Millions of Households to Face Inflation-Busting Price Hikes for Broadband and Phone Bills Next Year Despite Ongoing Price Probe
Millions of households currently under broadband and phone contracts will experience price hikes exceeding eight per cent next year.
Despite an ongoing investigation by regulator Ofcom to assess the justification for such mid-contract price increases, these hikes will not be prevented due to the probe’s delayed completion.
Broadband bills: Ofcom will be unable to stop next year’s hikes because its probes will not be completed in time
According to Ofcom, despite ongoing consultations, next year’s price increases will proceed, subjecting customers to another year of substantial hikes.
In the previous April, providers imposed mid-contract increases ranging from 13 to 14 per cent, resulting in some households paying £100 more than the previous year.
Ofcom was urged by Wealth & Personal Finance to ban mid-contract price hikes due to fairness concerns, as customers who signed up for a deal would not know the final amount they would be paying by the end of their contract.
While Ofcom expressed its intent to investigate the issue, it lacked the authority to prevent the price hikes. Moreover, Ofcom will also not be able to halt substantial price increases in April next year.
Most providers have included clauses in customers’ contracts stating that they will increase bills every April based on inflation rates plus an additional 3.9 percentage points. With inflation predicted to be around 4.7 per cent in January, providers could raise bills by over eight per cent in total.
Dame Melanie Dawes, the Chief Executive of Ofcom, addressed this issue by stating, “We won’t be able to change the rules in time for that [the April price rises], but this is why alongside looking at whether or not to take full regulatory action we’re also bringing this [issue] up with the providers all the time.”
She also mentioned that Ofcom is examining industry compliance with current regulations and determining if stricter measures are necessary.
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