The Australian Competition and Consumer Commission (ACCC) is urging internet customers to shop around, fearing some retailers may take advantage of wholesale pricing changes.
NBN Co has notified retailers of changes to wholesale prices which will come into effect next month.
The ACCC accepted the proposed changes after extensive consultation, but has informed providers they will be monitored to ensure they are being "upfront" about price changes.
As a result of the changes, the maximum wholesale prices for some NBN speed tiers - including 100 megabytes per second and 25 megabytes per second - will initially reduce, while other tiers such as 50 megabytes per second will increase.
However, retail prices are still set by service providers, meaning a variety of deals will be available to consumers.
ACCC commissioner Anna Brakey said it has never been more important for customers to compare prices to ensure they are getting a good value deal.
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Ms Brakey added that customers can check the commission's Measuring Broadband Australia reports to check how well retailers are meeting speed claims and to see what different speed plans can deliver in terms of gaming and simultaneous streaming efficiency.
"Given cost of living pressures impacting many householders, we expect retailers to assist customers to select NBN plans that best suit their needs so that they avoid paying more than necessary," Ms Brakey said.
"This week we wrote to all NBN retailers making clear our expectation that they are upfront and honest with consumers about what the price changes will be and why these changes are happening."
Ms Brakey said the commission will be on the lookout for any retailers pushing customers towards more expensive offers featuring speed inclusions which exceed their needs.
"We expect NBN retailers to provide clear information to consumers about suitable plans for their circumstances and preferences," she said.
Ms Brakey said less expensive speed plans allow households to access most online applications, including high-definition streaming.
She said the commission is "concerned" by some advertising which seems to suggest customers need to be on higher speed plans to meet streaming needs.
"Depending on the number of people online at the same time, many households could find that a 25 megabytes per second plan offers good value for them."
For more information on the changes click here.
