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

[#1]

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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."

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Seven months later ... ... Plusnet has caught up with their BT overlords -

        ISPreview : Broadband ISP Plusnet to Introduce New UK Price Hikes Policy 

For all new contracts signed up on or after 9th July 2024, a price rise of +£3 per month will be effective each March from 2025 onwards. Existing customers who want to re-contract their package will also become subject to the same change of terms / pricing policy (if you don’t re-contract and joined before this date, then the old CPI + 3.9% terms will still apply). Finally, out of bundle services will increase by 5% on 31st March each year

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[#2]

If inflation stays low, then CPI will be low and CPI +3.9% will probably be less than the proposed BT increases of £3 and £5.

For example if your bill is £40 and CPI is 3%, the increase would be 6.9% of £40 which is £2.76. Thus is your monthly bill is less than £40 and / or CPI is less than 3% the new regime will cost you money. It might be a better deal if you have ahigh monthly bill. I do not think this is a magnanimous move by BT. 

[#3]

It's no different than with mortgages. When interest rates are low, loans are snapped up and borrowers are happy. the foolhardy may borrow up to the hilt with no thought to the future. When interest rates then rise, as they invariably do as these things go in cycles, we are drowned out by cries of foul etc etc.

I'm bracing myself for cries of 'this is not fair, the increase is way above inflation', especially if inflation+3.9% is less than £3..

[#4]

I suspect there'll be a lot more 'unforeseen' cost of living increases to come, then we'll have something to moan about...