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Broadband customers face £150 hikes because of ‘outrageous’ rises – Which?
Broadband customers face £150 hikes because of ‘outrageous’ rises – Which?
Broadband customers could pay £150 more than they expected to over two years due to “unpredictable” mid-contract price rises, consumer group Which? has warned. Which? has called on regulator Ofcom to ban the practice altogether as it found that BT, EE, Plusnet, Shell Energy, TalkTalk and Vodafone customers could see increases of more than 8% on average in 2024 while Virgin Media customers could see rises of more than 10%, based on analysis of Bank of England inflation forecasts. Many of the biggest broadband firms – such as BT, EE, Plusnet, Shell Energy, TalkTalk, Virgin Media and Vodafone – raise prices every April in line with the Consumer Price Index (CPI) or the Retail Price Index (RPI) plus an additional 3%, 3.7% or 3.9%. Customers wanting to avoid these hikes can be charged punitive exit fees to leave their contract early. From working and school to online banking and social media, a good broadband and mobile connection is essential to everyday modern life Rocio Concho, Which? Based on average contract amounts from the Which? 2023 broadband survey; Virgin Media, BT and EE customers could see the biggest annual increases of £50.52, £43.68 and £43.68 respectively in the year from April 2024, the watchdog calculated. Shell Energy Broadband customers could see the smallest annual price hike of £27.16 on average. These hikes would come on top of the more than 14% mid-contract uplifts many consumers faced in 2023. Which? also calculated how much extra these two rounds of price hikes could cost a customer for each provider who took out a deal in January 2023 over the course of their 18 or 24-month contract. Based on average amounts from the Which? 2023 broadband survey, BT and EE customers who took out a contract in January 2023 could see some of the highest average price hikes of £147.43 and £147.31, while Vodafone and Plusnet customers could see rises of £122.38 and £117.87 respectively. TalkTalk customers could see a smaller hike of £76.09 on average over the course of shorter 18-month contracts. Shell Energy Broadband did not apply its 2023 inflation-linked price hikes of 12.5% to customers who joined from January to March 2023. However, if a Shell Energy customer joined before January 2023 then, based on average amounts from the 2023 broadband survey, they would pay an extra £45.27 a year from Spring 2023 to Spring 2024. Ofcom should also use their review to finally ban these unpredictable mid-contract price hikes that harm consumers and undermine competition Rocio Concho, Which? Virgin Media did not use inflation-linked price hikes in 2023 but some customers’ prices did increase by an average of 13.8% per cent due to ad hoc price rises, according to Which? According to Virgin Media, customers who signed up after November 2022 would not have faced the ad hoc price rise in Spring 2023. Those on a fixed-price promotional deal – like those offered to new customers – would also not have seen the price hikes take effect until after their deal ended. Which? argues that it is unfair for consumers to be signed up to deals that do not give them certainty about how much they can expect to pay over the course of their contract, and then face exit fees if they want to leave early. A survey by the group found that 78% of consumers believe that mid-contract price hikes are always unfair and that people overwhelmingly value pricing certainty for broadband contracts. Which? has launched The Right to Connect campaign calling for clearer and fairer pricing for telecoms customers and an end to unpredictable mid-contract price hikes. Ofcom is currently reviewing inflation-linked, mid-contract price rises and is due to publish its consultation in December. Rocio Concha, Which? director of policy and advocacy, said: “From working and school to online banking and social media, a good broadband and mobile connection is essential to everyday modern life. While we know that price changes are never welcome, against a backdrop of rising costs, increased usage and continued investment, we have openly and directly set out to customers that we are introducing inflation-linked price changes Virgin Media spokesman “That’s why it’s outrageous that unpredictable mid-contract price hikes have been allowed to continue in the telecoms industry for so long – especially when so many have been struggling to make ends meet during the cost-of-living crisis. Consumers must have certainty about the total cost of their contract. “Which? is calling on all providers to do the right thing and cancel 2024’s above inflation price hikes. “Ofcom should also use their review to finally ban these unpredictable mid-contract price hikes that harm consumers and undermine competition. “Consumers need to know exactly how much their contract will cost when they sign up.” We understand that price rises are never wanted nor welcomed but recognise them as a necessary thing to do given the rising costs our business faces BT spokesman A Virgin Media spokesman said: “We are always clear and transparent with customers about any price increases. We wrote directly to all customers who received a price rise this year to notify them of their exact increase, and gave them the right to cancel without penalty within 30 days if they wished. “While we know that price changes are never welcome, against a backdrop of rising costs, increased usage and continued investment, we have openly and directly set out to customers that we are introducing inflation-linked price changes from April next year. This widely used format will provide more certainty on when and how any future increases will occur while fuelling the investment required to ensure we keep providing the fast and reliable connectivity our customers rely on.” A BT Consumer spokeswoman said: “We understand that price rises are never wanted nor welcomed but recognise them as a necessary thing to do given the rising costs our business faces. “Our price rises are annual, contracted and transparent and we make this clear when customers sign up or renew their contract. With the average price increase just above £1 per week in 2023, and some of our customers exempt from the rise, we’re also doing all we can to ensure our services are accessible to the widest group of customers possible through our market leading social tariffs.” A TalkTalk spokesman said: “The preventable CPI-linked price rise in April 2023 was a direct result of Ofcom-regulated wholesale cost increases. In order to prevent the same thing happening next April, we are again calling on Ofcom to act and reduce the wholesale increases that lead to these price rises. “These are exceptional circumstances, and families and business across the UK need the regulator to act.” Read More Rise of AI chatbots ‘worrying’ after man urged to kill Queen, psychologist warns William hails ‘amazing’ eco-friendly start-up businesses Royal website subject to ‘denial of service attack’, royal source says TikTok finds and shuts down secret operation to stir up conflict in Ireland Spotify will not ban all AI-powered music, says boss of streaming giant Vehicle scam reports surged by 74% in the first half of 2023, says Lloyds Bank
2023-10-06 07:16
Preece ready to get back in the car at Darlington after frightening crash at Daytona
Preece ready to get back in the car at Darlington after frightening crash at Daytona
Ryan Preece said he's ready to get back in the car at Darlington a week after his horrifying crash at Daytona
2023-09-03 00:52
BBC ordered to Delhi High Court over Modi documentary
BBC ordered to Delhi High Court over Modi documentary
The documentary focused on the prime minister's role in anti-Muslim violence in Gujarat in 2002.
2023-05-22 23:28
Analysis-US debt-ceiling deal dooms Biden's revolutionary tax plans
Analysis-US debt-ceiling deal dooms Biden's revolutionary tax plans
By David Lawder WASHINGTON U.S. President Joe Biden's 2020 campaign promise to make wealthy Americans and corporations pay
2023-06-01 18:26
Spain beat Croatia on penalties to win Nations League final
Spain beat Croatia on penalties to win Nations League final
Spain held their nerve to win the UEFA Nations League final by beating Croatia 5-4 on penalties after a goalless 120 minutes in Rotterdam. Real Madrid defender Dani Carvajal converted the winning spot-kick after Spain goalkeeper Unai Simon had saved efforts from Croatia’s Lovro Majer and Bruno Petkovic. Spain’s triumph saw them seal a fifth major trophy and become the second nation after France to have won the World Cup, European Championship and the Nations League. Manchester City pair Rodri and Aymeric Laporte, who scored and missed for Spain respectively in the shoot-out, have won a fourth major trophy of the season. Croatia, who beat the Netherlands 4-2 after extra time in their semi-final