Whats a reasonable price increase mid contract?

seatbeltnoob
seatbeltnoob Posts: 1,311 Forumite
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in Phones & TV
Hi

I was with plusnet on a 2 year contract. They increased my rates 2 times during the contract. What seemed like a good deal at the start quickly became non competitive midway through.

They claim this is due to wholesale price increases. But broadband costs are basically the same as they were 2 years ago for new customers. it seems that they just hike the price midway through the contract to increase their margins.

is there any legal constraints on how much they can increase the costs by during your contract?
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Comments

  • Mister_G
    Mister_G Posts: 1,926 Forumite
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    No, but you are usually able to leave if there has been a mid contract price rise.
  • [Deleted User]
    [Deleted User] Posts: 5,186 Forumite
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    seatbeltnoob wrote: »
    But broadband costs are basically the same as they were 2 years ago for new customers.

    I'm not sure that is true, there don't seem to be the same sort of offers now as you could get just 12 months ago.
  • JJ_Egan
    JJ_Egan Posts: 20,281 Forumite
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    seatbeltnoob wrote: »
    Hi





    is there any legal constraints on how much they can increase the costs by during your contract?


    You have 30 days to leave from the date of your price rise notification in which to leave penalty free . Or renegotiate your contract .
  • seatbeltnoob
    seatbeltnoob Posts: 1,311 Forumite
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    Colin_Maybe wrote: »
    I'm not sure that is true, there don't seem to be the same sort of offers now as you could get just 12 months ago.

    vodafone has a really good offer for the top end fibre. Can get it for £32 (including unlimited landline and mobile)
  • seatbeltnoob
    seatbeltnoob Posts: 1,311 Forumite
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    Even if they claim mid contract increases are based on RPI? £1 increase on line rental, £1.50 increase in broadband?
  • Mister_G
    Mister_G Posts: 1,926 Forumite
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    seatbeltnoob wrote: »
    Even if they claim mid contract increases are based on RPI? £1 increase on line rental, £1.50 increase in broadband?

    Yes, any increase during the contract period should allow you to leave penalty free.
  • JJ_Egan
    JJ_Egan Posts: 20,281 Forumite
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    seatbeltnoob wrote: »
    Even if they claim mid contract increases are based on RPI? £1 increase on line rental, £1.50 increase in broadband?



    You agreed to possible price increases when taking out the contract .
    I don't think increases are based upon RPI .
  • seatbeltnoob
    seatbeltnoob Posts: 1,311 Forumite
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    JJ_Egan wrote: »
    You agreed to possible price increases when taking out the contract .
    I don't think increases are based upon RPI .

    A bit of a BS one way deal to be honest. I'm surprised it's allowed. A contract is a contract. I promise to remain with you for 18 months, in return you promise to provide me with a service at a given price.

    If you anticipate price increases due to inflation then factor that into your contract in advance OR don't insist on stupidly long contracts for 18 months to 2 years.
  • Mister_G
    Mister_G Posts: 1,926 Forumite
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    RPI increase may apply to mobile contracts (see their Ts & Cs).

    As far as I know, they do not apply to any of the major ISPs broadband contracts.

    As already stated, if they do decide to increase the price during the contract period, then they must allow you to leave penalty free. This is an Ofcom ruling.
  • iniltous
    iniltous Posts: 3,079 Forumite
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    edited 14 February 2018 at 8:00PM
    I believe it's an Ofcom requirement that if a phone/internet company increase their prices, that have to offer the customer the option of leaving penalty free, provided the customer advises their provider that they in effect refuse the increase within 30 days of being advised of the price increase,and intend to leave, so the amount of 'increase' doesn't matter at all, an increase of 0.01% or 25%, allows you to leave provided you advise them within the 30 days of the increase if you don't leave, you are deemed to have accepted the increase and the 'contract' continues albeit with the new price.
    If Plusnet state wholesale prices have increased it depends on what wholesale price they are talking about, it's not wholesale line rental paid to Openreach, but they will have other wholesale suppliers, and it's not your problem if their costs increase, but ultimately it's up to you, accept the price increase , or find a new supplier
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