Millions of mobile and broadband customers to be hit with ‘unfair’ bill rises due to rule change coming in DAYS
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MILLIONS of mobile and broadband customers on cheaper contracts could be hit with "unfair" bill rises within days. Telecom firms have been ordered by the regulator Ofcom to display mid-contract price increases in pounds and pence from January 17. Prices are usually hiked in April in line with either the Consumer Price Index (CPI) or Retail Price Index (RPI) measures of inflation plus up to 3.9%.
![[Broadband users could end up paying more under a new pricing structure]](https://www.thesun.co.uk/wp-content/uploads/2025/01/2pgp829-modern-wi-fi-router-856957639.jpg?strip=all&w=960)
The new rules are designed so customers know exactly how much their contract will rise before taking it out rather than it being linked to inflation which can go up or down. However, consumer experts have warned the change might not always see customers pay less, with inflation sat at 2.6% in November.
Inflation hit a 41-year high in October 2022, when some customers saw their bills rise by up to a staggering 17.4% and would have welcomed the new pricing structure. The new pounds and pence rules will see firms cap the maximum price rises at between £1 and £3 a month.
However, Andrew Ferguson, editor of thinkbroadband.com, said that the shift from complex CPI plus percentage-based rises to pounds and pence increases rules coming into effect later this month may not be as good as they seem with inflation lower. For example, if you pay £24.99 a month for broadband and your contract increases by £3, that is costlier than what it would be with an inflation-based rise of 6.5% (based on November inflation +3.9%), which would equate to approximately £1.62, according Andrew.
