2degrees Launches Electricity: How Bundling Can Help You Save on Broadband!

Kiwi telco 2degrees has officially entered the electricity market, offering it to new broadband customers upon sign-up. And as a reward for doing so, you’ll score a nice discount on your broadband plan. Plus, if you’ve also got your phone plan with 2degrees, you’ll save even more.

In fact, by bundling all three, you could score yourself a Fibre Broadband plan for just $45/month! And better yet, that plan includes benefits like free Amazon Prime Video for a year, and a $100 Prezzy card upon sign-up! Plus you can upgrade to Fibre 900/500 for just $60/month!

Not only is this the cheapest Fibre Max/Pro plan on the market (excluding customers who take out their electricity, broadband, phone plan and home and contents insurance with Slingshot), but it’s cheaper than almost every Fibre 300 plan on the market, too!

While that sounds like a great deal on broadband, the true test of value comes from how much you pay for everything else. How does the phone plan and, importantly, the new electricity plan compare to what’s on offer elsewhere?

Canstar takes a look at 2degrees electricity, and how you can get the best deal on your utilities.

2degrees electricity: what’s on offer?

First things first, 2degrees only offers electricity as a broadband bundle. So you can’t get it as a standalone product. Although you can add electricity regardless of whether you choose a fixed- or open-term broadband plan.

Adding electricity to your 2degrees broadband plan nets you an instant $20/month discount. So, assuming the electricity plan on offer from 2degrees isn’t $20 more expensive than your current plan, savings are there to be had from the get-go.

How do the electricity rates compare?

As mentioned above, the $20/month broadband discount is great news for your broadband plan. But it only works if your electricity bill doesn’t go up by $20 per month in the process…

2degrees offers just a single electricity deal, although, as required in NZ, it comes in two different user options: low user and standard user.

Electricity prices in NZ vary depending on where you live. But for this example, we used a power quote from 2degrees for an Auckland suburban address, and compared it with quotes from a competitor to see how they stacked up.

All prices listed are inclusive of GST

2degrees

Low user

• Fixed Daily Charge – 30c /day
• Usage Charge – 29.3c /kWh

Standard user

• Fixed Daily Charge – $1.913 /day
• Usage Charge – 21.95c /kWh

Competitor

Low Rate

• Fixed Daily Charge – 67.46c /day
•  Usage Charge – 27.27c /kWh

Standard

• Fixed Daily Charge – $2.38 /day
•  Usage Charge – 19.5c /kWh

Compare electricity providers for free with Canstar Blue!

Based on the above figures, 2degrees electricity is certainly good value, with lower fixed daily rates. However, the competitor’s per kWh rates are slightly better than those on offer from 2degrees. But whether that could outweigh the lower fixed daily rate comes down to how much power you use.

Ultimately, the above rates show that while 2degrees might not be offering groundbreaking prices on electricity, you’re likely not overpaying, either. However, it is worth noting that several electricity providers have switched to offering time-of-use power rates.

And depending on your usage, this can save you a lot on power each month.

Time-of-use power plans

With a time-of-use plan, your rate differs depending on when you use power. These rates are typically divided in two/three different slots. While the exact times of each slot differ between providers, here is a rough guide:

• Peak – Monday to Friday, 7am-11am & 5pm-9pm
• Off-peak/shoulder – 11am-5pm and weekends
• Off-peak/night – 11pm-7am

If you use a lot of electricity late at night, or work from home and tend to get all your chores done from mid-morning to early afternoon, you could pay a lot less for power. Imagine taking a long shower, doing a load of laundry (including running the clothes dryer), slow-cooking dinner and then chucking the resulting washing up into the dishwasher all for 12c per kWh!

Of course, if you work a standard 9-5 in an office, you may find the majority of your usage occurs during peak times anyway, and that a time-of-use plan may not offer much savings. Although, you can always look to change your power habits.

Below we’ve listed the time-of-use rates we were quoted from one provider, for the same address as above, to give an idea of the level of potential savings on offer.

Competitor 2

Low Rate

• No Daily Charge
• Peak – 35c /kWh
• Off-Peak – 26c /kWh
• Night – 17c /kWh

Standard

• Daily Charge – $2.27
• Peak – 23c /kWh
• Off-peak – 14c /kWh
• Night – 12c /kWh

As you can see from the above rates, if you can shift the majority of your usage to off-peak/night, the discount is significant. Interestingly though, the above peak rates are actually slightly above what’s on offer from 2degrees. So if the majority of your usage remains within peak times, any savings will be minimal.

Should I bundle 2degrees broadband and electricity?

If you’re using power at fairly standard times then 2degrees electricity rates are certainly competitive. However, as mentioned above, depending on your usage habits, you may find that opting for a provider with time-of-use rates provides better value.

