MSE News: Plusnet to hike prices for 100,000s of customers next month 20 May 2021 at 5:06PM in Broadband & internet access 12 replies 461 views

MSE_Helen_K

Plusnet is to hit 100,000s of broadband and home phone customers with a 4.6% price hike from 30 June. The rise means some broadband customers could pay up to £18/yr more - but as the increase is written into its T&Cs, you can't cancel penalty-free unless you're outside your contract's minimum term...

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'Plusnet to hike prices for 100,000s of customers next month'

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quantum

So what about John Lewis - which is provided by Plusnet? Are they going up? What if I take out a new contract as I'm currently without a provider?

Neil_Jones

quantum said:

So what about John Lewis - which is provided by Plusnet? Are they going up? What if I take out a new contract as I'm currently without a provider?

Tells you on the website - https://www.johnlewisbroadband.com/terms/price-guide.html - "From 2021, a percentage price increase will be applied to the price of broadband, line rental, call plans and call charges. This price increase will be applied on or after 1st June 2021, and then on or after 1st March each year from March 2022"

In fact looking down the rest of the page its a complete carbon copy of the Plusnet guide, so if you took a deal out before October 7th 2020 (on Plusnet or John Lewis) you should be okay.  After that, expect prices to go up by 4.6% because that's what you agreed to.

The_Waiter

I can't understand why there isn' t a mass outcry against all communication companies jacking up their prices between 3.6-3.9%+ inflation per annum. 

Apart from putting two fingers up to OFCOM by advertising and putting it into your contract terms and conditions, it negates the rule allowing you to leave your contract early without penalty.

But also this will have an effect of increasing inflation year upon year. 

Whilst this may seem small there will be a gearing effect, and if they are applying the increase to business users who will also pass on their increased costs to their customers, inflation will skyrocket.

I personally think this is tantamount to treason!

Neil_Jones

Hardly "mass outcry", Sky have been doing it on their TV packages for years.  All they're doing is providing some certainty that it will go up by a specific amount (typically no more than on average 5% max looking at historic CPI data) at a specific point in the year.

What's not obvious though if you agreed a new fixed price after October 7th last year, whether that's affected or not by this new condition.

Swipe

Broadband will cost a fortune in ten years' time then at this rate

matelodave

Why cant MSE use the English language properly - as far as I recollect, hike was to go for a long walk or even pull up your trousers.

 Increase or raise would be the appropriate word in the context of this thread

The_Waiter

Now that they are all doing it (like a cartel ?) on all products, the customer has little or no alternative and the effect will be greater. Also note that the are using RPI which is historically higher than CPI (CPI can only be = < than RPI).
And don't forget the effect on compounding year on year.

BTY If you take on an 18 month contract you will of course have two price increases before its end.
These don't seem to be taken into account in price comparisons.

Neil_Jones

The_Waiter said:

BTY If you take on an 18 month contract you will of course have two price increases before its end.
These don't seem to be taken into account in price comparisons.

If you can find the rate of CPI in January 2022 for the March rise you wouldn't be worrying about the price of your broadband

The_Waiter

I must apologise it seems from the ad s that most providers are using CPI rather than RPI now.
I'm an old Fart so I can remember when inflation was running at 25%, so I know what things can be like when inflation gets out of control.

PennyForThem_2

I am a Plusnet customer and yes it was made very clear that there would be an increase in June.  Personally I went with that as I hate the whole negotiation thing that you have to go through annually and in Covid times (as actually these boards confirm) there may be a delay penalty in changing provider because have to rely on OpenReach.

As a pensioner relying on Defined Benefit pensons which in Public Service have increasedby inflation rate of 0.5% I have found that all essential utilities including broadband have increased by way more inflation than this!  So 3-5% - what can you do but laugh.