Broadband Price Increases and CPI

Midori_UK

MSE latest posting on home broadband prices increases for both monthly and 24 fixed term contracts warns of unavoidable "annual" price rises up to "17%" this year, et al..

I do not accept this is legally possible to impose during fixed price contracts. Yes, I do agree that internet suppliers has intentionally disguised their introductory 2 year contracts as being a fixed price for 24 months, plus an increase of lump x % from the 25th month onwards, Then also hiding away in the smalll print a standardised paragraph adding Plus retail price inflation, Plus 3.9% on top. And there from possibly the legal right to cancel if arguably a fraudulent increase. Ofcom of course guided the small print wording.

The question is what is legally right, or a greedy fraudulent deception?  Ofcome are weak footed on this specific issue and have rolled-over their yearly statement on Ofcom's investigation plans. Below I will attach (or link) their 2023 statement, which is simply a roll on of Ofcom's weak footedness.

Also below I attach  the ONS RPI analysis showing 2023 year ending Annual Price increases. In this document the RPI for the broadband sector is clearly stated as "3.5%". The UK overall stated as 14,4%.     Whereas MoneySaving have stated their undestanding as "expect up to 17%".

My personal position is being 2 months into a fixed price Phone and Broadband contract, and a demand for "14.5% plus 3.7%" increase starting May 2023.  Where does 14.5% come from ?  Why not Ofcom's own figure of 3.5% (Broadband) plus 3.9% Ofcom annual bonus) = 7.4% at worst. Or even why not just Ofcom annual bonus 3.9% and argue that my broadband supplier, in agreeing a fixed 24month contract price, will never get away with Plus 14.5% in the small claims court?

I welcome your comments before fighting my case in the small claims court. 
 
Attachments:
1) Ofcom 2023 statement on Broadband: www.ofcom.org.uk/news-centre/2023/review-of-inflation-linked-telecoms-price-rises#:~:text=Using%20the%20CPI%20value%20published,%C2%A345.76%20from%20April%202023

2) Highlighted Data for Broadband & Phone RPI 12 mths to 14th February 2023:  

 
Orginal of above screen shot / highlighted information:-
Office of National Stats RPI February 2023:  www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/february2023

sully1311

You're not going to win anything as you agreed to the terms when you signed up. 

Ayr_Rage

Sorry, but your perception of the legality of the increase is incorrect, as above, it's all down to the Ts and Cs that you accepted when you became a customer.

You can always leave, however the grass may not be any greener elsewhere.

iniltous

ISP’s that tell their customers that they will be subject to an annual price increase based on a formula, often 3.9% plus CPI inflation, the CPI figure used from a whatever month they stipulate in the T&C’s , is the overall rate of inflation, not sector specific inflation, so it doesn’t matter at all if the communication industry inflation is 3.7% , the T&C’s are explicit, if CPI inflation is around 10%, the increase will be 10+3.9=13.9%, not 3.7+3.4=7.1%
Unless your ISP stated you had a fixed price , they you are wasting your time arguing that, the T&C will probably be quite specific, that the price will increase annually, Ofcom are looking at this , but the only possible wriggle room is that ISP have to make the yearly increase information obvious at point of sale , if the documentation is clear and doesn’t hide the increase in the small print , but it is sufficiently prominent, then the Ofcom ‘review’ will not outlaw these type of increases , don’t forget to let the forum know how you get on in the small claims court , 

Neil_Jones

Midori_UK said:

MSE latest posting on home broadband prices increases for both monthly and 24 fixed term contracts warns of unavoidable "annual" price rises up to "17%" this year, et al..

I do not accept this is legally possible to impose during fixed price contracts. Yes, I do agree that internet suppliers has intentionally disguised their introductory 2 year contracts as being a fixed price for 24 months, plus an increase of lump x % from the 25th month onwards, Then also hiding away in the smalll print a standardised paragraph adding Plus retail price inflation, Plus 3.9% on top. And there from possibly the legal right to cancel if arguably a fraudulent increase. Ofcom of course guided the small print wording.

The question is what is legally right, or a greedy fraudulent deception? 

What you "think" should happen, what "should" happen and what actually does happen are three entirely different things.