However, it’s worth remembering that opting for 2degrees electricity scores you $20 off your broadband plan. So you’d need to be using plenty of off-peak power to make up for that $20 difference. Especially when you factor in that 2degrees broadband is already excellent value.

How does 2degrees broadband compare?

The below table compares the current standard 300/100Mbps broadband deals on offer before factoring in the 2degrees $20 bundle discount.

*$15 one-off modem delivery fee (Prices correct as of 01/11/22)

All plans are for 300mbps/100mbps with no home phone line. Unless indicated as an extra, all include a router, although a delivery fee can apply. It’s worth noting that most deals also include early termination fees, should you break your contract early. And many allow you to bring your own compatible router.

As you can see, 2degrees’ Fibre 300 plan is already great value at $75/month with Free Prime Video for a year ($8/month). Factor in the $20 discount when you bundle electricity, and it becomes the second cheapest Fibre 300 plan on the market, losing out only to Trustpower.

And that’s only because Trustpower is currently offering six months free broadband when you sign up for a 12-month contract. Normally, its broadband plans are more expensive. Plus, Trustpower isn’t throwing in any extra perks with its offer, whereas 2degrees will still give you the free Prime Video and a $100 Prezzy card.

Furthermore, if you also throw a 2degrees pay monthly phone plan into the mix, you score yourself another $10 off your broadband plan! Doing so would bring your Fibre 300 plan down to just $45/month!

How do 2degrees’ phone plans compare?

As mentioned above, by bundling both your phone plan and your electricity with 2degrees you’ll shave $30/month off your broadband plan. In this instance, whatever 2degrees plan you opt for, whether Fibre 300 or 900, or wireless, it’s just about guaranteed to be the cheapest of its kind.

Of course, as with electricity, you need to ensure choosing a 2degrees mobile plan is a good move.

Fortunately, 2degrees’ phone plans stack up well against its major competitors. You can see this from its Endless Data Pay Monthly plan below:

Of course, the above is a simplified comparison, and there’s plenty more to consider. For example, Spark’s plan includes free Spotify Premium, and while Skinny offers less than half the data of 2degrees, it is also cheaper.

You can see a more comprehensive Endless Data phone plan comparison here.

Is 2degrees’ electricity a good deal?

For the average customer, 2degrees electricity itself is comparable with the market. So it’s not necessarily cheaper or more expensive than your current provider. Although again, as mentioned above, for some customers a lack of off-peak rates may be less than ideal. Especially for those who are charging their shiny new Teslas every night.

→Related article: EV Power Plans: The Best Power Plans for Electric Vehicles

Ultimately, it pays to grab a few of your past power bills, and crunch some numbers. How much would your bill have been if you were paying 2degrees’ rates, and how does this compare to what you’re currently paying? You might also want to grab a few extra quotes from a handful of other providers as well.

→Related article: Compare Power Companies: 3-Step Guide

As long as 2degrees’ charges are roughly the same as your current power provider’s, then you’re in good steed to score yourself a saving. Because the real value comes from the broadband discount that bundling your electricity brings, as it essentially makes 2degrees broadband some of the cheapest broadband on offer. And for those who have their phone plan with 2degrees as well, the savings can be even more impressive.

But again, you’ll need to take some time to do some maths. You’re not only comparing electricity rates, but the price of the broadband and phone plan, too.

You’ll also need to ask yourself questions such as:

• Do other providers offer benefits, such as free subscriptions that improve the value on offer?
• What other bundle deals are there? For example, most telcos offer a discount for bundling your phone plan
• Am I overspending on a phone plan just to earn a discount?
• 2degrees’ current fibre broadband deal is only available when you sign up for a 12-month term. Do you want to be locked into a 12-month contract?
• Do you need multiple phone plans for the whole family? If so, which provider has the best group plans?

Compare electricity providers with Canstar Blue

If you are considering solar, the right power plan is paramount. But finding the right provider can be a real challenge.

If you are looking to change electricity providers, or are unsure if you are getting the best deal, Canstar Blue can help. We rate NZ power companies for customer satisfaction and value for money, see the table below for some of the results, or you can click on the button below for the full results of our survey.

Canstar Blue’s latest review of NZ power companies compares them on customer satisfaction. The table below is an abridged version of our full results, available here.

Compare electricity providers for free with Canstar Blue!

About the author of this page

This report was written by Canstar Content Producer, Andrew Broadley. Andrew is an experienced writer with a wide range of industry experience. Starting out, he cut his teeth working as a writer for print and online magazines, and he has worked in both journalism and editorial roles. His content has covered lifestyle and culture, marketing and, more recently, finance for Canstar.