BT's Residential Standard Terms allow for these increases and permit termination of your contract without penalty if you wish (see extract below).
Price increases have been routine in early January for several years with the same procedure (except that the time allowed for cancellation has just increased from 10 days to 30 in line with Ofcom requirements) so it's surprising that this has not been an issue for you before now.
I've just got my latest bill. I knew that line rental had risen to £16.99/month but not that my Infinity2 has gone up from £26/month to £27.65. When the mobile phone operators raise prices mid contract the regulator says people have the right to cancel their contrats without penalty as it is so unfair...why not here?
Also, just to add insult, the BT website still offers NEW customers my package at the previous price of £26/month. What is that all about???? Pretty peeved. I'm paying £2.65/month + vat extra..when I negotiated my contract renewal it was on the basis of a fixed price. This stinks!
You should have had a notification many weeks ago of the impending price rise, and it would have given you the option of cancelling your contract without penalty within 10 days of the notice.
I don't defend it, but offering preferential terms to attract new customers is common practice amongst service providers.
Also, just to add insult, the BT website still offers NEW customers my package at the previous price of £26/month. What is that all about???? Pretty peeved. I'm paying £2.65/month + vat extra..
BT are very good at hiding their ongoing prices. It is sneaky in my opinion.
This much is clear on the website:
Unlimited BT Infinity 2 + Weekend Calls
£20 a month for 3 mths
then £26 /mth for 15 mths
But that's not the end of the story. If you drill down to the well-hidden T&C, you will see "From month 19 you'll pay £28 a month".
The other ISPs don't hide their regular ongoing price in this manner. But as you can see, there is a subtle £2 increase at the end of the minimum term.
Is there any evidence of BT using the same "retention" tricks as the mobile phone operators? Over the past couple of years I have dragged my monthly bill with Orange (now EE) down from >£25 to <£6. (First I bought my own phone, then I threatened to move and got as far as getting a new SIM.)
I just start the "I'm out of here" process only to get a phone call matching the deals I have found elsewhere.
It really is time for Ofcom to stomp on all those bundles that make it impossible to work out real costs and tie your broadband access to line rental.