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kkkk
Aspiring Expert
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Message 1 of 12

Contract renewal and the March 2020 RPI increase

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Hello, I read somewhere that if you took up a renewal offer(Dec2019) then the first RPI increase in March 2020 wouldn't happen, but the 2021 RPI increase would happen.

Any info on this would be gratefully received ? I read it on a BT page somewhere but can't find it now..

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MikeM14
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Message 2 of 12

Re: Contract renewal and the March 2020 RPI increase

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Hi kkkk,

I renewed my contract with BT in Dec 2019, with effective start date right at the end of December. I had similar wording, and this was on the email from BT that I received when I placed the order.

The wording refers to a CPI increase, not an RPI increase. CPI is typically, although not necessarily, lower than RPI. Qualitatively, it tends to be nearly 1% lower.

The wording about the price increase, and whether or not the March 2020 increase gets waived, doesn't make much sense to me (unless I'm not reading it properly) for my particular situation. It may be that it's just generic, "boilerplate" wording stuck into the email in small print, or it may even be that they've put the wrong year ("2019" should read "2020", or vice versa).

Mike.

pottyperson
Distinguished Guru
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Message 3 of 12

Re: Contract renewal and the March 2020 RPI increase

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@kkkk wrote:

Hello, I read somewhere that if you took up a renewal offer(Dec2019) then the first RPI increase in March 2020 wouldn't happen, but the 2021 RPI increase would happen.


The annual CPI increase applies to all contracts started or renewed from 11 January 2019. I guess the exception you're thinking of was for deals already in force on that date with minimum periods extending beyond March 2020 (eg an 18-month deal agreed in December 2018). Obviously, all customers will be subject to the March 2021 increase because it would not have been possible for a deal operative before 11 January 2019 to extend that far.

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-Richie-
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Message 4 of 12

Re: Contract renewal and the March 2020 RPI increase

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When BT Plus launched, now known as Halo, they would be exempt from the 2020 CPI increase, other packages including new Halo offers have wording that implies they would be affected, I guess we'll find out in or before February. 

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kkkk
Aspiring Expert
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Message 5 of 12

Re: Contract renewal and the March 2020 RPI increase

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Yes, sorry CPI.

Its annoying I can't find it now, but it was words to the effective that your first increase will be 2021. As has been said, just have to wait and see.

In the renewal email its very clear, the 2020 cpi increase will apply, but is not what it said before.

"We're changing the way we increase our prices. From 11 January 2019, if you sign up to a new contract for a landline (including call charges, features and plans), broadband or mobile, the monthly price will increase every year from March 2020. That increase is based on the Consumer Price Index rate of inflation which is published in January of each year."

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kkkk
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Message 6 of 12

Re: Contract renewal and the March 2020 RPI increase

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@MikeM14wrote:

Hi kkkk,

I renewed my contract with BT in Dec 2019, with effective start date right at the end of December. I had similar wording, and this was on the email from BT that I received when I placed the order.

 

Mike.


Are you able to provide screenshot or similar of that email? Thanks

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MikeM14
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Message 7 of 12

Re: Contract renewal and the March 2020 RPI increase

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Here's a screenshot of the relevant wording from the email I received when I placed my order (this was just below the "Ongoing charges" section of the email).

BT Contract Price Rises in Email 17 Dec 2019.jpg

cdavman
Beginner
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Message 8 of 12

Re: Contract renewal and the March 2020 RPI increase

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My broadband contract is due for renewal at the end of this month.

On the 9th January I received an offer email stating I could renew for the same price I'd been paying. In the small print at the bottom of the email, in bold text, it clearly states "Each year from March 2021, the price of your broadband and landline plan and most of our other prices will increase by the Consumer Price Index rate of inflation published in January that year."

However,  like you, when I go to progress the renewal it states March 2020 instead... 

I attempted to ask somebody on live chat what was happening. The answer given was that any contract started before 17th January 2020 would have a CPI increase in March 2020. A contact started after 17th January would not have a CPI increase this year.

I'm guessing in my case the system is confused as I'm attempting to start the renewal process before that date, but the email is aware my current contract doesn't end until after the 17th January so is giving the 2021 date.

Hopefully somebody can confirm the above, as I'm hesitant to renew otherwise.

MikeM14
Contributor
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Message 9 of 12

Re: Contract renewal and the March 2020 RPI increase

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Hi cdavman,

That is interesting - it's the first time I'd seen that, and I'm as confused as anyone. At least you are clear when your present contract ends. I wasn't, and believe I must have been "out of contract" for a number of years. At least now I have a clear start date and end date, and duration, for my new contract.

I'm just going to have to wait for my next bill, and see if I can fathom out how it works.

Please don't take anything I say as in any way authoritative, but on the basis of what you've put up which you have been told, it looks like you shouldn't rush to get your new/renewed contract in place by 17 Jan, but wait until it's safely after that date (only 2 days' time!). It does seem surprising though that "the system" doesn't seem to be smart enough to recognise that your old contract doesn't expire until *after* 17 Jan, and react accordingly.

Mike.

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zulu17
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Message 10 of 12

Re: Contract renewal and the March 2020 CPI increases

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I believe the next and relevant  publish date for CPI is 15 January 2020 from the ONS , it normally gets widely reported .

 

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