EE to increase pay-monthly mobile prices by 2.7% - MSE News

Former_MSE_Naomi

EE customers on monthly mobile contracts will be hit with a 2.7% price rise next month...

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'EE to increase pay-monthly mobile prices by 2.7%'

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David_-_fair_telecoms

I hope you checked your assertion about the Ofcom interpretation of ""material detriment" as being "very hard to prove" with the Ofcom media office. If so, then you misunderstood or were misled.
I believe that you are actually four years out of date with your understanding.
Ofcom now regards any price rise as delivering "material detriment".

Please consult the relevant Ofcom media release entitled "Protection for consumers against unexpected mid-contract price rises". This was issued on 22 January 2014, the eve of the implementation of its revised guidance. It includes a link to the guidance itself.

You may also be interested to review an article published by the Daily Express on 23 October 2013 with the headline "Line contract get-out highlighted". Representatives of the fair telecoms campaign, MoneySavingExpert.com and others celebrate Ofcom's announcement of the change, which you seem to have now forgotten about in misleading your readers.

I deeply regret having to pull up fellow campaigners in this public way. I would be delighted to share private contact details, so that we can work together, rather than in silly competition.
I am also a little unhappy at being considered insufficiently experienced to be able to include the relevant URLs in this posting. I hope I have provided sufficient information for the referenced materials to be found.

We all make mistakes from time to time. I will be happy to applaud a gracious correction.

unforeseen

Material detriment only applies to the fixed term of the contract.

Ofcom is likely to treat any price increase to the agreed core subscription price (however constructed and described in the contract terms) during the fixed term of a telecommunications contract as a modification that is of, or is likely to be of, material detriment to consumer and small business subscribers for the purposes of GC9.6

David_-_fair_telecoms

Indeed.

The issue of "material detriment" only arises when one needs to exit a contract without penalty.
There cannot be a penalty for terminating a contract, unless one is potentially breaching a condition i.e. compliance with a fixed term.

Happily, and contrary to the comments in the article, Ofcom now deems "material detriment" to be the consequence of any price increase.

(There can be confusion with the term "contract". Technically, any purchase is under the terms of a contract. The phrase "mid-contract", or "in contract", is however commonly used to refer to situations where one is subject to a continuing fixed term arrangement. Strictly speaking, the term "out of contract" is a nonsense, as it refers to a continuing purchase arrangement that has no fixed term as part of the contract.)

boatman

Also remember that the 2.7% increase is applied to your contract price before any discounts are applied.


As far as I was aware, EE have written in to their contract that line rental will rise by the January R|P|I rate in April, then it is seen as reasonable by OFCOM because the customer is made aware of this when taking out a contract.

Had it said in the contract, prices will rise every April but with no reference to how much it would be, then that would not be allowed.

PHK

boatman wrote: »

Also remember that the 2.7% increase is applied to your contract price before any discounts are applied.


As far as I was aware, EE have written in to their contract that line rental will rise by the January R|P|I rate in April, then it is seen as reasonable by OFCOM because the customer is made aware of this when taking out a contract.

Had it said in the contract, prices will rise every April but with no reference to how much it would be, then that would not be allowed.[/Q

Yes, it's not a fixed contract. There's no fixed price, it increases every year and it isn't for a fixed term.

David_-_fair_telecoms

Firstly, there is no penalty for terminating a contract without a fixed term, so the issue does not relate to such contracts.


Example 1 at Section 1.14 of the relevant Ofcom guidance, entitled "Guidance on “material detriment” under GC9.6 in relation to price rises and notification of contract modifications" (Sorry! I am not allowed to provide a link!) covers the relevant situation very clearly.


Obviously it is good and worthwhile to provide guidance on potential price increases in the terms of a contract. That does not however remove the right of the customer to exit with penalty, should they so choose, when a specific increase is imposed during the term.


It is only in cases where a specific (varying) cost is defined for the duration of the contract that the opportunity to leave with penalty is denied, i.e. when the terms of the contract, specified in £ and p, are applied.

sportsarb

David_-_fair_telecoms wrote: »

I deeply regret having to pull up fellow campaigners in this public way. (/QUOTE]

:rotfl:

This is a very funny troll account. Sublime usage of the language.

dekaspace

My £5 EE sim only runs out in April, I doubt I will get it cheaper or any bonuses on it, was thinking of getting rid of it anyway.

Bimmermad

So guys can we leave penalty free?

pmduk

David_-_fair_telecoms wrote: »

I am also a little unhappy at being considered insufficiently experienced to be able to include the relevant URLs in this posting.

All posters with limited history have this restriction.

Bimmermad wrote: »

So guys can we leave penalty free?

Of course, tell them David said so.