New Zealanders switch providers as broadband & power costs rise

Broadband and power prices are rising in New Zealand as winter bills mount and consumers seek alternatives.

The latest changes to hit household budgets include a new round of broadband price increases from Spark, New Zealand's largest broadband provider, and the closure of Frank Energy, which will see customers moved to Genesis Energy. Both developments coincide with the arrival of higher winter power costs, adding further pressure for consumers already contending with the ongoing cost-of-living crisis.

NZ Compare, a utility comparison platform, has observed a sharp growth in user activity as New Zealanders respond to these increases. Over 50,000 users have visited the site so far in June to compare options for broadband, power, and mobile services, with last week alone marking record web traffic for the group.

Price rises

For many households, the recent Spark broadband price hike comes at a difficult time. The move follows similar tariff increases across the utility sector, where providers cite rising costs, often passing these directly on to consumers. These changes typically occur with limited advance notice, requiring customers to react quickly if they want to avoid higher bills.

Frank Energy's closure leaves its customers facing a forced switch to parent company Genesis Energy, which is expected to result in higher power charges for at least some households. These developments come as many people confront what are often the first and largest winter heating bills of the year.

Switching activity

In response, NZ Compare is advising consumers to take proactive steps in managing their utilities. Gavin Male, CEO of NZ Compare, said there are options available for customers looking to ease household financial pressures.

"This is exactly the time when people need to take control. Just as that first big winter power bill hits your wallet, Spark is turning up the heat with fibre broadband price increases. You don't have to sit back and take it. There are some really competitive deals out there and if you are already on a fibre broadband connection, switching provider is incredibly simple."

The company says trends in the market indicate providers are increasingly dependent on customers remaining passive, absorbing higher bills as 'loyalty taxes'. Male advocates consumers take a more active approach.

"Whether you're dealing with Spark bumping up your fibre broadband bill or a power provider charging more for the same, it's time to stop paying the loyalty tax. These companies rely on customers staying passive. The bill apathy has got to stop! By comparing and switching, you're not only saving money-you're putting pressure on the market and these companies to stay competitive."

NZ Compare operates a suite of utility comparison tools, including Broadband Compare, Power Compare, and Mobile Compare. The company reports that these platforms offer a free, fast, and transparent way for users to find plans and providers better suited to their needs and budgets.

Market dynamics

The recent movement in utility prices highlights broader challenges facing New Zealand households. As cost-of-living pressures persist, many families are seeking what relief they can by switching providers or finding more competitive plans. According to Male, each decision to switch also has an impact beyond individual savings.

"New Zealanders are savvy, and they deserve better. Every time someone switches, it sends a message to the industry. Let's stop rewarding companies for raising prices and start rewarding ourselves for making smarter choices."

The sector has seen frequent price revisions and provider reshuffles in recent years, and industry experts forecast continued competition in response to an increasingly price-sensitive consumer base.