BT Price Increase

Received email from BT on 27th June 2018 informing me they will increase their charge to me by £2.50 per month.
I signed a contract with BT for their Unlimited Infinity on 4th April 2018, service started on 19th April 2018.Contract price was £29.99 for 18 Months.This contract included Line Rental.
Phoned BT spoke to someone in Ireland then they put me through to the UK.
The person informed me that the price increase was because of a Mandatory Price increase by the Regulatory Authorities WHICH BT AND ISPs WERE OBLIGED TO FOLLOW.
Difficult to believe/understand this information given to me by their spokesman.
Have NOT seen anything relating to this on Thinkbroadband.
Does anyone know of this, in other words is this correct.
Hekpoort

I think any comment that it is forced on them is junk.

BT site talks about the price rise here.

I wonder if the notification says anything about being able to leave without penalty? Or have they got it set at a figure that technically doesn't trigger that.

I don't see anything on the page you linked to about releasing in-term customers.

£1/m line rental increase is enough to trigger the 30 day notice period

As for regulatory, flat WLR and 40/10 has dropped in price, but the effect on BT Group of lost revenue might mean retail are compensating.

Message is do what Ofcom encourages which is switch

Switching isn't always an easy option. (For instance, I would lose access to BT Sport which for an enthusiastic sports fan would mean being unable to watch Premiership Rugby.)
Sky or Virgin as a carrier would be much more expensive in total.

The rises are infuriating but I'm stuck with them, and I'm sure that BT have factored this in when making the decision

The joys of a market that has been bundle driven since 2006 and various rule changes have compounded that

And today, BT line-only rentals to be cut to what is now the obvious level they belong at.

Maybe that is the regulatory moved they are referring to.

As for being the obvious level then Ofcom could impose a retail ruling across the board, but would need to get past objections from others who would have to lower prices, i.e. likely line rental goes down, broadband goes up and status quo remains for majority

I quite agree.

What has been so wrong for so long has been the ridiculous rises in line rental by the big firms to cross-subsidise their broadband prices. Compulsory quoting of the bundled price rather than giving the two prices equal fonts and prominence simply made it worse.

BT Consumer being of course the worst offender as they have the psychologically trapped older generation, many of whom still don't have broadband.

I for one moved my line when I discovered I was paying over £24 a month once they added in things I didn't need but couldn't easily avoid.

Thanks for comments.
I agreed an 18 Month Contract with BT for £29.99 including line rental.
Three months into the contract THEY inform me of a price increase.
Is a BT CONTRACT price now worthless and of no value.
So BUYER BEWARE WITH BT.

BT are no different in this respect than most other ISP, TalkTalk for the most part excepted.

> Is a BT CONTRACT price now worthless and of no value.

Whilst the underlying cost may increase you should still be benefit any discounts for the full length of the original contract. So if you singed up for a contract offering £10pm less than the standard rate you should still expect to pay £10pm less than the increased standard rate. No contract, no discount. Contract, any discount continues for the length of the contract.

In reply to a post by helpoort:

Thanks for comments.
I agreed an 18 Month Contract with BT for £29.99 including line rental.
Three months into the contract THEY inform me of a price increase.
Is a BT CONTRACT price now worthless and of no value.
So BUYER BEWARE WITH BT.

Oh we do - that's why we are not with them. oddly enough all that page says is to call them and they will adjust the bill if you are not happy. Says nothing about leaving them.

Edited by deleted (Sat 30-Jun-18 10:10:13)

Take advantage and switch. You can usually get cashback by doing so, and get on a cheaper introductory deal.

Then in nine months when they repeat their "yearly" price increases, do the same thing again.

Are these emails being rolled out gradually over the customer base? No email received here yet.

In reply to a post by Discus:

Are these emails being rolled out gradually over the customer base? No email received here yet.

Yea i spoke to BT today regarding something else and they said they were staggering it out as my letter had not come out yet, only been with them for 3 months so i'm going to just ship

All1

Thanks, will wait for mine then.

Aint there a new law/rule that allows you to leave a contract if theres a price increase you dont agree too ?

