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Aspiring Contributor
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Message 1 of 11

What figures are CPI calculated on ?

Hi, I have been trying to figure out how the 1.3% CPI monthly increase is calculated.  My package is £27.99 per month for broadband and landline. I have already paid line rental saver in advance for which £19.99 is taken off my monthly bill leaving me currently paying £8 per month. 

The increase BT have quoted me is 35p per month.  

1.3% of £8 is 10.4p so how they have calculated the remainder of the increase?  If it has been levied on the line rental this seems rather unfair as they are charging me for a price rise on something I have already bought and paid for.  In any event, I'm still unable to work out exactly how they've got to the figure they have?  

Does anyone know or have any ideas as to how this is worked out?

Many thanks

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Expert
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Message 2 of 11

Re: What figures are CPI calculated on ?

I'm not 100% but it could be based on the whole price and not the discounted rate

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Aspiring Contributor
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Message 3 of 11

Re: What figures are CPI calculated on ?

I don't think so because I did call BT for an explanation and the person I spoke to said it was based on my package price of £27.99.  Although she couldn't tell me exactly how it was worked out she did imply the line rental was included in the calculation.  The full price of my package per month without the discount is £16 for broadband and landline (plus line rental) so I still can't figure out how they get to 35p.

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Distinguished Sage
Distinguished Sage
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Message 4 of 11

Re: What figures are CPI calculated on ?

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Contributor
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Message 5 of 11

Re: What figures are CPI calculated on ?

The full price of your package. £27.99 x 1.3% = 36.4p is close enough.

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Aspiring Contributor
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Message 6 of 11

Re: What figures are CPI calculated on ?

Hi thanks for the link but I still can't find specifically how BT will deal CPI increases on line rental saver paid in advance.  What I suspect they are doing is charging me for a CPI increase on line rental for the period from 31 March to when the line rental saver period ends - a tricky calculation to do manually to check if this is the case. 

If this is right, it still seems unfair to charge an increase on something already paid for  (I wouldn't expect a shop to subsequently bill me for a CPI increase on an item I bought 3 months ago) but no doubt there is something in the extra small print which covers this!

Anyway, I realise that these are relatively small figures we are talking about but my maths brain always likes to know how figures have been arrived at!

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Recognised Expert
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Message 7 of 11

Re: What figures are CPI calculated on ?

I actually rang BT on the 3rd to ask the very same thing. The rise quoted in my email was based on the discounted broadband rate but including line rental. Even after getting someone to actually understand the query they still had absolutely no idea.

However based on what happened when I was on a fixed price contract with renewing LRS part way through the system used the higher rental rate to work out a revised payment which was £1 less per month.
Based on this I would hazard a guess that given the rudimentary systems used by BT that when the bills are generated with the CPI increase the line rental portion of the bill will have been increased and so the corresponding monthly LRS adjustment will also increase.
That would result in the net monthly payment increasing by CPI but it's just a guess at the moment.

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Newbie
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Message 8 of 11

Re: What figures are CPI calculated on ?

Hi.  I wondered the same thing and have been trying to work it out. I also have Line Rental Saver.

 

Worked out it the cost of Broadband & Landline including discount.  Mine is £31.99 and with monthly discount it is £23.99.  1.3% works out to 31pence.  My increase is going to be 30 pence, but it's near enough.

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Message 9 of 11

Re: What figures are CPI calculated on ?

Hi folks,

 

I was wondering how do I depict how much will be added on to my bill come April... with the extra CPI added on to the bill.. I have been reading this thread but it doest make much sense to me. Is it extra pennies per month or is £££s per month.  Many thanks for your help and advice in advance. 

 

Very much appreciated. ☺☺☺

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Recognised Expert
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Message 10 of 11

Re: What figures are CPI calculated on ?

The CPI will be calculated on the full package price including the line rental (£29.99 for example). If you pay line rental saver in advance then the £19.99 you've paid in advance will still be removed from the monthly charge

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