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Telecoms 'Charter' to prevent price hikes on price hikes revealed

MSE_Ruby
MSE_Ruby Posts: 21 MSE Staff
First Anniversary

A 'Telecoms Consumer Charter' that aims to better protect consumers from misleading price rises has been revealed. It comes after Martin Lewis, founder of MoneySavingExpert.com, prompted the Government to investigate the sector's problems by writing to the Chancellor over O2's recent price hike on a price hike.

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  • WBJB
    WBJB Posts: 5 Forumite
    Part of the Furniture First Post Combo Breaker

    I just had to renew my Broadband Contract with Plusnet (owned by BT). To get a decent price I have to renew for 2 more years. But in just over a month, on 31st March, the price will increase by £4/month. That's 17% or about 5 times the rate of inflation. Then there will be a further £4 increase a year later. There was a campaign by Consumers Association and others to ban inflation linked rises, but these have just been replaced by even larger rises. I spent a long while looking for someone who didn't make such a massive increase, but in the end I stuck with Plusnet as they have been reliable and some of the cheaper alternatives are not highly rated.
    Nowhere else when I buy services do I have to agree to massive increases mid-contract. I think this is unfair, and as everyone does it it really amounts to collusion and an uncompetitive practice. It should be banned - come on government - do something about it.

  • zathrasB5
    zathrasB5 Posts: 12 Forumite
    Third Anniversary 10 Posts

    I want to see something else addressed with the Charter. Broadband should be treated as an essential service like water and electricity. But if I move house I do not have to pay for those services at my old address anymore. Why do I have to pay for a service I can no longer use just because its broadband? I think someone should take on the big companies by holding you to fulfil a contract when you no longer even live at that address as an "unfair contract". I would love to know how much money the companies are making out of having to do absolutely nothing just because due to unforeseen circumstances you are forced to move.

  • forgotmyname
    forgotmyname Posts: 33,105 Forumite
    Part of the Furniture 10,000 Posts Name Dropper

    Recently had a great off for 900MB Fibre from Plusnet which would be cheaper than I currently pay for 500MB, then you get the
    smallprint as you said with £4 increase in March so only 1 month cheap then I will be paying more.

    I thought wait for offers after March and see if they are as tempting.

    Censorship Reigns Supreme in Troll City...

  • I have 6 SIM Only lines with EE, well out of contract, have been getting CPI+ increases until now. 4 cost about £7.40, the other 2 are £14.80 with higher data limits. They just increased by £2.50 each line, meaning about 34% for the four, 17% for the two, 25% average.

    When I raised a complaint, quoting those numbers to an agent, they said 'it's not a percentage increase, it's pounds & pence. I tried to explain mathematics to them, but they were either hard of thinking, or their script was very tight. At one point they said "this is what you signed up for". Now I am never abusive to call centre staff, but that is the closest I have ever been - I last recontracted in about 2020, easily pre-dating OFCOM's stupid move to pounds & pence, I most certainly did not sign up for a 25% increase in 2026.

    How did we get here? If a company offers a 24 month contract, they know what they are signing up to and should just honour it - where did mid-contract increases come from? (rhetorical)

  • southsidergs
    southsidergs Posts: 336 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    edited 19 February at 1:54PM

    They're gving you the option to leave with the change so if that annoyed just do it. No idea why your on about in contract increases as you're out of contract going by dates too

  • Obviously I can leave, it's the principal.

    My comment about in contract changes is generally, not specific to my current situation. It would be pertinent to my next contract, whether EE or not, if they have in contract increases.

  • kendizle
    kendizle Posts: 20 Forumite
    Seventh Anniversary 10 Posts Combo Breaker

    Just got the email saying my Virgin Media broadband is increasing by £3.50. At only currently £25 per month, that's a 14% price increase. Really feel shafted. How is it a contract agreement if they can change the terms half way through. I cant decide that I suddenly want to pay 14% less in April.

    We are really at the mercy of these companies and have zero say as consumers. Let's get this changed so that a contact and its terms cant be revised midway through.

  • saajan_12
    saajan_12 Posts: 5,805 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker

    The principle (not pricinpal) of companies deciding what to charge on rolling contracts is fine by me.. its effectively a new agreement to stay each month, you don't have a right to a fixed price (or inflationary or whatever) for ever.

    The issue is

    1. When you agreed to a fixed term contract with a cheap headline price but they hide the actual price for the latter months in the small print with large increases. Eg instead of charging £30 + £5 increase half way through, just charge £32.5 for the whole fixed term. They can forecast and build in inflation the same way customers can.
    2. When you agree to a fixed term and they increase by a higher % than in the small print, but then graciously allow you to cancel. There you had a right to stability for the whole fixed term which you no longer get.
  • It's actually made me look at MVNOs, plenty over better value, some with 24 month contract that are just that - fixed for 24 months.

    Try this prompt in ChatGPT:

    UK mobile SIM only monthly contracts - give me a summary table showing which operators and MVNOs have said they they do NOT have mid contract increases. Include columns for who the underlying operator is for MVNOs, contract period, whether EU roaming is included for free and whether the Wifi Calling feature is included. Include a column for the monthly cost of their cheapest contract that includes at least 30gb of data per month (or unlimited)

  • JSmithy45AD
    JSmithy45AD Posts: 1,329 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper

    Don't forget to check the actual T&Cs on the individual websites, if you rely on chatgpt for correct information you will regret it.

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