Ofcom rules are changing to make it fairer for telecoms customers to switch contracts if prices change halfway through a contract.
From today telecoms customers can leave their phone or broadband provider without penalty if the provider raises its prices mid-contract.
Many people on fixed-price contracts with telecoms providers have seen prices rise in the past few years. Despite the contract being ‘fixed’, the small print will allow the provider to increase prices mid-contract in some circumstances.
More than 1,000 complaints were looked at during the Ofcom investigation into pricing between June and August last year. The regulator found that 10 companies, including BT, Sky, Virgin Media and Vodafone had pushed prices up mid-way through ‘fixed-term’ customer contracts
But new Ofcom rules come into force today, meaning mobile phone, landline or broadband customers will be given 30 days to switch provider should prices be raised mid-contract. Customers will be given the same 30-day window if a provider makes changes to a contract, for example cutting the amount of data included.
[SPOTLIGHT]Claudio Pollack, Ofcom’s Consumer Group Director said: “We have reached an important milestone in our work to ensure consumers and small businesses have better protection against unexpected price increases.
“Additionally, our new guide highlights important factors customers might want to consider before entering into a new contract to help them understand exactly what they are signing up to.”
Compare broadband and landline deals with broadbandchoices.co.uk
Price rises
Today’s news won’t stop providers from increasing prices, but does give customers some leeway to switch providers. Nearly all the major suppliers regularly put up prices. Just last week EE announced a 4.4% line rental hike.
But it doesn’t cover price increases outside of a regular subscription price. These can include international calls, calls to Directory Enquiries or premium rate numbers so if you’re going to be using these check the price first among all companies.
Read How to call 0800, 0844, 0845 and 0870 numbers free from your mobile
Switching telecoms companies
Ofcom has produced a checklist for customers thinking about switching.
It lists points to look out for, such as checking the description of the service, the key charges, payment terms, the existence of termination rights, the dates the service will be provided and any minimum length of contract.
Providers make their biggest profist from people sticking with them through apathy, so reserve their best deals for new customers. Therefore by switching you can take advantage of discounts and freebies which will knock a lot off the total cost.
Read Why it never pays to stay loyal to broadband, TV and phone companies
For example, through broadbandchoices.co.uk, if you join Sky as a new customer you'll get 50% off your package for a year and get a £25 Marks & Spencer voucher. And with BT you can get a £50 Sainsbury’s giftcard if you choose Infinity.
Compare broadband and landline deals with broadbandchoices.co.uk