CPI-linked increases of services that ARE in the CPI list should be illegal

user0124

Broadband companies like BT, Vodafone etc increase their prices by 3.9% + CPI.

However, internet services are included in the CPI (see ons gov uk ukconsumerpriceinflationbasketofgoodsandservices)

If all companies had a similar policy we'd have an exponential price growth:

Year 0: Assume 2% inflation (CPI)

Year 1: Prices are increased by 2% + 3.9%: new CPI = 5.9%

Year 2: Prices are increased by 5.9% + 3.9%: new CPI = 9.8%

Year 3: Prices are increased by 9.8% + 3.9%: new CPI = 13.7%

...

It's a reinforcing feedback loop that makes CPI spiral out of control!

It's a good thing that not all companies have this policy to the impact that internet service increases have on the CPI is minimal, but it's still NOT OK.

Is this something that we can complain to OFCOM?

iniltous

I cannot quite understand this outrage, yes it’s not nice , and in periods of high inflation having a built in price increase based on CPI + 3.9 % ( or whatever ) is going to result in large percentage increases, but ultimately that probably results in a monthly bill increase of £3 or £4 on the typical broadband bill.

Energy bills have increased by multiple hundreds of pounds per month , water , which was once a negligible bill , like £ 30-50 annually, is now likely to be £50 per month, mortgage rates increased 13 times in 18 months , so  a little perspective is needed , yes it’s not good , but it’s at worst a few quid a month, and if someone is now struggling to make ends  meet , it’s not likely that it’s this extra £4 that is causing the majority of the pain , but the extra hundreds of £’s per month  , on food , energy , mortgage  and if communication providers, that are not immune from inflation on their own input costs were to absorb the increase, a few quid saved on your broadband will make no real difference.
It’s an easy dog to kick , but it’s a distraction from the real issue.

onomatopoeia99

Why don't you try complaining to OFCOM and tell us what happens?

Actually, why don't you use an ISP without CPI increases, like I do.

Ayr_Rage

Except it doesn't work like that !

Where do you propose companies get money for investment from ?

Neil_Jones

user0124 said:

Broadband companies like BT, Vodafone etc increase their prices by 3.9% + CPI.

However, internet services are included in the CPI (see ons gov uk ukconsumerpriceinflationbasketofgoodsandservices)

If all companies had a similar policy we'd have an exponential price growth:

Year 0: Assume 2% inflation (CPI)

Year 1: Prices are increased by 2% + 3.9%: new CPI = 5.9%

Year 2: Prices are increased by 5.9% + 3.9%: new CPI = 9.8%

Year 3: Prices are increased by 9.8% + 3.9%: new CPI = 13.7%

...

It's a reinforcing feedback loop that makes CPI spiral out of control!

It's a good thing that not all companies have this policy to the impact that internet service increases have on the CPI is minimal, but it's still NOT OK.

Is this something that we can complain to OFCOM?

What are you going to complain to Ofcom about exactly?

Must be remembered price increases are on what you're paying, not whatever concoction you've come up with there.  The easy way to beat the system is not sit around complaining about it but get up and jump on the new customer deals.  Do this properly, do this regularly and it wipes out most if not all of the automatic rises.

If you don't want to do that, find a provider that doesn't have automatic rises; but you will almost certainly pay more from the outset.