Consumer watchdog Which? is sounding the alarm on the telecoms industry, warning broadband customers of potential unexpected charges totalling £150 over their contract period. The organisation is launching ‘The Right to Connect’ campaign, urging providers to end unpredictable mid-contract price hikes.
Major broadband firms, including BT, EE, Virgin Media, and others, regularly raise prices annually, tying them to indices like the Consumer Price Index (CPI) or Retail Price Index (RPI) plus additional percentages. This practice could result in average increases of over 8% in 2024 for many customers.
Which? estimates that customers of BT, EE, Virgin Media, and others could face significant annual increases, with Virgin Media subscribers potentially experiencing over 10% hikes. The campaign emphasises the impact on consumers, who might already have faced more than 14% price hikes in 2023.
The consumer champion’s campaign outlines potential extra costs for customers who signed contracts in January 2023. BT and EE customers, in particular, could face among the highest average price hikes over their 18 or 24-month contracts.
Which? deems it unfair, and possibly unlawful, for consumers to face uncertain costs and punitive exit fees due to unpredictable mid-contract price hikes. The campaign aligns with consumer sentiment, with around 78% of consumers considering such hikes as always unfair, according to separate Which? research.
Ofcom is currently reviewing mid-contract price rises, and ‘The Right to Connect’ campaign calls for providers to halt the practice ahead of Ofcom’s final decision. In the long term, Which? advocates for a complete ban on these unpredictable mid-contract price hikes to ensure pricing certainty for consumers.
Rocio Concha, Which? Director of Policy and Advocacy, expressed outrage over the continuation of unpredictable mid-contract price hikes. She called on providers to cancel the 2024 price hikes and urged Ofcom to ban these practices, emphasising that consumers need certainty about their contract costs.