Yes, you can terminate the contract with some but not all increases, for example line rental and broadband.
From my e-mail.
"If you want to leave and you're within your minimum contract term,
you'll need to call us within 30 days from the date of this
email to avoid paying a charge for leaving early. You'll need to give
us 30 days' notice to leave (or 14 days if you're switching
to a new provider). We won't charge you for any increase in price
during that time."

Mine came via letter for some reason.

Usually with things like this larger companies will stagger the emails/letters over several weeks, so their customer services don't all get swamped at once.

Have read all the posts.
As far as changing ISP,s I did not want any further hassle within three months of changing to BT.
I was with my previous ISP for 8 years
Still have not found out the reason/explanation for the price increase.
I have today 2nd July taken the trouble to write ( I prefer writing to an email) to the Managing Director, BT Correspondence Centre, Durhan DH 98 1 BT asking for an explanation..
Previously I asked Talk Talk what they could offer me for a similar deal the answer was a price of £35.00 against BT,s £29.99. the only advantage was that Talk Talk would not increase their price for the duration of the 18 months contract.
£2.50 increase per month is not a major factor but the sheer annoyance of it.

I have today 2nd July taken the trouble to write ( I prefer writing to an email) to the Managing Director, BT Correspondence Centre, Durhan DH 98 1 BT asking for an explanation..

Historically BT increase their prices in September each year and this year appears to be no different. As a private company answerable to its shareholders this is its right so unless a mass of BT shareholders stand up at the next AGM and object to this policy I doubt that it will change.

BT phone and broadband Ts&Cs

Will the charges increase?
We may increase the charges at any time. Read clauses 20 and 21 of these terms and conditions for more details. If you change a service, you'll pay the charge for the new service from the day we agree it starts.

How much notice will I get if you increase the charges?
We'll tell you before we put the charges up. If we increase any of the core charges shown in your order confirmation, or make any other changes which put you in a significantly worse position, we'll let you end a service without having to pay the higher amount or a charge for leaving early.

Will a service change?
It's important you realise that we may change a service (including the equipment and service features), the charges and the terms and conditions of the agreement at any time (even during the minimum term).

In some cases we'll tell you first. If the change puts you in a significantly worse position, you'll be able to end the agreement without paying fees for leaving early.

You may also be able to change a service by contacting us.

Have posted recorded delivery letter this afternoon, 2nd July, address as indicated in previous post.
As far as Terms and Conditions goes.
I HAVE NEVER received any terms and conditions to read as indicted.
My agreement with BT was made over the telephone.
The spokesperson stated the price and THAT THE PRICE WOULD INCREASE IN 18 MONTHS TIME.
THERE WAS NO MENTION OF ANY OTHER PRICE INCREASE PRIOR TO THIS.
Hence my initial post.

I don't know what Ts&Cs they go through on the phone - but as it stands either you have been mis-sold in which case you could move on without penalty or the Ts&Cs stand in which case you could move on without penalty.

If the agent told you the price wouldn't change then they need re-education as that is not the BT Ts&Cs.

And the short is that with the rules around price rises you can move without penalty without having to go through writing letters

If the aim of the letter is to get BT to honour the price you signed up to for the full 18 months, which won't happen.

One provider does fixed price guarantee services - TalkTalk only if millions move to them is it likely that other providers will follow suit.

TalkTalk like the fixed price system as it is reducing churn

So you entered into a contract with BT over the phone without first having read or viewed and advert setting out the offer? Any advert would almost certainly mentioned that there were conditions. Nevertheless as has been mentioned repeatedly in this thread you can terminate your contract without penalty. As both Andrew and myself have also mentioned move to TalkTalk if you want a fixed price connection for the duration of the contract. TalkTalk alone offer this.

Reason for letter was as stated, asking for AN EXPLANATION of the their PRICE INCREASE.
Two call centre spokespeople COULD not give a reason.
I have no interest in any statement from BT regarding their prices NOW or in the FUTURE.
'Once bitten etc,etc'.
Have been looking for another supplier.
Have a deadline of 30 days from their email of 26th June 2018 to leave without cost.

You're wasting your time and money. Do you ask the same question of your water company, your local council, your baker, butcher or candlestick maker?

May I suggest that in future you check the terms and conditions especially when buying an on-going service either on line or on the phone.

Oddly my Price Rise email may have got bounced by Go Daddy, as I only received the forwarded email to my gmail account.

