Inflationary price rises 2022

AnnoyedEnergyUser
AnnoyedEnergyUser Posts: 37 Forumite
First Anniversary First Post
edited 24 November 2021 at 11:40PM in Praise, vent & warnings
Curious as to where to put this on this forum, as it spans so many areas. It is used by mobile phone companies, internet providers predominantly but I presume can be found in many other bills we pay.

Inflationary price rises, when first introduced it was if you were on a minimum term contract and went up once a year by the rate of inflation, (if it the increase was by more than the rate of inflation it gave a consumer the right to cancel a contract) yet next year on all these same contracts the companies have built into it a 3.9% plus inflation, with inflation likely to be around 4% by the early part of next year that could mean a 8% hike in bills. that is an extra £8 for every £100 bill you had previously.

How can this be justified?

Lots of people would have signed up for a phone contract in October/November this year for a new apple phone, yet by March next year will see this inflationary increase.

Why isn't the likes of Martin Lewis campaigning that a yearly inflationary increase should only be added to a persons bill once they have had the contract for a year?

In the main mobile companies and service providers who have these types of contracts continually push up the price of services once or twice a year, thus adding to the inflation which they then use to pump the price up again.

Maybe a fairer way of letting companies increase this particular charge is for it to be tied in with wage rises of its staff. Since the introduction of the yearly inflationary rise in prices for customers the very same companies have been telling its staff that they do not recognise inflationary aspects when looking at yearly wage negotiations. It might explain how some staff have seen if lucky a 1% to 5% increase in wages in the past 10 years where as the average cost of a mobile phone on some networks has gone up by 300% the companies though are yet unsatisfied by this and have the time bomb of a 8% rise at least to come next year.

Would like to read your thoughts.

Comments

  • Curious as to where to put this on this forum, as it spans so many areas. It is used by mobile phone companies, internet providers predominantly but I presume can be found in many other bills we pay.

    Inflationary price rises, when first introduced it was if you were on a minimum term contract and went up once a year by the rate of inflation, (if it the increase was by more than the rate of inflation it gave a consumer the right to cancel a contract) yet next year on all these same contracts the companies have built into it a 3.9% plus inflation, with inflation likely to be around 4% by the early part of next year that could mean a 8% hike in bills. that is an extra £8 for every £100 bill you had previously.

    How can this be justified?

    Lots of people would have signed up for a phone contract in October/November this year for a new apple phone, yet by March next year will see this inflationary increase.

    Why isn't the likes of Martin Lewis campaigning that a yearly inflationary increase should only be added to a persons bill once they have had the contract for a year?

    In the main mobile companies and service providers who have these types of contracts continually push up the price of services once or twice a year, thus adding to the inflation which they then use to pump the price up again.

    Maybe a fairer way of letting companies increase this particular charge is for it to be tied in with wage rises of its staff. Since the introduction of the yearly inflationary rise in prices for customers the very same companies have been telling its staff that they do not recognise inflationary aspects when looking at yearly wage negotiations. It might explain how some staff have seen if lucky a 1% to 5% increase in wages in the past 10 years where as the average cost of a mobile phone on some networks has gone up by 300% the companies though are yet unsatisfied by this and have the time bomb of a 8% rise at least to come next year.

    Would like to read your thoughts.
    Because he doesn't really care.

    I agree that inflationary increases are a scam,but they've been OK'd by OFCOM so it's all fine. I also strongly disliked the "Unlimited Internet*" *Fair Use Policy Applies but the ASA apparently deemed that little asterisk enough to apply any policy they wanted rather than giving people an unlimited service.

    It would be really interesting to see what happens if someone actually takes them to court. It does sound a lot like a contract that massively favours one party over the other but I suspect most won't have the desire or pockets to test it out in court.
  • In answer to your point around "Unlimited" 

    It is a curious word for companies to use, something without limit. I understand why they have fair usage limits as within the contract there is a section where what you do shouldn't effect other customers. If someone is running multiple devices from one location at full pelt and getting through terra bytes of data then this is a commercial use and not a domestic one. The fair usage policy is for the companies to be able to say if they so wish that your usage is not fair, as a customer could argue, that they didn't know what they was doing wasn't fair (even though it is obvious sometimes, such as sending 20,000 plus texts a month) 

    Simply changing the word would resolve this.

    But my point is to do with what seems nothing more than a legalised and unchallenged con of consumers.

    The initial rise did have it's containment of the companies that if they used a figure higher than inflation it would be seen as punitive and as such a customer could get out of the contract.

    But this flat rate of no matter what it is going up by 3.9% makes no logical sense for a consumer. even if inflation is stagnant then your bill goes up by 3.9%

    Customer can sign up in the month before a rise and the following month see the price go up by inflation. The tariff itself is likely to be no more than 6 months old so the company can not even say the customer is buying into an old tariff. As I remarked before each tariff refresh means they go up by 1 or 2 pounds and devices normally become free from at the next price point which is normally 5 pound higher. All this in itself causes inflationary pressures and then the same companies use this index to raise the bills again.

    If I run OFCOM

    1, No price rise for a customer until they have had the re contracted or new service for a full year

    2, Inflation wage rises for that companies staff to be in line or higher than contract price rises.


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