Feeling ripped off

[#1]

When I foolishly signed up for a 24 month contract, it started at £25.49.  Then it increased to £28.49 and now it is increasing again to £31.49.  An increase of £6 or over 23% in 2 years!  

Unfortunately I am still on FTTC and locked into contract until Nov 2026!  There are broadband companies out there offering contracts at a lower price, shorter term and with no increases over the term of the contract!  After many years with Plusnet it looks like we will be looking elsewhere at the end of the current contract!  😠

[#2]

@Surfer Those price increases were advised when you took out the contract, though.

[#3]

I am aware, but thought it as related to inflation.  No way has inflation been over 20% which is why we are feeling ripped off.  Roll on November!  Will never take out another 24 month contract as once hooked you are well and truly sunk!

[#4]

I am aware, but thought it as related to inflation

They used to be 'inflation + X%' then Ofcom banned it a couple of years ago and said that mid contract price rises MUST be specified in 'pounds + pence' at the start of the contract. So all the ISPs started quoting £3 increases every April. They've recently changed that to £4! for new contracts. Probably not what Ofcom expected to happen but then again the ISPs are 'cleverer' than Ofcom. Just recently some ISPs have tried to apply different rises to those quoted at the start of the contract which are technically against Ofcom rules. Doing that gives the customer a right to cancel without penalty (within 30 days) but it seems ISPs are willing to take the risk...

[#5]

The increase was initially linked to an inflation index, but when people started complaining, OFCOM changed the rules, and delinked it, so most providers decided to follow BT Groups policy, and applied a flat-rate annual increase. When inflation is low(ish), as now, that means you get a big percentage increase, but should it rise, then you may benefit.

My ISP used to offer a 'Price for Life', providing you stayed on the same product/service, but even they have dropped that now. However, the price stays the same over the contract length (typically 18 months) and you can renegotiate at the end of that term.

For instance, my latest out of contract price was quoted at around £42.00pcm, but a five minute phone call got me a new contract at £29.00 - up from £28.00.

[#6]

Thanks MisteW.  Concise answer.  I know some ISPs charge more, but then you stay at the same price for the whole term of the contract.  As said over 23% increase is a rip off!

[#7]

As said over 23% increase is a rip off!

I can't disagree with that!. If only Ofcom had done their job properly and just banned mid-contract price rises we wouldnt be in this mess...

Well we probably would be in a different mess where despite a ban, some ISPs would try what they're doing now and take the hit of having to give the option to leave.

[#8]

Caveat Emptor.

Always consider the total contract price and divide it by the number of months. For example if you join up at the end of November at £25.49 per month you pay:

4 months at £25.49 = £101.96

12 months at £28.49 = £341.98

8 months at £31.49 = £251.92

That's a total of £695.74.

Divided by 24 gives an average monthly cost of £28.99. You can then compare that with other deals, including the fixed price ones.

From the ISP's point of view one can imagine that they hope that customers haven't noticed the drip, drip of increases and are delighted when after nearly 2 years they are offered a renewal at a price that is lower than their current subscription, so think that they are getting a bargain. There might even be a gift card sweetener on offer. Then back to the drip, drip increases.

[#9]

@Surfer 

This is an excellent illustration that you cannot please all of the people all of the time.

• When the increase method was CPI + N% and inflation was low - most people were happy
• When inflation shot up towards 10% (think post COVID / Russia and the Ukraine war / loss of cheap Russian oil and gas) folks whinged and whined that the increase was a significant (and unpredictable) amount
• Ofcom (the not so user friendly protectorate of users) then deemed that folks should know for sure how much annual increases will be, thereby ISP / CP companies were forced to advise increases in terms of fixed £££.

Now that inflation has fallen to levels closer to pre 2022 the fixed £££ increases look like worse %age increases than those complained about at the height of higher CPI figures.  Only a fool would not see that being the out turn.

This is also an excellent illustration of be careful what you wish for - we might now have predictable £££ increases, but in the real terms of percentage increases, they are higher than they have ever been before.  Ofcom have in fact sold out the consumer to the benefit of the suppliers ... who are obliged to follow Ofcom's regulations ... which requires the suppliers to do something which neither the government nor Bank of England can do - predict future inflation.

[#10]

Remember, you can AT ANY TIME call in and renegotiate, no need to wait to the end of your contract.

Look at what new customers are offered, think what's reasonable to pay as a long-term customer and set your objectives.

But remember you will be recontracting for another 2 years (probably) with inbuilt increases.

Shortly before an increase is probably the best time, especially if you can get a price that's guaranteed until the increase that's a year away. 🤗

The usual approach is to tell them you're thinking of leaving......

PS As for predicting future inflation, who knew what was in Trump's mind re Iran and the worlds oil supply! 🤣

[#11]

This has to be a click bait thread 🐵

[#12]

... or Putin

... or the Labour government's massive inflation busting increases in the cost of employing folks and business rates

The point is, that the annual increase no longer being a reflection of real CPI (up or down) now requires suppliers to factor in a safety net, which is more than likely to lead to much higher increases than the (average) CPI +N% model would have delivered.   This was obvious from the very first setting of £4 each year.

We have ended up here, out of short-sighted consumer choice / whinging.

[#13]

Either way I still feel that I am being ripped off.  It is the ONLY contract that I have where the cost does NOT remain the same for the duration of the contract.  Inflation increases get banned then the supplier finds another sneaky way to take even more money of you!  End of story!

[#14]

As an FTTC customer, give some consideration to your intentions with the landline.

[#15]

Moderator's note(s):

Thread moved from My Account/Billing to Plusnet Feedback.