At the bottom of the letter it says

If you want to leave and you're within your minimum contract term, you'll need to call us within 30 days from the date of this email to avoid paying a charge for leaving early. You'll need to give us 30 days' notice to leave (or 14 days if you're switching to a new provider). We won't charge you for any increase in price during that time.


Thank you for choosing us � and we hope you continue to get the best out of our services.

The thing to remember - if BT are putting their prices up it is a fair chance other ISPs will do the same to remain competitive..

In reply to a post by blfamily:

The thing to remember - if BT are putting their prices up it is a fair chance other ISPs will do the same to remain competitive..

LOL

They would improve their competitiveness by not raising their prices. By raising them they maintain their competitive position and increase their profit per customer.

In most retail trading in the UK, gaining customers at a lower profit per customer generally increases total profit .

If BT answer it will just be that they are price rises to keep up with increasing costs. You aren't going to get any detailed breakdown as to why they have risen. As others have said you are wasting your time and money asking and as already shown it was in the Ts&Cs. The best you can hope for is that they will let you go without penalty but as that is already the offer there is no additional benefit to you.

The reason the call centre people couldn't give you an answer is there is no answer that would satisfy you and they aren't involved in the complex calculations that BT will do to balance costs and prices - they just answer the phones. And BT won't give much away as anything they say could be used for competitive advantage by other ISPs.

Energy suppliers are not allowed to increase prices during fixed price contracts. I see no reason why broadband and phone suppliers should be allowed to increase prices during contracts.

Because there is no law to stop them and Ofcom haven't made any requirement to do so - Ofcom have taken the other route of giving people a get out of jail free clause when prices go up.

I shall REPEAT, I was not given ANY terms and conditions by any means.
There is a radio advert running now.
The offer is Fibre Infinity for £29.99 (the same as I agreed too.
All that it takes is to phone BT.
I doubt the operator on the BT side will speak of all these so called terms and conditions (20 etc) as mentioned in another post.
I would like a poster to state the above terms and conditions were given verbally.

Regarding the waste of a letter to BT.
Once I receive an answer/explanation.
I shall write a letter to the CEO of BT AS A SHAREHOLDER AND ASK HIM FOR AN EXPLANATION AS TO THIS PRACTICE.

In reply to a post by ian72:

Because there is no law to stop them and Ofcom haven't made any requirement to do so - Ofcom have taken the other route of giving people a get out of jail free clause when prices go up.

Yes indeed, my point was the lack of consistency in the government's approach to utility pricing.

In reply to a post by helpoort:

I shall REPEAT, I was not given ANY terms and conditions by any means.
There is a radio advert running now.
The offer is Fibre Infinity for £29.99 (the same as I agreed too.
All that it takes is to phone BT.
I doubt the operator on the BT side will speak of all these so called terms and conditions (20 etc) as mentioned in another post.
I would like a poster to state the above terms and conditions were given verbally.

Why are you shouting at me? I haven't been criticising your actions.

My post you replied to was laughing at the content of blfamily's post . Read it!

In reply to a post by Michael_Chare:

Energy suppliers are not allowed to increase prices during fixed price contracts.

Because they are advertised as fixed price contracts. Only TalkTalk advertise fixed price contracts, so only TalkTalk is obliged not to increase their prices during the contract.

ΔWe may change any prices and terms during your contract. If this affects you, we'll tell you about important changes in advance, and you'll be able to end your contract without any fees.

You sure that the operator/sales person did not slip this in. Very easy to miss a short line line like this at some point in a call.
I have to read longer one's and we still get people calling back saying they did not have them read. Call monitored and it's clear as day that it was read out. People tend to turn off.
I make a joke that you do not have enough time to make a brew before starting

Ask for a copy/script of the call

Putting it politely. You don't really seem to have any idea as to how businesses operate or how they generate profit. You also appear to fail to understand that you didn't enter into a fixed price contract but rather a contract for a specific discount for a specific length of time. A contract which by no stretch of the imagination have BT broken. Further you have the right to cancel due to the underlying price having risen.

Are there any electricity contracts for several months which are not fixed? There were none in the recent comparison site email that I got.

I wonder if the ease of switching is relevant. To switch energy supplier you just have to make a phone call or maybe update some web pages. To swap broadband (and phone) supplier you also probably have to make an equipment change (or update) when the change takes place and there is some risk of losing a phone number.

