EE replacing RPI increases....

simax

From next year, EE will be replacing RPI increases with CPI + 3.9%!!!

Also, currently there are two separate increases annually, the one you get depends on when you signed up originally. Everyone will be moved to the same rate at the same time.

So under the new model, if CPI next year was 2.5%, then EE would up the plans by a whopping 6.4%!!!

There will be communication going out at the end of this year about the changes. I wonder if this could be used as grounds to cancel an existing contract?

I think this shows that BT Group are in some difficulties.

Neil_Jones

If the increases are in the T&Cs it normally doesn't provide the cancellation benefit, as you're effectively agreeing to a CPI+3.9% increase if its in the T&Cs that you agreed to when you signed up (and also demonstrates why you should read them rather than just saying yeah, whatever).  The proof will be in the pudding so to speak.

simax

In order to change the method of increase, they will need to physically change the wording in the terms and conditions and if they work out to be of material detriment for existing customers that previously had an RPI increase..... well...... they need to be clever with this..... because if I agreed to an RPI increase when I took the contract out and then mid-term they change to CPI+3.9% then any increase is likely to be much higher (in percentage terms) than what I agreed to.

20aday

Where and when was this announced out of interest? 
For most people on EE they'll see an RPI adjustment each March as outlined in their Terms and Conditions.
I know BT themselves have been using CPI since earlier on in the year, and I believe Plus.net (who BT own) now do the same?

simax

Was announced internally today by Marc Allera. It’s going to be rolled out towards the end of the year.

20aday

New and upgrading customers from September 1st are impacted as are BT customers. Plus.net will change from October 7th.

DoaM

Read up on RPI vs CPI ... CPI will always return a lower figure than RPI. The kick in the nuts is the +3.9% ... this will almost certainly take the increase higher than RPI.

simax

Oh god yes. CPI is usually about 1% point behind RPI.

If RPI is 2.4% for example and CPI is 1.4%, then EE’s increase would be 5.3%, more than double the RPI!

Pluto88888

Well I avoid anything to do with BT brand they are the most robbing companies in britain including virgin media.

EE already charging well over the odds on mobile phone contracts now they want extra in these hard times talking about maxing your profits.

Pluto88888

simax said:

From next year, EE will be replacing RPI increases with CPI + 3.9%!!!

Also, currently there are two separate increases annually, the one you get depends on when you signed up originally. Everyone will be moved to the same rate at the same time.

So under the new model, if CPI next year was 2.5%, then EE would up the plans by a whopping 6.4%!!!

There will be communication going out at the end of this year about the changes. I wonder if this could be used as grounds to cancel an existing contract?

I think this shows that BT Group are in some difficulties.

Of course they are in difficulties they are bloody ripping customers off had a phone call from BT yesterdays saying are you interested in BT broadband for £27 speed 36mb and £30 sim with 100GB data. Total £57 a month.


Now currently paying 3 mobile sim unlimited 4G router for £8.00 a month with speeds over 70meg and two other 3 mobile sim unlimited 600 minutes  contracts paying 5 pounds each.

Total cost £18.00

Takmon

Pluto88888 said:

Well I avoid anything to do with BT brand they are the most robbing companies in britain including virgin media.

EE already charging well over the odds on mobile phone contracts now they want extra in these hard times talking about maxing your profits.

If EE can get away with charging higher prices for their contracts and people are paying it then i don't see how that's a problem. Companies exist to make money and it's up to the consumer to get the best deals by comparing prices and ensuring they get the most for their money and it's silly to get annoyed at a company for making as much money as they can.