Firms such as BT, Sky, Vodafone, EE and Virgin Media must abide by new rules from today that will make yearly price rises more transparent. Until now, the usual spring cost hikes were tricky for UK users to understand with telecom firms able to hide the exact amount things are going up by. Rises were often displayed in percentages and could be tucked in the terms and conditions.
“In recent years, many phone, broadband and pay TV companies have included price rises in their contract terms that were linked to unknown future inflation rates,” Telecoms regulator Ofcom explained.
“These terms made it complex and laborious for customers to estimate what they will pay under a new contract, and complicated the process of shopping around for a deal. We have now banned this practice.”
Things are now changing. From today all broadband and phone suppliers now have to follow new rules set by Ofcom.
This means when you sign up for a new contract you’ll see the exact rise shown in pounds and pence – this should help homes budget for the future and end the shock of seeing things suddenly rise by an unexpected amount.
SEE THE OFCOM CHANGES IN THE IMAGE BELOW
For example, under the old system, a firm could simply say – in small print – that the monthly price will increase each April by the Consumer Price Index rate plus an addition 3.9%. Customers would then need to find the CPI rate (which constantly changes) then find out how much they currently pay and then do the sums to see what the new price will be.
Now, when signing up for a deal homes will see much bigger text and real figures displayed so there’s no uncertainty.
It’s hoped this will give consumers clarity and certainty about the prices they will have to pay, helping them choose the best deal for their needs.
“More than ever, households want and need to plan their budgets. Our new rules mean there will be no nasty surprises, and customers will know how much they will be paying and when, through clear labelling.” Natalie Black, Ofcom’s Group Director for Networks and Communications.
