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Price increase CPI wrong not 1.5% but 0.9%

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Newbie
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Registered: ‎05-06-2020

Price increase CPI wrong not 1.5% but 0.9%

I got an email today that the increase is 1.5% based on CPI increase of 1.5% as per the ONS in April 2020.

 

This is wrong! The  CPI in April  2020  is 0.9% NOT 1.5%  as per the ONS - the evidence is below. It is a small different but Plusnet should get it right and not rely on their customers to check their facts

https://www.ons.gov.uk/economy/inflationandpriceindices

April CPI 0.9%

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Hero
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Registered: ‎30-06-2016

Re: Price increase CPI wrong not 1.5% but 0.9%

It would appear that RPI has been used by mistake. Talk about Plusnet making a rod for their own back!

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Superuser
Superuser
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Registered: ‎30-07-2007

Re: Price increase CPI wrong not 1.5% but 0.9%

I've escalated this, as it would appear that incorrect figures have been used for the increase.

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Aspiring Pro
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Registered: ‎21-03-2020

Re: Price increase CPI wrong not 1.5% but 0.9%

No doubt it will be blamed on the new rubbish billing system which is taking an eternity to correct

 

HD

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Aspiring Pro
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Registered: ‎21-03-2020

Re: Price increase CPI wrong not 1.5% but 0.9%

Good morning    Superuser 

 

Has the billing team had a look at this yet

 

Thanks HD

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Superuser
Superuser
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Re: Price increase CPI wrong not 1.5% but 0.9%

Yes, I had a response to the escalation yesterday. I had hoped that someone from PN would respond directly to this thread but in the absence of that I will summarise the reponse below

Essentially the confusion appears to be from the way people are interpreting the e-mail.

When we say we're using the CPI rate from April it means we're using the rate that was published in April (Which was for March and was 1.5%) as it runs about a month or so behind. E.g. April's CPI is published in May, May's in June and so on.

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Aspiring Pro
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Registered: ‎21-03-2020

Re: Price increase CPI wrong not 1.5% but 0.9%

I understand what you mean but the T&C are very poorly written

It should say that its the March CPI announced in April not the April CPI which is announced in May

The difference for me is only a few pence so I'm not worried

 

HD

 

 

 

 

 

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Aspiring Pro
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Registered: ‎04-09-2008

Re: Price increase CPI wrong not 1.5% but 0.9%

Badly written ....and they appear to have changed the month used - ts and cs said Jan. CPI was used.

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Aspiring Pro
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Registered: ‎04-09-2008

Re: Price increase CPI wrong not 1.5% but 0.9%

Just had my price rise email - yes they are increasing by 1.5% (CPI published in April) for me 7p from 21st July. AND the ts and cs are changing from the same date.

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Newbie
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Registered: ‎10-06-2020

Re: Price increase CPI wrong not 1.5% but 0.9%

Actually the April rise was 0.8%

 

From the CPI website "The Consumer Prices Index (CPI) 12-month rate was 0.8% in April 2020, down from 1.5% in March."

 

Also predicted to be Zero in May.

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Aspiring Pro
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Registered: ‎04-09-2008

Re: Price increase CPI wrong not 1.5% but 0.9%

If you read the PN explanation, they are using the CPI figure "published in April" ,which is actually the March figure! 

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Newbie
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Registered: ‎10-06-2020

Re: Price increase CPI wrong not 1.5% but 0.9%

However, it is June now so why are they not using the May figure. I wonder what the outcome will be if CPI becomes negative.

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Aspiring Pro
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Re: Price increase CPI wrong not 1.5% but 0.9%

Good evening  john4647

I should think the prices remain the same they don't reduce because if there is a minus RPI or CPI for the month which the increase for private pensions implicated the pension does not reduce 

The state pension has the Triple Lock (for how long it lasts) which different

 

HD

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Newbie
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Re: Price increase CPI wrong not 1.5% but 0.9%

Not sure what "The state pension has the Triple Lock" has to do with PN prices?Huh

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Newbie
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Re: Price increase CPI wrong not 1.5% but 0.9%

Agree.

Plusnet could have written that their prices will go up  from June 2020 by the RPI in May.

In any event I still maintain that the RPI in April i 0.9%

the email that I got from plusnet says the following:

"From 21st July, we’re increasing the price of your plan in line with the Consumer Price Index (CPI) rate of inflation, published by the Office for National Statistics in April. The rate is 1.5%."

 

I think it is reasonably clear that it is mean April ...in which the ONS number is 0.9%