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  • FIRST POST
    • seatbeltnoob
    • By seatbeltnoob 14th Feb 18, 11:23 AM
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    seatbeltnoob
    Whats a reasonable price increase mid contract?
    • #1
    • 14th Feb 18, 11:23 AM
    Whats a reasonable price increase mid contract? 14th Feb 18 at 11:23 AM
    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?
Page 1
    • Mister G
    • By Mister G 14th Feb 18, 11:43 AM
    • 550 Posts
    • 330 Thanks
    Mister G
    • #2
    • 14th Feb 18, 11:43 AM
    • #2
    • 14th Feb 18, 11:43 AM
    No, but you are usually able to leave if there has been a mid contract price rise.
    • Colin_Maybe
    • By Colin_Maybe 14th Feb 18, 12:21 PM
    • 1,963 Posts
    • 873 Thanks
    Colin_Maybe
    • #3
    • 14th Feb 18, 12:21 PM
    • #3
    • 14th Feb 18, 12:21 PM
    But broadband costs are basically the same as they were 2 years ago for new customers.
    Originally posted by seatbeltnoob
    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
    • By JJ Egan 14th Feb 18, 1:35 PM
    • 10,380 Posts
    • 4,343 Thanks
    JJ Egan
    • #4
    • 14th Feb 18, 1:35 PM
    • #4
    • 14th Feb 18, 1:35 PM
    Hi





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

    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
    • By seatbeltnoob 14th Feb 18, 1:50 PM
    • 435 Posts
    • 104 Thanks
    seatbeltnoob
    • #5
    • 14th Feb 18, 1:50 PM
    • #5
    • 14th Feb 18, 1:50 PM
    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.
    Originally posted by Colin_Maybe
    vodafone has a really good offer for the top end fibre. Can get it for 32 (including unlimited landline and mobile)
    • seatbeltnoob
    • By seatbeltnoob 14th Feb 18, 2:50 PM
    • 435 Posts
    • 104 Thanks
    seatbeltnoob
    • #6
    • 14th Feb 18, 2:50 PM
    • #6
    • 14th Feb 18, 2:50 PM
    Even if they claim mid contract increases are based on RPI? 1 increase on line rental, 1.50 increase in broadband?
    • Mister G
    • By Mister G 14th Feb 18, 3:24 PM
    • 550 Posts
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    Mister G
    • #7
    • 14th Feb 18, 3:24 PM
    • #7
    • 14th Feb 18, 3:24 PM
    Even if they claim mid contract increases are based on RPI? 1 increase on line rental, 1.50 increase in broadband?
    Originally posted by seatbeltnoob
    Yes, any increase during the contract period should allow you to leave penalty free.
    • JJ Egan
    • By JJ Egan 14th Feb 18, 3:32 PM
    • 10,380 Posts
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    JJ Egan
    • #8
    • 14th Feb 18, 3:32 PM
    • #8
    • 14th Feb 18, 3:32 PM
    Even if they claim mid contract increases are based on RPI? 1 increase on line rental, 1.50 increase in broadband?
    Originally posted by seatbeltnoob


    You agreed to possible price increases when taking out the contract .
    I don't think increases are based upon RPI .
    • seatbeltnoob
    • By seatbeltnoob 14th Feb 18, 3:54 PM
    • 435 Posts
    • 104 Thanks
    seatbeltnoob
    • #9
    • 14th Feb 18, 3:54 PM
    • #9
    • 14th Feb 18, 3:54 PM
    You agreed to possible price increases when taking out the contract .
    I don't think increases are based upon RPI .
    Originally posted by JJ Egan
    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
    • By Mister G 14th Feb 18, 4:02 PM
    • 550 Posts
    • 330 Thanks
    Mister G
    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
    • By iniltous 14th Feb 18, 6:56 PM
    • 1,544 Posts
    • 568 Thanks
    iniltous
    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
    Last edited by iniltous; 14-02-2018 at 7:00 PM.
    • seatbeltnoob
    • By seatbeltnoob 14th Feb 18, 9:06 PM
    • 435 Posts
    • 104 Thanks
    seatbeltnoob
    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
    Originally posted by iniltous
    knowing plusnet, they'll just back down and remove the increases.

    if they refuse to reduce the cost then it's a good way to capitalise on the new customer cashback incentives I guess. Switch providers capitalising on generous new customer cashback rewards.
    • mije1983
    • By mije1983 15th Feb 18, 12:17 AM
    • 2,896 Posts
    • 18,723 Thanks
    mije1983
    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.
    Originally posted by seatbeltnoob
    The thing is, they don't promise that though. They promise to provide you with a service, yes. But not at a given price.

    As far as I know, only TT out of the main ISPs say they will not raise prices on some (all?) of their tariffs. The rest don't promise to provide you with a service for a fixed price for the length of your initial minimum term.

    However, as said, it's not really a one way deal as you can leave penalty free within 30 days of being notified of any price increase. This can make a good new customer deal even cheaper if you combine with cashback every 6/12 months or so.
    Last edited by mije1983; 15-02-2018 at 12:20 AM.

    • pmduk
    • By pmduk 19th Feb 18, 10:07 PM
    • 8,289 Posts
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    pmduk

    As far as I know, only TT out of the main ISPs say they will not raise prices on some (all?) of their tariffs.
    Originally posted by mije1983
    Ironic, as they lost me as a customer, after raising prices on various parts of my package 4 times in the 9 months I was with them a few years back.
    • seatbeltnoob
    • By seatbeltnoob 23rd Feb 18, 1:21 AM
    • 435 Posts
    • 104 Thanks
    seatbeltnoob
    Ironic, as they lost me as a customer, after raising prices on various parts of my package 4 times in the 9 months I was with them a few years back.
    Originally posted by pmduk
    yes, they make the "no price rises" promise to new customers.
    • esuhl
    • By esuhl 23rd Feb 18, 6:12 PM
    • 8,081 Posts
    • 5,842 Thanks
    esuhl
    You agreed to possible price increases when taking out the contract .
    I don't think increases are based upon RPI .
    Originally posted by JJ Egan
    That would definitely be an "unfair" term in the contract. You can't be expected to just sign a blank cheque.

    Some companies have a clause allowing them to periodically increase the charges in line with an independently determined RPI. This is legal because consumers have been made aware of the frequency and scale of price increases, and such price increases are not arbitrary and not determined by the network (which would create an unfair balance of power between consumer and network).

    Any other price increases would constitute a breach of contract. If your contract is cancelled and an equivalent service would cost more with a competitor, your original network would be responsible for paying the additional costs for the originally contracted period.
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