Which? Calls for Ban on Mid-Contract Price Rises
A consumer watchdog is urging regulator Ofcom to prohibit mid-contract price increases, as millions of broadband customers in the UK could be forced to pay significantly higher bills than expected. Leading providers including BT, EE, Plusnet, Shell Energy, TalkTalk, and Vodafone may raise prices by more than 8% on average in 2024, according to analysis by Which?. Virgin Media customers could face increases of over 10% based on Bank of England inflation forecasts. These annual increases are in addition to the mid-contract uplifts of more than 14% seen in 2023.
Penalty Exit Fees for Consumers Seeking to Avoid Hikes
Customers who wish to avoid these price increases may be charged penalty exit fees if they choose to leave their contract early. Based on data from the Which? 2023 broadband survey, Virgin Media, BT, and EE customers could experience the largest annual increases, while Shell Energy Broadband customers may face the smallest hikes, according to the consumer group.
Concerns Over Lack of Pricing Certainty
Which? is calling for clearer and fairer pricing for telecoms customers, arguing that consumers should have certainty about how much they can expect to pay over the course of their contract. A recent survey by the group found that 78% of consumers believe mid-contract price hikes are always unfair. Ofcom is currently reviewing mid-contract price rises and is expected to publish a consultation in December. The regulator launched an investigation in December 2022 to determine whether telecoms providers were transparent with customers about in-contract price increases.
Virgin Media Responds to Criticism
Virgin Media has stated that it is transparent with customers about any price increases and has directly contacted all customers affected by price rises. The company has provided them with details of their exact increase and offered a right to cancel without penalty within 30 days. BT, meanwhile, acknowledges that price rises are unpopular but sees them as necessary due to rising costs facing the business.
How to Resolve Complaints with Your Broadband Provider
If you have a problem with your broadband provider, you should first contact their customer services department. If the issue remains unresolved, you can make a formal complaint to the company. If there is still no resolution after eight weeks, you can escalate the complaint to the appropriate Alternative Dispute Resolution scheme, such as Ombudsman Services: Communication or CISAS.
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