In short broadband suppliers can get away with in contract price increases because it is awkward for their customer's to leave.

In reply to a post by Michael_Chare:

Are there any electricity contracts for several months which are not fixed? There were none in the recent comparison site email that I got.

I don't know.

In reply to a post by Michael_Chare:

I wonder if the ease of switching is relevant. To switch energy supplier you just have to make a phone call or maybe update some web pages. To swap broadband (and phone) supplier you also probably have to make an equipment change (or update) when the change takes place and there is some risk of losing a phone number.

In exchange for avoiding a setup fee, ISPs typically retain you in contract for a year. There's no way they'd recoup the cost of free broadband equipment and the wholesale cost of migrating the line if the customer leaves after a month or two.

In reply to a post by Michael_Chare:

In short broadband suppliers can get away with in contract price increases because it is awkward for their customer's to leave.

Or rather it allows them to avoid charging a setup fee. Regardless, Ofcom regulations stipulate customers can still leave penalty-free if a price rise occurs, which will likely result in a financial loss for the ISP if this is within a month or two of the switch.

Edited by Oliver341 (Tue 03-Jul-18 23:45:15)

You appear to be missing the point. With the exception of TalkTalk as far as I am aware no ISP offers a fixed price contract. Perhaps I should also include FTTPoD. What Sky, BT, PlusNet, et al. offer is a contract with a discount fixed for the duration of the contract with the customer having the right to vacate the contract if the underlying price before discount is increased.

In reply to a post by MCM:

You appear to be missing the point. With the exception of TalkTalk as far as I am aware no ISP offers a fixed price contract. Perhaps I should also include FTTPoD. What Sky, BT, PlusNet, et al. offer is a contract with a discount fixed for the duration of the contract with the customer having the right to vacate the contract if the underlying price before discount is increased.

Agreed, when we moved over to FTTP we worked a deal for a price where I got a very good discount like £20+ discount already pay line rental yearly.

That contract run out so I phoned BT and got the exact same amount of discount and also same when I moved over to Ultrafast 2 Plus and I am sure when I become out of contract that I would get the same discount as I currently have.

So yeah , its not a fixed price, but more of a fixed discount which in my mind is still good.

Paul

What I think would have been be a more sensible letter for the OP to have written to the BT Chairman would be one not asking why the underlying price had been increased but instead asking why BT don't offer fixed price contracts similar to those offered by TalkTalk rather than their current fixed discount contracts.

The OP could then have given reasons why it might be in BT's interest to offer fixed price contracts including that currently some users not having read the T&Cs mistakenly believe they have entered into a fixed price contract when in fact they have entered into a contract with a fixed discount.

Yeah, well I know when I moved from ADSL 2+ to Infinity 4 I was quoted the T&C though it was fast and the sales person was short of breath once they had finished.

I just asked what parts could make me worse off and they said price increase and options being removed, but they did say always let their customers know of the changes within a month before the changes etc.

One thing I have never been told especially on ADSL 2+ was the speeds I would and should get.

With Ultrafast 2 Plus I was told 330Mbps down and 50 Mbps up, no up to but a fixed speed, I did comment I will connect up at those speeds but in the evening it will become an up to that speed. She became confused, I goes either way I am fine with it.

When ever we become out of contract I just phone them and ask what's the best that they can do and if there is other ISP's that can do the same but cheaper I say so and most of the time they will match that price via a discount.

Paul

I totally agree. The price quoted becomes meaningless if less than a month later a supplier notifies a price increase in the knowledge that a consumer will choose not to leave because of the hassle involved.
I'll be lobbying for change to this practice as it needs a political airing

I know that this same practice is used by EE for mobile contracts - they offer a discount over the contract term (and beyond the minimum contract) but they can increase the base price during the contract.

Looking at BT's broadband deals page it isn't clear in the main text that prices may go up but under "The Legal Stuff" it does say:

We may change any prices and terms during your contract. If this affects you, we'll tell you about important changes in advance, and you'll be able to end your contract without any fees.

This should also be part of the agents standard script that they read out if ordering over the phone.

