose your own provider, the safest move is to sign up elsewhere before the automatic transfer happens; Broadband Compare keeps a running explainer of the options.

What the main bundles look like in 2026

Two of the larger offers show how differently these deals can be built. The figures below were taken from each company’s own pages in September 2026 and change often, so always confirm the current price before you sign.

Contact Energy

Contact lists its broadband bundle from NZ$58 a month for Fast Fibre when you also take Contact’s energy. Bundling knocks NZ$5 a month off broadband when you have electricity with Contact, or NZ$10 a month with both electricity and gas, and the company has run promotional credits on the power bill for adding broadband. The plan has no fixed term and no break fees — you can cancel any time — but there is a firm condition attached: broadband is available only if Contact also supplies the electricity at that address, and you must keep that power account to keep the broadband. A modem costs NZ$4 a month or NZ$99 upfront, and a NZ$14.99 delivery fee applies (you can also bring your own modem on fibre).

Mercury

Mercury’s fibre plans are priced by speed tier: FibreLite at NZ$70 a month (about 106 Mbps down / 25 Mbps up), FibreClassic at NZ$99 (about 508 / 113 Mbps) and FibreMax at NZ$115 (about 864 / 490 Mbps), alongside wireless options. Mercury offers both open-term plans and two-year terms, and runs promotions such as 12 months of half-price broadband or a gift when you pair power with a two-year broadband term. As above, Mercury is also the retailer absorbing Now’s home fibre customers as that brand winds down.

Notice that the two offers are not really comparable line for line: Contact leads with a low bundled entry price and no contract, while Mercury sells on speed tiers and longer-term promotions. That is exactly why comparing the sticker discount alone is misleading. The table below lines up the main sellers on the details that actually decide value.

When a bundle discount is not really a discount

A number on a marketing page — “$10 off”, “10% off power” — only means something next to the price you would pay without it. Consumer NZ’s review flagged several ways a headline discount can leave you no better off, or worse off.

• The base price is higher to start with. The clearest example: 2degrees advertises 10% off power for its broadband customers, but 2degrees only sells that power bundled with broadband, so there is no unbundled price to compare against. Consumer NZ found the underlying 2degrees power rates were at least 10% higher than other options — the “discount” simply cancelled out the premium.
• The contract locks you in. Many bundles run for a year or two. If a cheaper power or broadband deal appears next month, break fees can wipe out any saving you were promised.
• The credit expires. Sign-up credits and half-price-for-12-months offers are designed to look large in year one. What matters is the ongoing price you pay once those promotions end, because that is what you live with for years.
• One service quietly drags the other. A tempting broadband price can sit on top of an expensive power rate — and for most households power is the far bigger bill, so a few dollars off broadband is easily swallowed by a poor energy rate.

How to check whether a bundle actually saves you money

The good news is that testing a bundle is straightforward if you compare like with like. Work through these steps before you switch.

1. Price the power on its own. Use Powerswitch, Consumer NZ’s free comparison tool, with your real usage from a recent bill rather than an estimate.
2. Price the broadband on its own. Get a standalone quote from a specialist internet provider at the same speed tier you actually want.
3. Add the two standalone prices together and compare that total against the bundle’s ongoing price — not the first-year promotional one.
4. Read the fine print. Check the contract term, any break fees, modem charges and delivery fees. These small numbers often decide whether the bundle wins.
5. Set a yearly reminder to repeat the comparison, as Consumer NZ recommends. Prices and promotions move constantly, and the household that switches when a better deal appears is usually the one that saves the most.

If you are unsure which speed tier to price in step two, our guide to what internet speed a household actually needs helps you match a plan to how you really use the connection.

The broadband half: speed, faults and support

One worry comes up often: is bundled broadband somehow slower or lower quality? It is not. Whoever you buy from, the fibre in the street is the same — Chorus or your local fibre company owns and runs it — and the data travels using the same standard TCP/IP internet protocols no matter which retailer bills you. An energy company reselling broadband is buying wholesale access to that network exactly like any dedicated internet provider.

