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5.4% (CPI) + 3.9% = 9.3%

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Dan_the_Van
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5.4% (CPI) + 3.9% = 9.3%

Much concern in the press about the cost of living rising with the increase in prices of everything, from the 1st March of this year I expect my broadband contract will rise by 9.3%. This will be inline with BT.

So my fantastic offer for being a loyal customer for best part of 20 years is £29-75, with no mention of a Hub Two being included The current new customer price is £23-95 plus a £70 reward voucher and offer of a Hub Two. 

Provided you read everything both mention the planned price increase from March.

I can phone for a better offer and ask for a Hub Two but the point really is you should be providing existing customers more competitive offers and not take advantage of 'That'll do'

I know this is a common complaint but plusnet (BT Group) do not seem to be getting the message with regards to long term customers.

Dan.

 

18 REPLIES 18
Richchad
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Re: 5.4% (CPI) + 3.9% = 9.3%

As another long time customer I renewed my contract last August for 2 years including some discounts, I was aware of the CPI +3.9% and expected something like the last increase of 4.8%.

However an increase of 9.3% seems very excessive but also if my arranged discounts are not also increased it actually works out as a 22% increase..!

This surely cannot be right, can someone confirm my discounts be increased as well to retain the increase at 3.9% + CPI as stated in my fixed price contract that I agreed to?

 

 

jgb
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Re: 5.4% (CPI) + 3.9% = 9.3%

@Richchad 

If you renewed in August last year was it actually a fixed price contract or did it have the price escalator built in? I think it was the norm by August 2021 for fixed price contracts to be no longer available. If it is indeed a fixed price contract then you will not be subject to any price increase on line rental or broadband.

When I renewed in August or September last year the new contract included the price escalator. However, my line rental cost and my line rental and fibre broadband costs are displayed on the home page of the Member Centre and so I would expect those prices to be subject to the CPI+3.9% increase (as will my call plan cost). The discount will indeed have to be adjusted to achieve this as it was originally calculated to achieve the broadband cost I agreed to. If the discount is not adjusted then the increase will be greater and will be in breach of contract.

Incidentally, as Plusnet introduce the increase on a fixed date and not at a billing date, expect to see a somewhat confusing bill as it will include part month increases with attendant additions and subtractions to achieve the correct numbers.

Richchad
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Re: 5.4% (CPI) + 3.9% = 9.3%

@jgb  thanks for the info, I applied for my 2 year renewal contract on 28th July and contract started 19th August and thought the CPI etc would apply this year, hopefully I have got it wrong then.

If it is applied I would expect my discount to be adjusted as you mentioned to keep within the agreed contract price.

Yes it would be easier if any increase is applied on billing dates, so can see I will have a lot of head scratching trying to work out what has increased and by how much.

It would be nice if someone from PN would confirm that any discounts will need to be adjusted @Gandalf ?

Gandalf
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Re: 5.4% (CPI) + 3.9% = 9.3%

Hey all,

The price rise would apply to your monthly cost, which includes the discounts.

For example, if you pay £25.99 and the total percentage is 9.3% then it'll go up by £2.42.

Appreciate the feedback. We increase our prices so we can make sure we offer the best products & services we can do. 

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 Anoush Mortazavi
 Plusnet Help Team
Richchad
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Re: 5.4% (CPI) + 3.9% = 9.3%

@Gandalf Many thanks for confirming that, it is still a big increase but not quite as bad as I feared.

Just hope the CPI figure has improved by next year.

I did read this about Pressure is now mounting on watchdog Ofcom to intervene, with campaigners accusing firms of exploiting the small print to allow them to raise prices mid-contract, which customers cannot escape without paying hefty penalties.

https://www.thisismoney.co.uk/money/bills/article-10440125/Broadband-bandits-Millions-facing-interne...

 

 

Dan_the_Van
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Re: 5.4% (CPI) + 3.9% = 9.3%

This hasn't fixed my problem.

I was expecting more than a vanilla answer.

Smith7
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Re: 5.4% (CPI) + 3.9% = 9.3%


@Richchad wrote:

@Gandalf Many thanks for confirming that, it is still a big increase but not quite as bad as I feared.

 

I did read this about Pressure is now mounting on watchdog Ofcom to intervene, with campaigners accusing firms of exploiting the small print to allow them to raise prices mid-contract, which customers cannot escape without paying hefty penalties.

https://www.thisismoney.co.uk/money/bills/article-10440125/Broadband-bandits-Millions-facing-interne...

 

 


Lets hope that Ofcom sort it because if the CPI was 1.5% people would not be complaining

Several small suppliers have not put up prices and ZEN  have a fixed price and will not increase the price as lond as you stay with them the price may be higher to start with though

newagetraveller
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Re: 5.4% (CPI) + 3.9% = 9.3%

I'm really disappointed that my BT Fibre 1 monthly bill is going to increase by 33p! (yes, £3.46/month) Line rental paid upfront for 12 months and still 9 months remaining at the fixed cost.

