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Message 1 of 8

BT/EE to stop price increase based on the rate of inflation (CPI) +3.9%...

...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:

Ofcom pricing exampleOfcom pricing example

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BT Smart Hub 2 | Halo 3+ | Sky Q | Apple TV 4K | LG OLED
7 REPLIES 7
736 Views
Message 2 of 8

Re: BT/EE to stop price increase based on the rate of inflation (CPI) +3.9%...

Thank goodness BT have stated that "our customers can expect an increase of a few pounds per month, about the price of a takeaway coffee each month". 

As I don't buy takeaway coffee does that mean I will not be subject to mid contract price rise rip offs!

If they are going to continue to rip customers off with mid contract prices rises  they should do away with two year contracts and only have one year contracts. 

This will let BT increase the price when the minimum term contract has run its course and when a minimum term contract is renewed.

This will allow the customer to look around for a different supplier after their one year minimum term contract has ended rather than being trapped for the whole of their two year minimum term contract just because BT told you about mid term rises at the start of your contract.   

Either that or revert back to how it was and allow you to leave without penalty if you don't want to pay the increase.

716 Views
Message 3 of 8

Re: BT/EE to stop price increase based on the rate of inflation (CPI) +3.9%...

I'm not too hopeful about this, the ISPs will probably think of another way of getting that same amount of money out of us now they are used to it. It will probably be a surcharge added on to something that we already pay for.

697 Views
Message 4 of 8

Re: BT/EE to stop price increase based on the rate of inflation (CPI) +3.9%...

A £1.50 increase on the Sim Only that I had from BT (with EE now) would be around 15%. The next increase CPU + 3.99% will probably be around 8-10% so BT are working this well.

541 Views
Message 5 of 8

Re: BT/EE to stop price increase based on the rate of inflation (CPI) +3.9%...

Well I’m suspect it will be a right mess as I presume currently the current RPI +3.9 % are written into current Terms and conditions by BT or EE or whoever your current contract is with. So any change would be a change to T&Cs which would have to be implemented and communicated to customers.with all the implications that involves and customers rights if T&Cs  changes are to deemed to be to the customers detriment.

As to the claim that it is a the cost of a takeaway cup of coffee per month  it seems that their intention is to add individual price increases to each service  so whilst each may be less than or equivalent to a takeaway coffee the cumulative cost increases would seem to significantly more. Perhaps  a cap to the total price rise per customer would be appropriate in mid contract.

Personally I feel  if a company wishes to tie a customer into a 2 year contract rather than a 1 year one then they should clearly state charges and any change upfront at the time the contract starts. If that is too much of a risk for the company then they should provide 1 year  contacts options,

the other concern I have is this 

”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.”

Will the company expect existing  customers to re contract for a further minimum period presumably a further 24 months ?

512 Views
Message 6 of 8

Re: BT/EE to stop price increase based on the rate of inflation (CPI) +3.9%...

@Dode 

The last BT SIMO I had was £7 in 2021. With the increases in 2022, 23 & 24 that will have risen to approximately £9.45. a £1.50 increase on that for 2025 is indeed just shy of 16%.

More smoke & mirrors...

479 Views
Message 7 of 8

Re: BT/EE to stop price increase based on the rate of inflation (CPI) +3.9%...

Another observation  looking at the report mentioned wrt to value for money  I see that it is actually commissioned by companies involved in the industry rather than regulatuary  or independent authorities.

“In this report (commissioned by BT/EE, Virgin Media O2, Vodafone), we consider the relative value for money UK consumers continue to receive from fixed and mobile services given the increased usage and the investment in networks their providers have been making.”

 

469 Views
Message 8 of 8

Re: BT/EE to stop price increase based on the rate of inflation (CPI) +3.9%...

So, with the annual rate of CPI confirmed as 4% today, increases in March will be based on 7.9%. 

My broadband increase should therefore be £3.56 for 2024. 

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BT Smart Hub 2 | Halo 3+ | Sky Q | Apple TV 4K | LG OLED
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