Regulation expert's warning to anyone with mobile, TV and broadband packages about changes
Regulation expert's warning to anyone with mobile, TV and broadband packages about changes
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When it comes to household bills, it's not often any good news arises. However, according to an expert in regulatory matters, there's cause for optimism amid changes being enforced in the way we pay for our broadband, mobile phone and TV package contracts.
Self-acclaimed The Regulator Guy says a new mandate comes into force tomorrow (Friday, January 17) whereby from this date, "any new contract that is signed, your provider will have to tell you in pounds and pence figures your prices rises are going to be each year - and when they are".
He explained in a TikTok video that previously, prices hikes were incorporated in April each year - in line with inflation. "It was usually inflation from December plus 3.9% - so when we had around 12% inflation, we'd get around 15% increases on our bills, which left everyone outraged," The Regulator Guy detailed.
Now, however, Ofcom's ruling requires firms to share the exact amount your bills will go up in the middle of the contract - rather than linking it to inflation - a figure that is unpredictable. So how will that benefit the consumer? "Your contract price is clearer," The Regulator Guy elaborated. "You can easily calculate the total value of that contract because you'll know how much it is going up by and when it's going up - rather than waiting for inflationary figures to be released.".
Whilst this makes it easier to compare potential contracts between providers, there is significant drawback, however. "We're therefore not likely to look at inflation figures when they come and determine whether or not our providers have increased more or less than the inflation - meaning we won't know if our contracts are in fact more or less expensive," The Regulator Guy added.