Anoush
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Re: 5.4% (CPI) + 3.9% = 9.3%


@Dan_the_Van wrote:

This hasn't fixed my problem.

I was expecting more than a vanilla answer.


Thanks for getting back to me Dan and I’m really sorry for the delay. I do appreciate it’s not the answer you’re looking for as I know that price increases aren’t ever going to be a popular decision, but we’re doing this so we can continue to deliver the best services we’re able to.

By aligning to CPI+3.9% this means that the price increase will be as predictable & clear as possible, in comparison to the way we did things previously. The increase is also reflected in our new customer offers, so we can be certain we’re not unfairly focusing this on our existing customers. 

Moving onto your renewal, we do have a lot of competitive offers, some that include cashback & some that don’t. While I appreciate you’re likely expecting to renew online, if you can PM me at my ‘in-office’ account @Gandalf, I’ll be happy to arrange for an adviser from our Customer Options Team to call you back to discuss. 

(Assuming you’re within the last 3 months of your contract end date, as I haven’t checked your account)

This is my personal Community Forum account to help out around these parts while I'm at home. If I'm posting from the 1st March 2020, this means I'm off-duty with no access to internal systems.
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Dan_the_Van
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Re: 5.4% (CPI) + 3.9% = 9.3%

@Gandalf 

Thank you for replying to me from home, I do appriciate the need to increase prices, but 9.3% is way above the current inflation rate and will no doubt add to the CPI. Utility companies had a brake applied their prices increases and so should ISP.

As stated my issue is the need to make the phone call to get a better price. If you can give an improved offer with a phone call why not provide one in the first place, (it is not as if you have an impressive number of add-ons to discuss). this behaviour is inline with the way insurance companies previously increased premiums. Hopeing customers will just renew and not call them. I've been with Free On Line since 2003.

Another thread > click on me 

I will add, the majority of ISP are applying an increase during the same month.

I have received a recontract email which prompted my post, contract ends towards the end of March, thanks for the offer of a phone call but I am busy for the next seven days. I will make a call nearer the renew date or maybe I'll get an imporved email offer without the need of a call.

Thanks again.

Dan.

 

 

 

 

 

 

 

 

 

 

Gandalf
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Re: 5.4% (CPI) + 3.9% = 9.3%

Fix

Thanks for getting back to me Dan,

I've had a look at your account and I'd recommend waiting until we e-mail you an end of contract reminder that'll we'll send within the last 40 days of your contract, as we will generally make you the best offer we can do there, which you should be able to accept & put through online via your account without having to call us. 

From what I can see we haven't sent the end of contract reminder yet, so let's see what offer we make for you when we do. If you had received an e-mail about an account review, this would be something separate and that we started doing a few months before the end of contract reminders, but you should receive both. 

Let me know how it goes. 

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 Anoush Mortazavi
 Plusnet Help Team
robinm22
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Re: 5.4% (CPI) + 3.9% = 9.3%

I'm currently almost at the end of my contract and wanting to renew. I was assuming that once we were into March, if I took out a new contract then it would not be subject to the increase this March (i.e. during the very first days of taking it out). I've tried to confirm this my talking to Plusnet staff but I have been informed that if I take a contract out today then it will be subject to the increase on 31st March this year. So I'm thinking of waiting until 1st April, although this would be getting very close to my contract end date and I would rather do it now.

I note that Uswitch has a page devoted to this topic (specifically for the Plusnet CPI + 3.9% increase) and it says:

"Only out of contract Plusnet customers will see price increases for broadband, line rental, call plans and call charges.

If you’re currently mid-contract with the provider, you won't be affected by this bill hike until the end of your initial contract period. But at this point, your bill is already expected to rise much higher to Plusnet’s expensive out of contract prices anyway."

That suggests that if I take a contract out today I won't be subject to the increase this month. Is it wrong, or am I misreading it? Thanks.

 

jab1
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Re: 5.4% (CPI) + 3.9% = 9.3%

@robinm22 My reading of the available information is that if you renewed today, the price you agreed at that point would still be subject to the 9.3% increase from 31.03.22.

John
MisterW
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Re: 5.4% (CPI) + 3.9% = 9.3%

Is it wrong, or am I misreading it? Thanks.

@robinm22 Its wrong!. Can you post a link to where you found that please , so staff can get uswitch to correct it. All contracts started since around the middle of last year include for a CPI + 3.9% increase in the T & Cs

 

Superusers are not staff, but they do have a direct line of communication into the business in order to raise issues, concerns and feedback from the community.