Virgin Media stands out among broadband providers by using the Retail Price Index (RPI) to calculate mid-contract price increases, while other companies rely on the Consumer Price Index (CPI). The RPI, although no longer a national statistic, currently exceeds the CPI and has faced criticism as an inflation measure,” according to Ms. Concha.
Which? has lodged a complaint with Ofcom, drawing attention to a clause in Virgin Media’s terms and conditions that allows the company to change charges at any time, potentially breaching consumer rights. Virgin Media denies this claim, stating that the clause applies to fees such as out-of-allowance and admin charges, as opposed to monthly subscription charges.
Virgin Media spokesperson explains, “We have been transparent about price increases and have informed customers about introducing inflation-linked changes from April next year, which aligns with industry norms and provides customers with greater billing certainty. Customers were informed and given the option to cancel their contracts within 30 days.”
The company maintains that inflation-linked price rises only affect monthly subscription charges and that there are no plans to increase bills multiple times in one year. Any separate increases in out-of-bundle charges would be clearly communicated, allowing customers to cancel if desired.
Ofcom has acknowledged Which?’s concerns and is currently investigating Virgin Media for potentially hindering customers’ attempts to cancel services. Customers have reported difficulties reaching agents by phone, with calls being cut off or put on hold for extended periods.
An Ofcom spokesperson states, “We have an existing enforcement program to ensure telecoms companies comply with our rules regarding clear communication of mid-contract price rises. We are also reviewing the adequacy of inflation-linked, mid-contract price increases in providing customers with certainty and clarity about their future payments. We will provide updates on both of these matters later this year.”
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