One of the biggest “try ons” by large corporates…and they’re getting away with it. Broad band price increases and airtime price increases. These little clauses are dreadful and go roughly.
Most Broadband -Each year, we adjust the prices of some of our products and services in line with the Consumer Price Index (CPI) rate of inflation, plus 3.9%. Price increase of 14.3% (CPI in Dec 22 was 10.5%)
Many Mobile Plans - Each year, your Airtime Plan will be increased by the RPI rate of inflation announced in February plus 3.9%. If RPI is negative, we’ll only apply the 3.9%. You’ll see this change on your April 2023 bill onwards. Price increase of 17.3% (RPI in Dec 22 was 13.4%).
RPI is always higher number than CPI….however what these companies are really telling you is this!
- Whatever the rate of inflation is, we will apply it, whether our costs have stayed the same, increased or reduced
- we have absolutely no incentive to become more efficient, or compete
- we WILL increase our profits by at least 3.9% per year guaranteed
- you WILL have your costs increasing by at least 3.9% and if inflation drops back to 3% almost 7% per year…this WILL definitely happen
This means that if inflation drops to 3% today…for broadband your actual real world cost not including inflation will increase by 50% in almost 10 years. The amount you will be paying will actually double though. How on earth has no one complained about this, or campaigned against this. We’re just all being rinsed again by another set of corporates.