Because the network is shared, the speed you get is set by the plan tier, not the logo on the bill. The Commerce Commission’s Measuring Broadband New Zealand report published on 28 July 2026 (based on testing run in April) found fibre now performs broadly in line with advertised speeds, with entry-level fibre around 105 Mbps, mid-tier plans around 510 Mbps and Fibre Max around 840 Mbps, and little slowdown at peak times. Our breakdown of what each NZ fibre tier really delivers puts those numbers in context.

What genuinely differs between retailers is the human side: the quality of support, the modem they supply and how they handle faults. Since energy retailers resell broadband, a fault still has to be passed from them to the fibre company, which can add a step when something breaks. It is worth checking how a retailer runs its help line and where it publishes outages before you commit — our outage guide lists each provider’s status page, including energy retailers such as Mercury and Contact.

Power cuts and your connection

Bundling power and broadband does not change what happens in a blackout. When the electricity goes, the fibre box (the ONT on your wall) and your modem lose power too, so the internet drops even though the fibre line itself is fine. Buying both services from one company does not add any backup. If you work from home, or someone in the house relies on a medical alarm, a small battery backup (a UPS) keeps the ONT and modem running through short outages. Our Auckland connectivity guide explains how to check power and broadband faults side by side so you know which one has actually failed.

Switching without a gap in service

If your comparison points to a better deal, moving is usually smooth. Broadband switches are coordinated between the old and new retailers so there is rarely more than a brief drop, and you often keep the same fibre connection in the wall. Power switches happen on paper and do not interrupt supply at all. Two things are worth checking first: whether you are still inside a fixed term that carries a break fee, and whether the modem you have is locked to your current provider or one you can reuse. If you need new hardware, our explainer on the difference between a modem and a router covers what each box does and when a bring-your-own device works.

So, who should bundle?

Bundling suits people who value one simple bill and are happy to review it once a year, and it can genuinely pay off when the combined ongoing price beats buying each service separately. It suits you less if you want to chase the cheapest power and the cheapest broadband independently, or if a long contract would trap you at a mediocre rate. The rule of thumb from Consumer NZ holds up: treat every advertised discount as a claim to be tested against your own usage, not a saving you can assume. And because the energy portion is usually the larger bill, a bundle that is built around a strong power rate will almost always beat one sold on a flashy broadband discount.

Disclaimer: This article is general information about consumer utility plans, not financial advice. Prices, credits, promotions and contract terms are those published by the retailers, Consumer NZ and the Commerce Commission during 2026 and change frequently; always compare current offers against your own power usage before switching.

Frequently asked questions

Are power and broadband bundles cheaper in New Zealand?

Sometimes. Consumer NZ’s 2026 conclusion was “maybe, but be careful”. A bundle is only cheaper if its ongoing price beats buying power and broadband separately, so compare the two before switching rather than trusting the advertised discount.

Which companies sell power and broadband together?

Contact, Genesis, Mercury, Nova and Electric Kiwi are power companies that also sell internet, while 2degrees and Slingshot are internet providers that also sell power. The service each company leads with is usually where its price is really set.

Do these bundles lock you into a contract?

Some do and some do not. Mercury offers both open-term and two-year plans, while Contact’s bundle has no fixed term and no break fees but requires you to keep your electricity account with Contact. Always check the term and any break fees before signing.

Is bundled broadband slower than a standalone plan?

No. Energy retailers resell the same Chorus or local fibre network as everyone else, and your speed is set by the plan tier, not the retailer. The Commerce Commission’s 2026 testing found fibre performing close to advertised speeds regardless of who bills you.

What happens to Now broadband customers?

Mercury is closing the Now brand no later than 30 November 2026. Residential home fibre customers are being moved to Mercury, and Now’s business customers are being transitioned to 2degrees. If you would rather choose your own provider, sign up elsewhere before the automatic transfer.