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Query re: timing of CPI increases

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flanzm
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Registered: ‎20-04-2016

Query re: timing of CPI increases

Hi there,

My fixed price contract expires on 19th July, and my billing date is 26th of each month.  I am trying to understand the implications of this text on the renewal offer:


"If you stay on your existing contract or sign up to a new contract before 30th June 2021, the price for broadband, line rental, call plans, call charges and add-ons will be increased on or after 1st June 2021 and then on or after 1st March every year from March 2022. On or after 1st June 2021, prices will increase by the Consumer Price Index rate of inflation published in April of that year plus 3.9%. On or after 1st March every year from March 2022, prices will increase by the Consumer Price Index rate of inflation published in January of that year plus 3.9%. Other prices, content and terms may also change during your contract.

If you sign up to a new contract on or after 30th June, the price for broadband, line rental, call plans, call charges and add-ons will be increased on or after 1st March every year from March 2022 by the Consumer Price Index rate of inflation published in January of that year plus 3.9%. Other prices, content and terms may also change during your contract. See guide for details. Also, the outside minimum term prices quoted below will be increased by 4.6% on 30th June 2021."

 

Is this saying that if I signup before 30th June then the price you have quoted me, will in effect be increased twice - once in June (which has already gone!) and then again in March, but if I renew on 1st July then the price you quoted will only be increased once in March ?


Apologies for the question but you can see, how a customer could get confused. Just trying to work out if it's in my interest to wait until 1st July before renewing contract to avoid two price increases (but I would have to take the hit on a few days of full price BB due to advance billing and me being out of contract for 7 days)

 

 

5 REPLIES 5
Baldrick1
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Re: Query re: timing of CPI increases

@flanzm 

Your interpretation makes sense to me. The question that comes to me is whether the price you have quoted will hold until the first July. Also you will need to factor in that if you leave it until your contract has expired you won't be hit with a few days at the out of contract price but a whole month so you need to do your sums to see if it's worth it.

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Gandalf
Plusnet Help Team
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Re: Query re: timing of CPI increases

Fix

Hi @flanzm 

Sorry for the confusion. Personally, I'd recommend renewing your contract on the offer we've given a day before your contract expires the 18th July to make the most of your fixed price contract.

The new contract will then either begin the next working day, the 19th, or on your bill date. *We wouldn't be able to say which one until the renewal's been put through online, as it'll depend on how the stars align.

The same renewal offer should be valid until then, it may even be available to take after your contract has expired.

I hope this helps.

[edit]

*More often than not though, I've seen online renewals go through the next working day.

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 Anoush Mortazavi
 Plusnet Help Team
flanzm
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Re: Query re: timing of CPI increases

Thanks Gandalf

Just the advice I was after.

Mike
jaseace
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Registered: ‎04-03-2021

Re: Query re: timing of CPI increases

Good question. My contract is up on 11th July so hopefully someone from PN will give an answer because I didn't even click on that I could have prices increased twice if I decide to renew pre-July

Gandalf
Plusnet Help Team
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Re: Query re: timing of CPI increases

@jaseace I'd basically give the same advice to you regarding this. 

I recommend renewing your contract 1 day before it expires to make the most of your fixed price contract.

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 Anoush Mortazavi
 Plusnet Help Team