BT is abandoning mid-contract price rises linked to inflation, will Plusnet do the same ?

[#1]

Will Plusnet follow BT's lead, and abandon mid-contract price rises linked to inflation ?

BBC News : BT changes mobile and broadband price rise policy

"BT is abandoning mid-contract price rises linked to inflation after the telecoms watchdog Ofcom threatened to ban the practice."

[#2]

Extremely likely, as Plusnet are merely a BT Consumer Division brand.

[#3]

Jumping before they were pushed ?

[#4]

@MisterW Yup!

[#5]

"We are continually thinking about how we - and the wider industry - can play our part alongside policymakers to drive meaningful change, at a time when we can see so many people under pressure,"

BT has announced it will introduce that change from summer 2024 🙄

[#6]

So there will still be increases each year, it is just that they will tell you how much when you sign the contract.

No doubt people will still not read it and complain when the prices go up!

[#7]

"BT is abandoning mid-contract price rises linked to inflation after the telecoms watchdog Ofcom threatened to ban the practice."

There is the threat of action by Ofcom, but there is also the fact that inflation is falling. BT may want to lock in larger than inflation rises!

[#8]

The price increases mentioned by Marc Allera seem to be quite steep, considering that inflation seems to be now on a downward trend.

He says "For new and re-contracting mobile customers we expect this increase to be from £1.50 (for Sim Only and Airtime, for example), and for broadband customers £3."

My Plusnet Broadband is £26.99/month, so an extra £3 is a 11% increase.

I moved from Plusnet Mobile to EE in a move arranged by PN as part of their closure programme. I currently pay £6/month. An additional £1.50/month represents a 25% increase!  😮

https://newsroom.bt.com/our-new-pricing-structure-for-the-future/

[#9]

An additional £1.50/month represents a 25% increase!

I moved to RWG rather than EE (they are an EE MVNO), and my 200 minute, 200 texts, 2GB per month, 2 year deal costs less than £1.50 per month.

My wife moved to lyca, and her unlimited minutes, unlimited texts, 5GB per month deal costs £4pm (and that includes EU roaming).

[#10]

Even wearing a blindfold, fingers in their ears, going na na na, BT/Plusnet still must have realised it's been a PR disaster.

Heads need to roll at Ofcom for allowing this in the first place,

As Judge Judy used to say - you can't just make it up as you go along. That includes made up mid contract price rises.

[#11]

Deleted in deference to DantheVan's reply.

[#12]

PlanetX, I agree with you. Why are Plusnet being coy/obstructive about this. Over the last 5+ years standard broadband contracts have lengthened - 12 & 18 month contracts for broadband were still common before then. And then we were softened up with the ubiquitous 2 year only deal, and once we got used to that we were hit again with mid contract price hikes, 3.9% MORE than inflation. It strike me as well that this was industry monopoly behaviour. I thought that was what government regulators were conceived for, to prevent abuse of the market. 

Which have just announced that Talkmobile, part of Vodaphone, have abandoned mid contract price rises. I hope this iniquitous practice dies a rapid death from now on.

And why do regulators take so long to enforce action? I do hope the next Government, of whatever complexion, do start to take the last 3 years of price gouging of the electorate seriously. They appear scared to death of ‘Big Business’ ; we should all be told why!

Lodgemoor

[#13]

Most companies are happy to confuse customers by talking about inflation rather than price indexes. Current inflation numbers don't tell you how much more consumer prices are now compared to those two years ago. Remember inflation is the first differential of a price index. When prices start to fall as they inevitably will sooner or later, you won't be offered money back because the inflation number is negative.

[#14]

Mid-contract price rises are higher than inflation because useless Ofcom agreed that ISPs could charge CPI plus 3.9%. Have a look in the T&Cs, if inflation goes down they will charge 3.9% but no deduction for lower inflation.

[#15]

Well there we are. If inflation goes down prices as per CPI won't go down, they simply go up more slowly!