EE to raise prices by 2.7% in May

Household money

Updated on 14 April 2014 | 2 Comments

EE will increase the price of monthly mobile phone plan charges by 2.7% in May, but not everyone will be hit.

EE has announced that it will be raising prices by 2.7% from 28th May.

EE defended the move, saying it was in line with the Retail Price Index (RPI, a measure of inflation) figure for March. However, this change will not affect prices for customers who joined after 23rd January.

Why prices are rising

EE released the following statement to explain its decision: “We know price rises are never great news, but we work hard to keep costs down while offering our customers great value on the UK’s biggest and fastest network. As a result of rising business costs, we are increasing the price of EE, Orange and T-Mobile monthly plans.”

Why doesn’t the price rise affect everybody?

Customers who joined or upgraded after the 23rd January have a different set of terms and conditions in their contracts.

Their terms and conditions changed after Ofcom declared that customers should be allowed to leave fixed-term contracts without penalty if the provider increases the monthly rate halfway through the contract. The guidance states that “Ofcom is likely to regard any increase to the recurring monthly subscription charge in a fixed-term contract as ‘materially detrimental’ to consumers,” which would allow customers to leave their contracts without incurring a fee.

So if the provider has not warned you about a price rise on a contract bought after 23rd January 2014, you can leave for free. This doesn’t just apply to mobile phones, but to landline and broadband contracts too.

Compare mobile phone deals with Recombu

Can I avoid the hike by leaving?

It’s possible to leave a contract before it ends under the old terms and conditions, but you will be expected to pay an early termination fee. The exact size of that fee will vary, depending on your tariff and the length of contract remaining.

You could possibly argue that the price increase constitutes ‘material detriment’ under Ofcom’s General Conditions, and get out without paying, but there’s no guarantee that will work.

Compare mobile phone deals with Recombu

More on mobile phones:

The UK's worst mobile phone provider

Buy a mobile phone from Giffgaff with a peer-to-peer loan

Freephone numbers to be free on mobiles

Cap set on mobile providers' charges if your phone is stolen

Comments

Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.