Exact date ‘confusing’ bill rises will be banned in rule change affecting millions of mobile, broadband and TV customers
THE exact date a major rule change affecting millions of mobile, broadband and TV customers is set to come into force has been revealed.
Regulator Ofcom said that it would ban mobile phone carriers and broadband providers from linking prices to high inflation figures in the middle of a customer’s contract.
New rules from the watchdog, confirmed today, will force companies to be upfront by telling their customers in pounds and pence about any price rises included in their contract.
Many major phone, broadband and pay TV companies now link their price rises to future inflation rates.
That “unfairly” puts the burden of shouldering inflation costs onto customers, Ofcom said.
It said that people “cannot predict” inflation and “do not understand (it) well.”
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“We have decided to ban this practice,” the regulator said.
The rules have previously been branded "confusing" and "sneaky".
From January 17 next year, any price rise in a contract will need to be laid out in pounds and pence.
It is confirmation of rules that the regulator said that it was looking at in December last year.
Ofcom telecoms policy director Cristina Luna-Esteban said: “With household budgets squeezed, people need to have certainty about their monthly outgoings.
“But that’s impossible if you’re tied into a contract where the price could change based on something as hard to predict as future inflation.
“We’re stepping in on behalf of phone, broadband and pay TV customers to stamp out this practice, so people can be certain of the price they will pay, compare deals more easily and take advantage of the competitive market we have in the UK.”
BT, EE and Plusnet already announced it would be making the change back in April.
Plus, Vodafone has said it will no longer apply inflation-linked price rises for consumers and some small business customers.
But Tom MacInnes, interim director of policy at Citizens Advice, said while the change is welcome, customers could still be caught out.
He said: "Mobile and broadband customers have faced years of unfair, unpredictable and above inflation mid-contract price rises.
"The announcement today falls short of a full ban on prices rising mid-contract.
"This means that customers might still end up being caught out by above inflation rises in April next year."
How to save on your mobile phone bill
NOT happy with your current mobile phone deal?
If you’re outside the minimum term of your contract then you won't need to pay a cancellation fee - and you might be able to find a cheaper deal elsewhere.
But don't just switch contracts because the price is cheaper than what you're currently paying.
Take a look at how many minutes and texts, as well as how much data you're using, to find out which deal is best for you.
For example, if you're a heavy internet user it's worth finding a deal that accommodates this so you don't end up spending extra on bundles or add-ons each month.
Also note that if you're still in your contract period, you might be charged an exit fee.
Ready to look elsewhere? Pay-as-you-go deals are better for people who don’t regularly use their phone, while monthly contracts usually work out cheaper for those who do.
It's worth using comparison websites, such as MoneySupermarket and uSwitch.com, to compare tariffs and phone prices.
Billmonitor also matches buyers to the best pay-monthly deal based on their previous three months of bills.
It only works if you’re a customer of EE, O2, Three, Vodafone or Tesco Mobile and you’ll need to log in with your online account details.
There's also MobilePhoneChecker, which has a bill monitoring feature that recommends a tariff based on your monthly usage.
If you’re happy with your provider then it might be worth using your research to haggle a better deal.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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