Millions of mobile customers to be hit with inflation-busting price hikes of up to 15% this year despite new rules
Share:
MILLIONS of mobile and broadband customer are facing price hikes of up to 15% this year, despite new rules to protect customers. From January 17, telecom companies are required by Ofcom to present mid-contract price increases in pounds and pence, replacing the previous system of increases linked to the rate of inflation.
However, Richard Neudegg, director of regulation at Uswitch.com, said, "Recent rule changes for mobile and broadband mid-contract price rises apply to those taking or renewing contracts, so a large proportion of consumers can still expect to be hit by as-yet-unknown price hikes which they will only find out about on Wednesday 15.
"Many older contracts still have price increases based on December’s inflation rate, plus an additional 3.9%.". While the introduction of fixed price hikes aims to make costs clearer it means that customers on the cheapest tariffs could end up paying more under the new system.
Many providers are implementing fixed increases that are higher than current inflation rates, which are hovering around 2-3%. For example, BT and EE were the first providers to announce and apply their changes to all new contracts taken out from April 1, 2024.
This means customers who took out a new contract after this date will have price rises communicated in pounds and pence. Those who took out a deal with them beforehand will still be subject to inflation-linked price rises and won’t know the exact amount they will be paying until January 15.