Ofcom is NOT the Government

Paul

In addition to your comment. When you get your letter you will find that the BT plus is NOT affected as it was a fixed price for x ( usually 18) months.

This is also being offered to people on their offers with the price increase,
eg I can take a £2.50 rise ( to £47.49)
Or recontract at the same price as before ( discounted) for 18 months ( £44.99)
Or move to BTplus at the same price as the £2.50 rise fixed for 18 months ( No increase within the 18months) Also get doubled data on my mobile deal. ( £47.99)

Thus by taking BT PLUS I fix my price for 18 months but pay £2.50 more now, or take the discounted offer ( same price as before) but price can rise within the 18 month term.

OP Always look at the offer BT makes or ring retentions!

All prices would revert to £58.99 after 18 months if I do nothing, which is very unlikely!

I make that a £3 increase if you went for Plus. Interesting that all the offers for Plus came just before the price increases, I suspect the launch of Plus was deliberately timed knowing that a price increase was on the cards.
I have decided to stay put. I am on ADSL (since I have no need for fibre speeds) six months into contract and with a £12 introductory discount until next June. Line rental paid in advance until January. Recontracting would just tie me up and make it less easy to move when my 18 months is up - and lets face it BT ADSL is grossly over-priced and without the introductory discount not worth while. £2.50 more now, possibly another increase before next summer, but at least I am free after then. And contrary to some on here I DO need the landline and anytime calls.

Postman delivered my broadband increase today also, I am nearly at the end of my contract anyway so will be trying someone else. I had a problem with my line a few moths ago and had the Bombay nightmare until I eventually had help from UK based support. The UK help is excellent its just getting to it in the first place that lets BT down drastically.

Still not had my notification yet. I suppose I will have to contact them and find out. What a pain in the 'arris!!!

I just signed-up to BT�s heavily-promoted £29.99pm deal, and at no point during the process have I been informed that the price is already set to increase. The service goes live on Monday.

It is unbelievable that they continue to advertise and sell a deal they already know they cannot honour for the full term. Fair enough that it �might� go up during the contract term but now they�ve informed existing customers of an increase, they also need to adjust their marketing so as not to mislead potential customers.

Interestingly when you got to the top of the BT page where they list their broadband deals these is a note "Some of our prices are changing on 16th September 2018" which when clicked lists changes to various call rates but makes no mention of changes in the prices of the various packages. This would suggest that the price for the listed packages won't be increasing in September although they may do so later.

At the bottom of the page under Important Information, The legal stuff it does say "Prices and terms subject to change during the contract term."

If you have the "get out of jail free" email and decide to notify BT Cancellations, best to explicitly ask them if there will be a termination charge, and if they say there is, read out the appropriate part of the email. Only then did they click the no charge button on their form when I started the transfer of my mother's line.

I understand where you coming from, noone has really done a legal challenge of the practice.

I just visited the BT retail website to see how things are worded and displayed on their store page.

So the pricing area gives the impression you get the displayed price for duration of contract which is 18 months.

If you scroll down, you see this line.

We may change any prices and terms during your contract. If this affects you, we'll tell you about important changes in advance, and you'll be able to end your contract without any fees.

Now you do have to scroll down quite far, the website is designed for mobile phone users, so a long narrow page with lots of scrolling.

Ofcom would do absolutely nothing, BT are simply carrying out a policy that ofcom has already agreed to.

The ASA would they uphold a misleading advertising complaint? Based on their historical decisions, my opinion is no given what BT are doing is common in the industry and that ofcom also back this practice. A court would probably side with BT as BT do display that bit of information in their ToS. This does not breach any consumer sales regulations that I am aware off.

Basically you can.

1 - put up with the price increase, stay with BT.
2 - move to another provider to try and save the money again you lost on the increase.
3 - Lobby for a new approach to broadband pricing regulations that make this kind of practice illegal.

In short a contract with BT is never really an 18 month commitment either from them or you, because of their regular price increases, customers always have a penalty free opt-out. You could try to contact retentions, explain you effectively not in contract due to the price rise and see if they will offer you a deal to stay, I dont know if their retention staff can offer deals in these situations tho.