on Wednesday, had been hoping to win their first major tournament. Spain did not have one shot on target in a poor first half of regulation time, while Laporte’s last-ditch tackle thwarted Andrej Kramaric, and Ivan Perisic’s header forced Simon into a diving save. Spain went close in the 58th minute when Marco Asensio headed their best chance up to then just over from the over-lapping Jordi Alba’s cross. Croatia responded through Mario Pasalic’s header, after another ball in from Perisic, before Spain stepped it up, with Fabian Ruiz’s chipped effort and Asensio’s shot on the turn both going close. Spain went closest to breaking the deadlock in the 86th minute when Perisic blocked Ansu Fati’s shot on the goal-line following fellow substitute Mikel Merino’s cut-back. Croatia substitute Majer was also denied by last-ditch defending as his shot after a counter-attack was blocked by Nacho in the first period of extra time. Spain threw caution to the wind in the second period and finished the game on top. Dani Olmo and Asensio had shots deflected for a corner and Rodri’s effort was blocked as the third Nations League final went to penalties, with Carvajal converting a nerveless winner. Earlier on Sunday, Italy beat the Netherlands 3-2 in the third-place play-off in Enschede. Roberto Mancini’s side, who sealed Nations League bronze for the second tournament running, made a flying start as Federico Dimarco and Davide Frattesi put them 2-0 up in 20 minutes. Steven Bergwijn reduced the deficit for the Netherlands midway through the second half, but Federico Chiesa struck Italy’s third four minutes later. Georginio Wijnaldum ensured a nervy finale with the Netherlands’ second goal in the 89th minute, but it was not enough to prevent a third defeat in four games under boss Ronald Koeman, in his second stint in charge. Read More Charity boss speaks out over ‘traumatic’ encounter with royal aide Ukraine war’s heaviest fight rages in east - follow live Tommy Fleetwood agonisingly close to slice of major history Ireland boss Stephen Kenny insists he has not sought assurances over his future Northern Ireland’s Paddy McNair has a positive outlook ahead of Kazakhstan clash
2023-06-19 06:50
Are Roxanne Kaiser and Antonio Mattei married? 'The Ultimatum' Season 2 star claims she is still the provider in relationship
Are Roxanne Kaiser and Antonio Mattei married? 'The Ultimatum' Season 2 star claims she is still the provider in relationship
Roxanne Kaiser didn't have an engagement ring on her finger despite getting engaged to Antonio Mattei
2023-08-30 20:49
BOJ to weigh pros and cons of its tool-kit in review -governor
BOJ to weigh pros and cons of its tool-kit in review -governor
By Leika Kihara TOKYO The Bank of Japan will scrutinise the effects and side-effects of its unconventional monetary
2023-06-16 19:27
North Korea is ramping up its intercontinental ballistic missile program. Here's what you need to know
North Korea is ramping up its intercontinental ballistic missile program. Here's what you need to know
North Korea fired an intercontinental ballistic missile on Wednesday, just days after Pyongyang threatened to shoot down US military reconnaissance planes flying over nearby waters.
2023-07-12 14:54
'I was shocked': DC Young Fly opens up about how he coped with partner Jacky Oh's sudden death
'I was shocked': DC Young Fly opens up about how he coped with partner Jacky Oh's sudden death
On Tamron Hall's show, DC Young Fly talked about his 'numbness' to the death of loved ones and shared how he coped with losing Jacky Oh
2023-12-02 19:57
New Zealand PM-elect Luxon says Willis 'locked in' as finance minister
New Zealand PM-elect Luxon says Willis 'locked in' as finance minister
New Zealand's prime minister-elect, Christopher Luxon, said that Nicola Willis was "locked in" to become the country's next
2023-10-17 07:55
Odermatt faces Kilde in controversial cross-border ski season opener
Odermatt faces Kilde in controversial cross-border ski season opener
The men's World Cup ski season belatedly gets underway in Zermatt-Cervinia this weekend with the prospect of a thrilling match-up between Marco Odermatt, the two-time Swiss holder of the crystal globe, and...
2023-11-10 12:59
Braves stars Orlando Arcia and Ronald Acuña Jr. flip out on Phillies fans from dugout
Braves stars Orlando Arcia and Ronald Acuña Jr. flip out on Phillies fans from dugout
Braves players are getting antsy ahead of a potential playoff exit in the NLDS.
2023-10-13 11:22