A consumer group has issued a warning over "outrageous" price hikes to broadband bills that could affect millions of British households. According to the group, many customers could see their bills increase by eight to ten per cent in 2024. The group is calling on regulator Ofcom to ban the practice and ensure that consumers have certainty about their costs. The price hikes come on top of previous increases of more than 14 per cent this year.
Which? analysis reveals significant price hikes
Consumer group Which? has analysed the price hikes imposed by top broadband providers on their 18 and 24-month deals. Based on the group's findings, BT and EE customers who signed contracts in January 2023 could face some of the highest average price increases, amounting to £147.43 and £147.31 respectively. Vodafone and Plusnet customers could see rises of £122.38 and £117.87, while TalkTalk customers may experience a smaller hike of £76.09 over the course of their 18-month contracts.
Shell Energy Broadband exempts some customers from price hikes
Shell Energy Broadband has chosen not to apply its 2023 inflation-linked price increases of 12.5% to customers who joined between January and March 2023. However, customers who joined before January 2023 could see their bills rise by an extra £45.27 per year from Spring 2023 to Spring 2024. Virgin Media, meanwhile, did not implement inflation-linked increases in 2023, but some customers experienced ad hoc price rises of 13.8% on average.
"Unfair" mid-contract price hikes
Which? argues that it is unfair for consumers to be signed up to contracts that do not provide certainty about costs and then face exit fees if they want to leave early. The group is calling on all providers to cancel the above-inflation price hikes planned for 2024. Ofcom, the regulator, is also being urged to ban these mid-contract price increases that harm consumers and undermine competition. Rocio Concha, from Which?, stated that customers need to know exactly how much their contract will cost when they sign up.
