Photo: RNZ / Alexander Robertson
The Commerce Commission is challenging Contact and Nova to stop using GST exclusive prices for energy alongside GST inclusive prices for broadband.
Last year, the Commission introduced guidelines around the marketing of energy and broadband bundles to reduce consumer confusion.
Retail service quality manager Andrew Young said most bundle providers have improved and are helping people make informed purchases.
But he said Contact and Nova promote energy prices without GST by default which goes against the guidelines.
"We really want to make sure that consumers are able to compare the prices across multiple providers to decide whether they take broadband as part of a bundle or by itself. Obviously when you're taking it as a bundle the energy price is also important.
"If you're comparing an energy price between two providers and one has GST inclusive and one doesn't, then you may not be able to fully understand whether this is the right choice for you."
Young said the Commission will work with Contact and Nova, but further action will be taken if they do not stop.
"They are breaching the guidelines. Guidelines are minimum expectations that we publish for providers. There are no penalties for breaching the guidelines.
"We're keen to work with Contact and Nova, but if nothing changes we would need to look at other regulatory tools that we have like codes with penalties for non-compliance. But we want to work together with those providers to avoid that."
In a statement provided to RNZ, Contact said it helps customers compare providers on its website and they can see power prices with and without GST.
"There is no difference in our electricity prices with, or without a broadband bundle. Part of the Commission issued Retail Service Bundling Guidelines require that we present both energy and telco prices as GST inclusive by default. Contact presents all broadband prices as GST inclusive by default.
"However, there is inconsistency across the electricity market about presenting as GST inclusive or exclusive. To help customers make the best comparisons between providers we have included a toggle to show both GST inclusive and exclusive rates."
In another statement, Nova also said customers could see energy prices with or without GST.
"Nova does not advertise, promote or market its energy pricing. Rather, Nova's energy pricing is only presented to new customers as step 4 in an online sales sign up process.
"Following initial feedback from the Commerce Commission, Nova made alterations to so customers can easily see both GST inclusive and GST exclusive pricing during the sign-up process."
Nova said it would continue to discuss the issue with the Commission.
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