Where are Plusnet getting 5% from?

[#1]

I've just had notification of a 5% price rise.  According to the blurb there's some provision for increase based on CPI, but that wouldn't amount to 5% according to any figures that I can find.

[#2]

Hello @aesmith thank you for getting in touch with us in regards to the Mobile Price Increase.

Our Mobile Customer Options Team are happy to support you in regards to this matter. You can call them on 0800 079 1133.

Kind regards.

[#3]

UK CPI rose 1.8% in the year to March 2019 

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/march2019

There is much talk of CPI in the T&Cs and if you look here there is an example where a monthly price is adjusted based on the previous year's CPI.

I can't see any reference to adding up annual increases if they haven't previously been passed on. However I have seen this:

9.5. You'll not be able to end our agreement under paragraph 26 where we increase your plan price under this paragraph. If we increase your plan price by more than the CPI figure or increase your plan price more than once a year paragraph 26.3 will apply and you may be able to leave without any fees.

So, unless PN can point out under which term(s) they can justify an increase above CPI then people would be justifying leaving without any fees which I assume would include not paying for another month under a rolling 30d contract?

[#4]

So, unless PN can point out under which term(s) they can justify an increase above CPI then people would be justifying leaving without any fees which I assume would include not paying for another month under a rolling 30d contract?

That's my take, on a 30 day contract a customer can leave without penalty and I suppose the downside is that there's no commitment on Plusnet's side either as set out in their section 9.2

9.2. A rolling monthly SIM only plan that you can end at any time on 30 days’ notice, will not be subject to an increase linked to CPI in March but we may change your monthly plan price and other charges under paragraph 26.1.

Plusnet entered this market as a low cost provider and it looks like they're wanting to start ramping up their prices.  Their current offerings are all higher priced that those offered initially, as are those offered as "upgrades" for existing accounts.   Looking at their new user offerings I see they've included the option to bump up prices right from the start ..

Prices, content and terms may change at any time during your contract. We'll tell you about important changes in advance, and if a change is detrimental you'll be able to end your contract without any fees.  

Yes they allow you to leave if you don't like the change, but terms like that lack reciprocity - for example you were on a £15/month deal I don't think Plusnet would be too happy if you told them you'd decided to only pay £12, but they are free to end the contract if they don't like it.

[#5]

So, unless PN can point out under which term(s) they can justify an increase above CPI then people would be justifying leaving without any fees which I assume would include not paying for another month under a rolling 30d contract?

That's my take, on a 30 day contract a customer can leave without penalty and I suppose the downside is that there's no commitment on Plusnet's side either as set out in their section 9.2

9.2. A rolling monthly SIM only plan that you can end at any time on 30 days’ notice, will not be subject to an increase linked to CPI in March but we may change your monthly plan price and other charges under paragraph 26.1.

Plusnet entered this market as a low cost provider and it looks like they're wanting to start ramping up their prices.  Their current offerings are all higher priced that those offered initially, as are those offered as "upgrades" for existing accounts.   Looking at their new user offerings I see they've included the option to bump up prices right from the start ..

Prices, content and terms may change at any time during your contract. We'll tell you about important changes in advance, and if a change is detrimental you'll be able to end your contract without any fees.  

Yes they allow you to leave if you don't like the change, but terms like that lack reciprocity - for example you were on a £15/month deal I don't think Plusnet would be too happy if you told them you'd decided to only pay £12, but they are free to end the contract if they don't like it.

[#6]

Hey @KevH,

At Plusnet Mobile we’ve avoided increasing prices since we launched in 2016,  but unfortunately this year for customers on 30 day rolling contracts we are having to make an small increase of 5% to the monthly plan price from the 25th June.

We’re also updating our terms and conditions so that going forward we will increase our prices each year in June, in-line with the Consumer Price Index.  Customers on 30 day rolling contracts can beat the price change by switching to one of our 12 month plans, whose prices won’t be increasing this year.

I hope this clears things up for you, however, if there is anything else we can help with please let us know.

Thank you.

[#7]

Hi Mads, thanks for the update.

Are the T&Cs I linked to the current T&Cs which applies to all customers on 30d rolling contracts? If so, can you point out where it says you can increase the monthly costs by more than CPI?

If the T&Cs are the new ones, can you remind me where I was asked to accept the new version? Also, if new T&Cs leaves me materially worse off than the one I signed, is it not correct that I can withdraw from the agreement without penaly? 

[#8]

@KevH, if you are on a 30day rolling contract, and this is only coming in on 25th June (ie more than 30 days away), then what penalty would you have for moving away before 25th June?

[#9]

Paying another month if I leave within the 30d notice period. However, it is more about the principle of an increase which appears to not be covered by the T&Cs. Just trying to get some clarity.

[#10]

Hey @KevH,

Thanks for getting back to us.

If you are on a 30 day rolling contract, the new terms and conditions will apply from your next invoice date after 25th June when the price increases.

If you wish to leave before this date you will be subject to the current terms and conditions:

9.2. A rolling monthly SIM only plan that you can end at any time on 30 days’ notice, will not be subject to an increase linked to CPI in March but we may change your monthly plan price and other charges under paragraph 26.1.

Thanks

[#11]

Customers on 30 day rolling contracts can beat the price change by switching to one of our 12 month plans, whose prices won’t be increasing this year.

That's great, except the 12 month plans are 50% more expensive in the first place.

I reckon Plusnet bought into this market with low prices and now want to claw back, or maybe have to if they misjudged their original pricing.   Their terms and conditions allow for that, but I suppose we've all been used to the idea that comms prices tend to drop rather than rise.

[#12]

@Mads U got NO RIGHTS to charged me or other customers 5% price rise as PN have broken the law as it was suppose to match The Consumer Prices Index (CPI) 12-month rate was 1.8% in January 2019 NOT 5%. I shall formal make a complaint against this company PN with ofcom.

EE shop are 1.8% price rise from March 2019. Why is PN 5% greedy company

DISGRACEFUL. Not happy at all.

[#13]

Hi @goldenfibre

We're really sorry that you are unhappy with our price rise and can appreciate why. The notification you will have received also notifies our customers that they can leave free of charge. I'm afraid complaining to OFCOM wouldn't yield any results as we reserve the right to increase our pricing at any time, but have to provide enough notice to our customers so they are aware of the increase and can choose to stay with us or leave. 

I know this isn't the answer you were hoping for but I'm afraid there isn't anything we can do in this respect other than to direct you to our Mobile cancellations team should you wish to leave. By all means, if you would like to discuss this with our Mobile cancellations team, I have provided their contact details below.

Plusnet Mobile customers wishing to cancel their mobile service can dial 500 from their Plusnet mobile or 0800 079 1133 on any phone. You can also request a PAC from the mobile cancellations team. 

Again, please accept our sincerest apologies for any dissatisfaction caused and If there is anything else we may assist you with, please feel free to get back in touch as we are more than happy to help.