You could try to contact retentions, explain you effectively not in contract due to the price rise and see if they will offer you a deal to stay, I dont know if their retention staff can offer deals in these situations tho

Usually the price rise email has a link to a "personal offer" that can give you discounted prices. I did this last year and got £20 a month off of Infinity 2 for the year. It does require signing up to a new minimum term but they can be decent and competitive deals without ever having to pick up the phone to talk to retentions.

Agreed, I have always phoned and got a better deal / discount than what has been in their emails, but it would depend on who you speak to I guess.

We are currently on Ultrafast 2 Plus which has the price freeze for the 18 months, but on top of that I managed to get a very good huge discount.

Since we have moved over to Fibre we have had no real big issue with our connection that a quick phone call cannot fix, so when our 18 months are over I will be phoning BT again to see / get another good deal and sign up for another 18 months.

So there is no reason why people cannot upgrade to BT Plus (assuming that feature is available to them) and also get a discount when they renew for 18 months and have a low fixed price.

Paul

I rang them earlier in the week - the link in the email didn't work as it was one of the nasty phishing type going via doubleclick. Upgrading to infinity unlimited from ADSL at exactly the same price - new 18 month contract yes, but my original introductory discount has been replaced by a new slightly higher one running the whole 18 months. Worth asking.

In reply to a post by dsergeant:

I rang them earlier in the week - the link in the email didn't work as it was one of the nasty phishing type going via doubleclick. Upgrading to infinity unlimited from ADSL at exactly the same price - new 18 month contract yes, but my original introductory discount has been replaced by a new slightly higher one running the whole 18 months. Worth asking.

Can I ask if you had to pay for new HH6 router?

In reply to a post by 961a:

In reply to a post by dsergeant:

I rang them earlier in the week - the link in the email didn't work as it was one of the nasty phishing type going via doubleclick. Upgrading to infinity unlimited from ADSL at exactly the same price - new 18 month contract yes, but my original introductory discount has been replaced by a new slightly higher one running the whole 18 months. Worth asking.

Can I ask if you had to pay for new HH6 router?

No, free delivery of the router and no £59 fibre installation charge. He said when asked I didn't even need to return the HH4 (which I am not using anyway...).

Many thanks, most useful

In reply to a post by dsergeant:

I rang them earlier in the week - the link in the email didn't work as it was one of the nasty phishing type going via doubleclick. Upgrading to infinity unlimited from ADSL at exactly the same price - new 18 month contract yes, but my original introductory discount has been replaced by a new slightly higher one running the whole 18 months. Worth asking.

You probably have BT Plus as well, that price is slightly more but is fixed for the 18 Months, but with the discount on top works out good.

We went from Infinity 4 to Ultrafast 2 Plus and also got a very good discount for the 18 Months.

Just need to remember to contact BT again when the 18Months are up to negotiate a new price.

Paul

No, not BT Plus, and he didn't even mention it (and without a BT mobile or any smartphone I have no interest in it anyway). Price can rise during contract, he did remind me of that.

In reply to a post by MCM:

You're wasting your time and money. Do you ask the same question of your water company, your local council, your baker, butcher or candlestick maker?

We don't yet (as mere residential consumers) have the option to change water supplier, but that will be coming... but I take your point.

However, I see it as a "matter of principle" that the written letter is being sent, and might get a "salaries and other costs go up with inflation, hence the prices rise slightly" response.

It's not too unreasonable a response under current circumstances, but inevitably won't be very satisfactory to the person making the enquiry.

Edited by deleted (Sat 21-Jul-18 14:34:09)

In reply to a post by Chrysalis:

Basically you can.
1... 2...
3 - Lobby for a new approach to broadband pricing regulations that make this kind of practice illegal.

I think that to do so would merely bump up prices a few quid, across the board, at least for the 'big 5', as they know that a one-off price rise may cause some churn, but would overall benefit them in terms of income, and lower customer service loads once "leavers" had been dealt with... (and the last to raise their prices might be worried about being overloaded, so I suspect as soon as one upped their fees, the remainder would quickly follow - not be left behind)...

Before anyone suggest this is improbable, I remember a few years ago when Sky raised their prices by quite a few pounds per month, and while there was hardly any competition then, my feeling (and calculations) showed that if they lost 5% of customers they were still going to have an overall increase in income... so a vote with your feet | wallet may sometimes have little or no overall effect, and you might find that re-joining later may be more costly.