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Should You Bundle Energy With Broadband
Bundles are meant to make your life easier and provide great value. So bundling your energy and broadband plans might sound tempting. But is it really worth it?
Are bundles providing real value?
At first glance, bundles usually appear to be a good idea. They promise great deals and more convenience.
However, with every bundle deal, it’s worth reading the fine print to see if it actually costs you less at the end of the day.
What it comes down to is your personal usage. If that doesn’t align with the offering, you may run the risk of paying more than you need to.
In the energy sector, bundling your gas and electricity service is called ‘duel fuel’. It’s probably one of the most commonly used bundles out there. After all, gas and electricity go together like wine and cheese – sort of. But just because it’s bundled up doesn’t always mean it’s the best value for your needs.
Bundles like duel fuel policies commonly offer temporary discounts over the first six to 12 or even 24 months of the plan. After that, your payments default back to the full rate.
It may not be as convenient as it sounds – many providers still handle bundle services separately, meaning you still have to track two different bills.
Bundling services doesn’t guarantee you’ll receive the best rates. That’s because just one of the bundled services is usually discounted. So while one may be cheaper, the other one may be more expensive than elsewhere.
The next generation of ‘duel fuel’ discounts
The same can apply to bundling your energy and broadband service.
At the moment, the field of service providers is still relatively scarce, but offers do exist – and more keep popping up.
AGL, EnergyAustralia, Origin, Dodo and Sumo were some of the first to dip their toes into this electric current.
This is still a fairly new niche, though, so savings on bundle plans may not be as big as you think. Most suppliers offer a modest $10 to $15 off their broadband service.
Look at your usage – is your chosen bundle aligned with your broadband needs? Or would a cheaper plan plus a separate duel fuel offer end up being more cost-efficient?
Depending on your payment cycle, you can calculate the monthly or weekly costs of the life span of the plan, including your discount. This can help you get a more realistic idea of how much you’re really spending and prevent bill shock once your temporary discount ends.
For example, if you pay $65 for broadband over 24 months, but you get a $10 discount for the first 12 months, your average cost per month will be $60.
Compare competitor offers to see if you end up paying less by going to two separate plans.
Set up a direct debit to help you manage any separate bills.
Other ways to reduce your utility and broadband bills
Even if broadband and energy bundles do not meet your needs at this point, there are still other ways to help keep your utility bills at bay.
Ride the temporary discount wave. Once you’re nearing the end of your current energy plan, for example, call your provider to see if they have any other offers going. Most providers are rather keen to keep current customers on, so chances are, they’ll be agreeable.
Shop around for a new supplier. You can never go wrong with comparing your options. A competitor may have a better deal right now than your current provider, so switching could save you money in the long run.
Seek out conditional discount. Some providers will offer additional benefits to customers meeting certain conditions. However, these will cease once you stop meeting the criteria.
Pay on time. Most providers offer a small percentage off your bill when you pay by or before the bill’s due date.
Go digital. Some providers also offer a small discount on choosing to receive your bills and communication digitally to reduce paper waste.
The bottom line
Right now, bundling your energy and broadband plan may only really be worth it for a small number of people.
Crunch your numbers and go with what saves you the most, whether that is two separate providers or a bundle.
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
