O2 we are changing the way we do annual price rises

35har1old

They are moving away from RPI+3.9% to a arbitrary figure 
Which disguises that the increase in my case is 44% and they blame it on Ofcom

Ayr_Rage

It's NOT an arbitrary figure, it a fixed amount and O2 are correct, new rules from OFCOM regarding transparency of increases.

All ISPs and mobile providers will be moving to that methodology.

For low priced contracts it does mean a large percentage increase.

It does save us all from Liz Truss moments or other events where inflation spikes.

simax

However as long as you stay on your current contract, you’ll retain your existing T&C’s (RPI+3.9%)

35har1old

simax said:

However as long as you stay on your current contract, you’ll retain your existing T&C’s (RPI+3.9%)

Have the email stating what the increase to be no mention of remaining on RPI +3.9% Ofcom has knocked that on the head

Miles86

These changes by OFCOM must have caused some of the worst outcomes for customers of any regulator ever. Yes the providers were taking liberties with the above inflation aspect, but limiting them to a fixed amount, rather than, say limiting them to the rate of inflation has arguably resulted in worse customer outcomes.

Take an average £30pm contract, increasing by £3 per year. That's 10%. Which realistically is much, much more than inflation is likely to be going forward, the past couple of years being a total aberration. So now the result of OFCOMs changes is that inflation itself is going to be higher. Brilliant.

la531983

Miles86 said:

These changes by OFCOM must have caused some of the worst outcomes for customers of any regulator ever. Yes the providers were taking liberties with the above inflation aspect, but limiting them to a fixed amount, rather than, say limiting them to the rate of inflation has arguably resulted in worse customer outcomes.

Take an average £30pm contract, increasing by £3 per year. That's 10%. Which realistically is much, much more than inflation is likely to be going forward, the past couple of years being a total aberration. So now the result of OFCOMs changes is that inflation itself is going to be higher. Brilliant.

But didnt they make these changes due to people crying they had no idea how much the advance charges were going to be? Cant have your cake and eat it.

35har1old

la531983 said:

Miles86 said:

These changes by OFCOM must have caused some of the worst outcomes for customers of any regulator ever. Yes the providers were taking liberties with the above inflation aspect, but limiting them to a fixed amount, rather than, say limiting them to the rate of inflation has arguably resulted in worse customer outcomes.

Take an average £30pm contract, increasing by £3 per year. That's 10%. Which realistically is much, much more than inflation is likely to be going forward, the past couple of years being a total aberration. So now the result of OFCOMs changes is that inflation itself is going to be higher. Brilliant.

But didnt they make these changes due to people crying they had no idea how much the advance charges were going to be? Cant have your cake and eat it.

They always told you what the new payment was to be. The OFCOM move has removed what was effectively a price cap