...but after the increase in March 2024.
To be honest, the writing was on the wall following Ofcom's recent consultation, but it's good they have got out ahead of it.
Our annual price change is never an easy conversation to have with customers, particularly when so many people are dealing with the increasing cost of living. But it is a necessary conversation to have to help us manage our own rising costs and investments we’re making into networks and customer service, while also protecting those customers in vulnerable circumstances, suffering from financial hardship or digital exclusion.
Following Ofcom’s recent consultation, the way we communicate and charge for the contracts we provide (for both new and re-contracting customers) is going to change.
What are we changing?
We currently use a model that was introduced as part of Ofcom’s Fairness for Customers commitments in 2019 that adjusts customer pricing every year, on 31st March, by the rate of inflation (CPI) +3.9%.
At the end of last year, Ofcom shared a consultation advising that prices linked to inflation can be confusing for customers, because they don’t have certainty on exactly what their price change will be. They don’t know because inflation can go up by different amounts each year, and isn’t set until the December CPI figure is published in January. They made clear that while price increases within contract are okay, they must be set out more clearly.
Ofcom is proposing an amended regulation requiring that any price change written into a customer's contract needs to be set out in pounds and pence, prominently and transparently, at the point of sale. That includes being clear about when any changes to prices will occur.
We're listening, and we've taken this on board.
Ofcom will finalise its decision on the proposed requirements in the coming months, with new pricing models in place no later than four months after that.
So, starting in early summer, we will introduce a pricing model consistent with Ofcom’s approach, moving away from % figures and CPI, and offering instead, a clear and simple view of any changes in “pounds and pence”. For new and re-contracting mobile customers we expect this increase to be from £1.50 (for Sim Only and Airtime, for example), and for broadband customers £3.
Until then, we continue to follow the existing rules, with our annual March 31st price increase of CPI + 3.9% going ahead as per normal. With the CPI inflation rate being announced tomorrow, most of our customers can expect an increase of a few pounds per month, about the price of a takeaway coffee each month.
Full press release here: https://newsroom.bt.com/our-new-pricing-structure-for-the-future/
Edited to add an example (from Ofcom) of how they would like transparent price increases to potentially look:
