A huge change for anyone who has a mobile phone or broadband contract officially starts today.
Ofcom will from Friday, January 17, enforce new rules about mid-contract price rises.
It means phone and broadband companies, whether EE, O2, Vodafone, Three, Virgin, Sky, BT, TalkTalk or another provider, will no longer be allowed to raise your price in the middle of your contract without notice being given to you ‘in pounds and pence’ at the start of your contract, as well as notice of when they will occur.
This means customers will be able to choose a contract featuring information in pounds and pence ahead of annual price rises in April.
The rules also ban price rises linked to inflation, although it will still allow companies to raise prices mid-contract.
Last April many deals rose by 7.7%, in line with the Consumer Price Index announced in February as 4% plus an additional 3.9%.
Other deals rose by up to 8.8% in line with the Retail Price Index, which was 4.9%, plus 3.9%.
During the cost of living crisis, some broadband providers put prices up by as much as 16-18% in the middle of contracts, blaming high inflation, and stuck another 4% on top.
Ofcom said: “As we have seen in recent years, inflation can be incredibly volatile and is difficult to predict.
“Our rules will protect consumers from bearing that risk, and ensure providers are clear about prices customers are obliged to pay over the whole contract period.”
Any price rises written into a customer’s contract also now need to be set out “prominently and transparently”, at the point of sale.
Natalie Black, Ofcom’s group director for networks and communications, said: “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.”
