OFCOM’s new RPI mid term ruling starting 2025

neilied

Fell upon this article. https://www.ofcom.org.uk/phones-and-broadband/bills-and-charges/ofcom-bans-mid-contract-price-rises-linked-to-inflation/#:~:text=From%2017%20January%202025%2C%20phone,terms%20in%20all%20new%20contracts.

States that Ofcom have banned mid contract inflation linked tariff increases. Haven’t seen it on here. Should be interesting. Will this really work or will mobile providers stack the contract prices to cover.

WelshPaul

Vodafone now put the price up each year by £1.80 instead. OFCOM are a waste of time IMO.

mrochester

neilied said:

Fell upon this article. https://www.ofcom.org.uk/phones-and-broadband/bills-and-charges/ofcom-bans-mid-contract-price-rises-linked-to-inflation/#:~:text=From%2017%20January%202025%2C%20phone,terms%20in%20all%20new%20contracts.

States that Ofcom have banned mid contract inflation linked tariff increases. Haven’t seen it on here. Should be interesting. Will this really work or will mobile providers stack the contract prices to cover.

They just increase the price by a fixed monetary amount now. 

neilied

O2 still quote RPI plus 3.9% so they should change. Reading it, they have to show upfront the increase and date of increase. I guess most will put an increase amount higher than estimate inflation to ensure they don’t lose out.

flaneurs_lobster

mrochester said:

neilied said:

Fell upon this article. https://www.ofcom.org.uk/phones-and-broadband/bills-and-charges/ofcom-bans-mid-contract-price-rises-linked-to-inflation/#:~:text=From%2017%20January%202025%2C%20phone,terms%20in%20all%20new%20contracts.

States that Ofcom have banned mid contract inflation linked tariff increases. Haven’t seen it on here. Should be interesting. Will this really work or will mobile providers stack the contract prices to cover.

They just increase the price by a fixed monetary amount now. 

BT/EE have announced their price increases for next year will be £1.50/£3.00 a month for mobile/broadband. Fag packet calculation says that's a fair chunk above (current) inflation for a typical bill.

mrochester

flaneurs_lobster said:

mrochester said:

neilied said:

Fell upon this article. https://www.ofcom.org.uk/phones-and-broadband/bills-and-charges/ofcom-bans-mid-contract-price-rises-linked-to-inflation/#:~:text=From%2017%20January%202025%2C%20phone,terms%20in%20all%20new%20contracts.

States that Ofcom have banned mid contract inflation linked tariff increases. Haven’t seen it on here. Should be interesting. Will this really work or will mobile providers stack the contract prices to cover.

They just increase the price by a fixed monetary amount now. 

BT/EE have announced their price increases for next year will be £1.50/£3.00 a month for mobile/broadband. Fag packet calculation says that's a fair chunk above (current) inflation for a typical bill.

It’s a classic case of unintended consequence. 

ALogical1

A bit late to this, its another Ofcom farce, they are useless from a consumers point:

So they've 'banned' Inflation +% increases, but not really, they've facilitatated persucuting the lower/middling cost services by much greater increases, with many sellers now stating a £3 yearly increases*,  a total failure of intent or need

Its hillarious to say they've 'Banned' increases, they've just forced a worse situation unless annual inflation gets above 6%, rather than done the moral honourable actions - a fixed price contract, just like a loan, a car purchase agreement, and energy supply contract etc etc.

So your on a middling service of say £30 (an ther are cheaper so it is much worse)   £3 on £30  is 10%  !!!  How is this helping consumers?
Sure if you're on a 900Mb service (of which practical use of by consumes is moot)  that might cost you £40 - 60 a month and it your paying through th enose for it at the max rate that still 5%,  well above current CPI.
So what were/have Ofcom done, just increased corporate rip off of consumers, and no one it doing anything about it - Come on Martin, get your teeth into this Ofcom farce.

It is incredulous that the 'powers' that be are so inept to see the unsustainable situation of this, if consumers 'income' goes up by cpi, yet these corporation are allowed to charge CPI + %es, they'll become unafforable/disproportinately expensive, based on a cpi of 2% the cost will double against earning at the same cpi) in real terms, good for who, certainly isnt for consumers, 'though is obviously is for the corporations and the government s tax take!

Shoddy consumer care.

All the great 'ban' from ofcom has done is 'protection' for the consumer IF CPI is More than 7%, otherwise the consumers are worse and providers proffit at at consumers detriment!!

Another Ofcom consumer rip off.

mjm3346

Simple action would be to allow any price increase the provider wants but any increase should automatically allow the consumer to end the contract penalty free (bit like it used to be before they started to build CPI etc into the terms) OR offer (probably) shorter contracts with no increases during the contract.

flaneurs_lobster

mjm3346 said:

Simple action would be to allow any price increase the provider wants but any increase should automatically allow the consumer to end the contract penalty free (bit like it used to be before they started to build CPI etc into the terms) OR offer (probably) shorter contracts with no increases during the contract.

This.

Never taken a phone + airtime contract (2 or 3 years) or an airtime contract of more than a year so no increases. Had full-fat Vodafone contracts now for 4 years, cost has fallen by a quid.

Would love to be able to do the same with my broadband contract but 12 month contracts are rare and v expensive.

onomatopoeia99

mjm3346 said:

Simple action would be to allow any price increase the provider wants but any increase should automatically allow the consumer to end the contract penalty free (bit like it used to be before they started to build CPI etc into the terms) OR offer (probably) shorter contracts with no increases during the contract.

Yep, they could all go back to loading all their start-up costs on the first month (typically an extra £60-100+) rather than amortise them over the minimum term duration, then penalty free exits and one month minimum terms would be possible.

I suspect that wouldn't be popular here though.

Kim_13

onomatopoeia99 said:

mjm3346 said:

Simple action would be to allow any price increase the provider wants but any increase should automatically allow the consumer to end the contract penalty free (bit like it used to be before they started to build CPI etc into the terms) OR offer (probably) shorter contracts with no increases during the contract.

Yep, they could all go back to loading all their start-up costs on the first month (typically an extra £60-100+) rather than amortise them over the minimum term duration, then penalty free exits and one month minimum terms would be possible.

I suspect that wouldn't be popular here though.

If minimum terms only exist because of start up costs, then why the need to lock in those that change their package/haggle? They already have the router/box necessary unless their package change requires the issue of new equipment. Providers don't seem to issue it unless they absolutely have to.

We had a Virgin Hub 2 until late 2022 when they retired it as it wouldn't work with their app, and a TiVo until early 2023 when we ditched the TV package. We even received another TiVo to replace one that had becone faulty, rather than them upgrading us to V6 at that point, which they had said that they would do. 

The Hub 3 wasn't fit for purpose, long periods of the broadband not working that hadn't happened since 2007! When we said we wouldn't recontract unless they changed the router, they agreed to issue a Hub 5 but charged us for the delivery.