EE and O2 to put prices up in March

Find out how your mobile bill will be impacted.

EE and O2 will put their contract prices up by 1.3% from 30th March 2016.

The rise reflects the Retail Price Index (RPI) rate of inflation, announced on 16th February, which mobile providers can use to adjust prices each year in April.

Ofcom rules allow mobile firms to do this as long as it is clearly stated in the terms and conditions at sign-up, so unfortunately if you’re affected it’s unlikely that you will be able to leave your contract penalty-free.

Here’s what you need to know.

O2 price rises

O2 will put prices up by 1.3% on its pay monthly (including the O2 Refresh Airtime plan), SIM-only, standard and mobile broadband tariffs.

If you joined or upgraded before 17th February 2015 you will receive a message about the adjustment and how it impacts your bill. If you joined after this date O2 should have already informed you about how prices will change.

As well as a hike to your monthly bill, from April O2 will increase charges for calls outside of your monthly allowance, international calls and additional services.

We’ve set out the changes below.

An O2 spokesperson said: “We’ve adjusted our monthly tariff charges by 1.3% in line with the annual RPI change that we apply to our contracts each year. This adjustment means an extra charge of 22p per month for customers on our most popular pay monthly tariff. We continue to invest in our network and the services that matter to our customers while still offering great value for money.”

Compare mobile deals with Recombu

EE price rises

EE’s 1.3% price rise will impact those who joined or upgraded to a pay monthly, SIM-only or 4GEE WiFi/ mobile broadband contract between 26th March 2014 and 10th February 2016.

Those that started their contract before 26th March 2014 won’t be affected by the 1.3% rise as the terms of these contracts do not allow for annual inflationary rises.

For those that got a contract after 10th February 2016 you won’t see any change this year, but your contract will allow for annual inflationary price rises in following years from March 2017.

An EE spokesperson said: “As the UK’s biggest, fastest and most reliable network we work hard to offer our customers great value. Like many service providers, our Pay Monthly plans increase by RPI annually. This year our customers will see a typical rise of less than 50p a month. We’re currently contacting our customers to remind them this will take effect from 30th March 2016.”

What you can do

Ofcom introduced new rules on 23 January 2014, which allows mobile and broadband customers subject to mid-contract price rises to leave penalty-free.

However, the rules allow providers to make annual inflationary rises each year as long as this is stated in the terms and conditions at sign-up.

So unfortunately, if you are unhappy with the O2 or EE price change and are still within your contract, it’s unlikely you will be able to leave penalty-free.

But if you are out of your contract’s minimum term or on a rolling one-month one you can leave without charge.

If you joined before 23rd January 2014 you might be able to leave fee-free under old Ofcom rules which state you can leave your contract without charge if you can prove the price rise will cause you "material detriment".

Earn up to 5% from your current account

Read these next:

The UK's worst energy companies

Relish, Fuel Broadband, Plusnet: can you get a cheaper broadband deal with firms you might not have heard of?

Asda, Tesco, Giffgaff, Virgin Mobile, Lebara: how to get cheap access to EE, Three, O2 and Vodafone's mobile network