Ernest Doku, telecoms expert at Uswitch.com comments on Plusnet’s change that from 11th July all new contracts will include details of “pounds and pence” cost increases:
“Uswitch welcomes the greater clarity given to consumers by Plusnet’s decision to change to a ‘pounds and pence’ model for future mid-contract price increases.
“The new model provides certainty when it comes to the cost of your contract and makes it easier for customers to manage their finances.
“This move aligns with parent company BT who were the first provider to announce the new approach to mid-contract price rises earlier this year, followed by Vodafone more recently.
“In line with other providers, Plusnet’s new model will see it apply mid-contract charges at a flat rate for all customers, which is a yearly increase of £3 per month.
“While this approach does offer simplicity and certainty, customers on cheaper tariffs will see their contracts increase by a greater percentage, relative to the initial cost.
“For example, deals that cost £20 a month initially will see a yearly increase of 15%, whereas deals that cost £30 will see an increase of 10% meaning some customers may end up paying more than they would have when they were inflation linked.
“Like other providers, Plusnet’s change excludes existing customers and out-of-contract customers, who will still be subject to inflation-linked and percentage-based price hikes come next year.
“As Ofcom is expected to rule on banning inflation-linked increases in the near future we will likely see more providers make similar announcements to this.
“It will be interesting to hear Ofcom’s actual ruling in light of these recent changes which see providers trying to take a balanced approach ahead of the hard and fast rules coming into place.
“If you are signing-up to a new contract, carefully review the terms related to mid-contract price rises to make sure you’re clear on the total cost.
“There are also some providers who don’t raise their prices mid-contract so it could be worth exploring what’s on offer elsewhere.”
Harriet Atkinson
Telecoms PR Manager
harriet.atkinson@uswitch.com
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.
