Any supplier not adding CPI + 3.5% to contracts?

darrow_2

It looks like this is the latest attempt to squeeze more out of us. So far I have tried BT, Plusnet, TalkTalk, Shell Energy. They all add this huge increase to your “fixed price 😄” contract every March. The % added to CPI varies. TalkTalk add 3.7%. That’s currently an extra 13.6%. Is anyone still offering a genuine fixed price deal?

Lankylad

I was about to post a similar comment until I saw you'd beaten me to it! My BT contract expires mid Dec after which BT want an extra £7/month - about a 15% increase. And then, as you rightly point out, in March it's another increase of CPI + 3.9% which in itself will be around another 15%. So within 3 months it'll be an increase of more than 30% for the same "service." Outrageous profiteering in my opinion - and it's every ISP as far as I can see. Is there anyone we can complain to who will actually listen and do something? Ofcom maybe?

southsidergs

Lankylad said:

I was about to post a similar comment until I saw you'd beaten me to it! My BT contract expires mid Dec after which BT want an extra £7/month - about a 15% increase. And then, as you rightly point out, in March it's another increase of CPI + 3.9% which in itself will be around another 15%. So within 3 months it'll be an increase of more than 30% for the same "service." Outrageous profiteering in my opinion - and it's every ISP as far as I can see. Is there anyone we can complain to who will actually listen and do something? Ofcom maybe?

If you calm down & actually read what they've sent you you'll see the £7 is actually an in contract discount which will only be removed if you do not contact them & agree a new contract/move elsewhere before the contract ends, hardly a "accept it" situation that you seem to be making out it is

darrow_2

A complaint to Ofcom is a good suggestion Lankylad.

jon81uk

darrow_2 said:

A complaint to Ofcom is a good suggestion Lankylad.

On what basis? The increase is set out before you take out the contract so the companies aren't doing anything wrong.

Ofcom have already acted to state that information on mid-contract rises needs to be clear Protection for consumers against unexpected mid-contract price rises - Ofcom

darrow_2

jon81uk said:

darrow_2 said:

A complaint to Ofcom is a good suggestion Lankylad.

On what basis? The increase is set out before you take out the contract so the companies aren't doing anything wrong.

Ofcom have already acted to state that information on mid-contract rises needs to be clear Protection for consumers against unexpected mid-contract price rises - Ofcom

True for new contracts. Shell Energy added it to mine half way through my contract and said I could leave if I didn’t like it. There is nowhere to go! 

What is not acceptable is that the entire industry are inserting it into their contracts and I think it needs to be justified. I’m wondering if the CPI + n% trick is exclusive to ISPs. I haven’t come across it anywhere else.

jon81uk

darrow_2 said:

jon81uk said:

darrow_2 said:

A complaint to Ofcom is a good suggestion Lankylad.

On what basis? The increase is set out before you take out the contract so the companies aren't doing anything wrong.

Ofcom have already acted to state that information on mid-contract rises needs to be clear Protection for consumers against unexpected mid-contract price rises - Ofcom

True for new contracts. Shell Energy added it to mine half way through my contract and said I could leave if I didn’t like it. There is nowhere to go! 

What is not acceptable is that the entire industry are inserting it into their contracts and I think it needs to be justified. I’m wondering if the CPI + n% trick is exclusive to ISPs. I haven’t come across it anywhere else.

Mobile phone operators do the same I think.

Could write to your MP to try and get a change in the law but unlikely to do much.

Neil_Jones

darrow_2 said:

jon81uk said:

darrow_2 said:

A complaint to Ofcom is a good suggestion Lankylad.

On what basis? The increase is set out before you take out the contract so the companies aren't doing anything wrong.

Ofcom have already acted to state that information on mid-contract rises needs to be clear Protection for consumers against unexpected mid-contract price rises - Ofcom

True for new contracts. Shell Energy added it to mine half way through my contract and said I could leave if I didn’t like it. There is nowhere to go! 

What is not acceptable is that the entire industry are inserting it into their contracts and I think it needs to be justified. I’m wondering if the CPI + n% trick is exclusive to ISPs. I haven’t come across it anywhere else.

Regardless of whether you feel its acceptable or not, its not a new thing.  It's been the case for quite some time now.

Sky TV have had it for years, and mobile phone providers have had it for a while.

And there are ISPs without a CPI+3.x% increase, however these tend to be more expensive from the outset and you're taking a gamble as to whether their net price works out cheaper than what the baked-in rise would come to.  You may find it works out to exactly the same.  If that's the case you may as well just pay less now until April and be relatively quids in.

Some providers are listed here:

https://www.which.co.uk/news/article/broadband-annual-price-rises-which-providers-will-hike-costs-the-most-in-2022-aqANB0V1LksP

darrow_2

Thanks for the Which link. It has some good advice.

400ixl

It is an approach which has been approved by the regulators, so raising a complaint with them won't go very far.

Complaining to your MP is about the only route to have a voice really.

Money_Grabber13579

Sky are doing 18 month fixed price contracts.

https://www.sky.com/broadband

The thing that really annoys me is that for the providers which increase their prices part way through a contract (under the guise of costs increasing), they generally continue to market their products to new customers at the original price, making a mockery of the whole rationale for increasing prices in the first place.