Millions of mobile and broadband customers are set to be hit with “unfair” bill rises due to rule change coming in DAYS. Telecom firms have been ordered by the regulator Ofcom to display mid-contract price increases in pounds and pence from January 17.
From 17 January 2025, providers will be required to set out any price rises “prominently and transparently” – in pounds and pence – before you take out any new contract. This means the common practice of linking price rises to future, as-yet-unknown rates of inflation, often with an extra percentage on top, will effectively be banned.
The new rules WON’T override any existing contract terms – so millions of customers on older contracts will still face inflation-linked rises. But Andrew Ferguson, editor of thinkbroadband.com, said that the shake up may not be as good as they seem with inflation lower. Martyn James, consumer rights expert, said: “It’s deeply unfair that businesses have opted to hit those who are struggling the most with price hikes – particularly when they have failed to promote the much cheaper social tariffs that most people in need still haven’t heard of.”
READ MORE All parts of England that WON’T see snow this weekend according to Met Office
An Ofcom spokesperson previously said: “Inflation might be low now, but as we’ve seen in recent years, it can be incredibly volatile, and we don’t think consumers should bear that risk. Our intervention means customers will have certainty and clarity upfront about the prices they will pay, so they can compare offers and select the best deal for them.”
Andrew warns if you pay £24.99 a month for broadband and your contract increases by £3, that is costlier than what it would be with an inflation-based rise of 6.5% (based on November inflation +3.9%), which would equate to approximately £1.62, according Andrew.
On a more expensive contract that costs £59.99 a month, a £3 rise works out better than an inflation-based rise of 6.5%, at £3.89.