There’s good and bad news for millions of BT broadband customers with the Internet Service Provider (ISP) announcing a major change to how it hikes bills each year. The ISP says it wants to make things clearer and fairer for its millions of users by adding a standard amount to prices rather than using the current method which is set against inflation.
Right now, BT uses the Consumer Price Index rate (CPI) plus an added 3.9 percent to set its cost increases. With inflation at record highs, this has seen bills shoot up by over 13 percent.
However, that’s about to change with BT boss Marc Allera confirming that it will soon make things more transparent.
“We will introduce a pricing model consistent with Ofcom’s approach, moving away from % figures and CPI, and offering instead, a clear and simple view of any changes in “pounds and pence,” Allera explained on BT’s website.
“For new and re-contracting mobile customers we expect this increase to be from £1.50 (for Sim Only and Airtime, for example), and for broadband customers £3.”
That’s clearly good news for many but sadly the changes won’t come into effect until the summer which means millions of homes will be hit by that CPI rate (currently 3.9% plus BT’s added 3.9%). It could mean bills rocket once again this year by over 7 percent.
It’s got some experts angry with Which?’s Director of Policy and Advocacy, Rocio Concha calling it shamless.
“While it’s positive that BT is finally calling time on unpredictable inflation-linked price rises, it would be cynical to try to claim too much credit for a change they would likely have been forced to make later this year by Ofcom – after years of charging customers above-inflation price hikes that reached double digits at the height of the cost of living crisis,” said Concha.
“Meanwhile, new BT customers signing up between now and this summer will still be hit by unfair and unpredictable price hikes.
“BT appears to be using this price change announcement as cover for the shameless decision to press ahead with yet another inflation-busting price increase this April, even after the regulator found this practice causes ‘substantial harm’ to broadband and mobile users.
“It is within BT and other providers’ power to cancel plans to go for one last cash grab from customers using unfair and discredited above-inflation price hikes this year. They must do so and then commit to ensuring no-one faces unpredictable price increases in future.”