If you didn't read your T&Cs before signing up and this is the first you knew about it, then that's where the problem lies here.

Alizantil

It's a total con. & yet the'contract' doesn't allow for prices to decrease if the index goes negative !

If ofcom were competent this practice would never be allowed.

Or the customer should be given the option to leave when the new prices are revealed , without penalty. Which I hope they will implement at least as a minimum.

There are one or two providers such as Zen who do not agree with this practice they only have 18 month contract though , but it's something I suppose..

Neil_Jones

Alizantil said:

It's a total con. & yet the'contract' doesn't allow for prices to decrease if the index goes negative !

If ofcom were competent this practice would never be allowed.

Or the customer should be given the option to leave when the new prices are revealed , without penalty. Which I hope they will implement at least as a minimum.

There are one or two providers such as Zen who do not agree with this practice they only have 18 month contract though , but it's something I suppose..

It is not a "con", it is standard practice and has been the case in mobile phones (and some TV packages) for years.  They're just playing catch-up.  The way to defeat it is relatively easy, so I'd suggest rather than whinging about it, do something about it.

And Zen charge more in the first place than the budget end of the market do even after a round or two of CPI+3.9% raises.

Alizantil

Neil_Jones said:

Alizantil said:

It's a total con. & yet the'contract' doesn't allow for prices to decrease if the index goes negative !

If ofcom were competent this practice would never be allowed.

Or the customer should be given the option to leave when the new prices are revealed , without penalty. Which I hope they will implement at least as a minimum.

There are one or two providers such as Zen who do not agree with this practice they only have 18 month contract though , but it's something I suppose..

It is not a "con", it is standard practice and has been the case in mobile phones (and some TV packages) for years.  They're just playing catch-up.  The way to defeat it is relatively easy, so I'd suggest rather than whinging about it, do something about it.

And Zen charge more in the first place than the budget end of the market do even after a round or two of CPI+3.9% raises.

It's a con & you know it

Neil_Jones

Come off it sunshine, the only person using that word is your good self.

oldernonethewiser

Midori_UK said:

MSE latest posting on home broadband prices increases for both monthly and 24 fixed term contracts warns of unavoidable "annual" price rises up to "17%" this year, et al..

I do not accept this is legally possible to impose during fixed price contracts. Yes, I do agree that internet suppliers has intentionally disguised their introductory 2 year contracts as being a fixed price for 24 months, plus an increase of lump x % from the 25th month onwards, Then also hiding away in the smalll print a standardised paragraph adding Plus retail price inflation, Plus 3.9% on top. And there from possibly the legal right to cancel if arguably a fraudulent increase. Ofcom of course guided the small print wording.

The question is what is legally right, or a greedy fraudulent deception?  Ofcome are weak footed on this specific issue and have rolled-over their yearly statement on Ofcom's investigation plans. Below I will attach (or link) their 2023 statement, which is simply a roll on of Ofcom's weak footedness.

Also below I attach  the ONS RPI analysis showing 2023 year ending Annual Price increases. In this document the RPI for the broadband sector is clearly stated as "3.5%". The UK overall stated as 14,4%.     Whereas MoneySaving have stated their undestanding as "expect up to 17%".

My personal position is being 2 months into a fixed price Phone and Broadband contract, and a demand for "14.5% plus 3.7%" increase starting May 2023.  Where does 14.5% come from ?  Why not Ofcom's own figure of 3.5% (Broadband) plus 3.9% Ofcom annual bonus) = 7.4% at worst. Or even why not just Ofcom annual bonus 3.9% and argue that my broadband supplier, in agreeing a fixed 24month contract price, will never get away with Plus 14.5% in the small claims court?

I welcome your comments before fighting my case in the small claims court. 
 
Attachments:
1) Ofcom 2023 statement on Broadband: www.ofcom.org.uk/news-centre/2023/review-of-inflation-linked-telecoms-price-rises#:~:text=Using%20the%20CPI%20value%20published,%C2%A345.76%20from%20April%202023

2) Highlighted Data for Broadband & Phone RPI 12 mths to 14th February 2023:  

 
Orginal of above screen shot / highlighted information:-
Office of National Stats RPI February 2023:  www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/february2023

Do report back and let people know how you got on challenging this.

Be of great beneifit to us all.