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Standard User Carbis
(learned) Wed 07-Apr-21 16:13:33
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Plusnet (and others) Annual charges to be 3.9% + CPI


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Starting this year and for every following year Plusnet state:
"On or after 1st June 2021 we’ll take the CPI percentage rate published by the Office for National Statistics in April of that year and add an extra 3.9% to the rate.
On or after 1st March every year from March 2022, we’ll take the CPI percentage rate published by the Office for National Statistics in January of that year and add an extra 3.9% to the rate."

Isn't this classic compound interest that will tend rapidly to infinity?

Even if the CPI is zero, you pay 3.9% this year.
Then 3.9% Plus 3.9% of the previous years 3.9% i.e 4.1%
4.22% the following year...
and that's without +CPI part.

Perhaps that's where the 'plus' in Plusnet comes from?

Edited by Carbis (Wed 07-Apr-21 16:14:09)

Standard User dect
(knowledge is power) Wed 07-Apr-21 16:31:25
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: Carbis] [link to this post]
 
In reply to a post by Carbis:
Starting this year and for every following year Plusnet state:
"On or after 1st June 2021 we’ll take the CPI percentage rate published by the Office for National Statistics in April of that year and add an extra 3.9% to the rate.
On or after 1st March every year from March 2022, we’ll take the CPI percentage rate published by the Office for National Statistics in January of that year and add an extra 3.9% to the rate."

Isn't this classic compound interest that will tend rapidly to infinity?

Even if the CPI is zero, you pay 3.9% this year.
Then 3.9% Plus 3.9% of the previous years 3.9% i.e 4.1%
4.22% the following year...
and that's without +CPI part.

Perhaps that's where the 'plus' in Plusnet comes from?
Other providers are also doing the same thing with there new contracts.
Standard User ian72
(eat-sleep-adslguide) Wed 07-Apr-21 16:37:27
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: Carbis] [link to this post]
 
No, it isn't going to go to infinity any time soon but it is compound interest.

At 3.9% per annum a £20 bill this year in 20 years would be £41.37. In 100 years it would be £883.02.

Inflation has often times in the past been higher than 3.9% but we don't all have infinite costs for food/services. It is a higher than inflation rise (by definition) but the chances are that every time your contract comes up for renewal that you will be able to negotiate a deal with them.


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Standard User Pheasant
(experienced) Wed 07-Apr-21 17:26:27
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: Carbis] [link to this post]
 
There is really no reward for loyalty.

[I have to remind myself of that when I get my renewal premium for my (insert car/bike/home/business) insurance each year!]

My Broadband Speed Test

Edited by Pheasant (Wed 07-Apr-21 17:37:48)

Standard User Carbis
(learned) Wed 07-Apr-21 17:35:41
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: Pheasant] [link to this post]
 
True. Always use the "I'm thinking of leaving" phone option, you get answered quickly and politely and renewed at a discount...
Standard User longedge
(experienced) Wed 07-Apr-21 17:52:26
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: Carbis] [link to this post]
 
Agreed, although occasionally an agent might have used his allocation of discounts for the month in which case leaving it for a day and trying again has always worked for me.

plusnet FTTC 55/10
Using a Fritz!Box 7530

Live BQM
Standard User amiga_dude
(learned) Wed 07-Apr-21 18:46:43
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: Carbis] [link to this post]
 
Take read of this guide , yes about Virgin Media but same issue might apply here. So thought might like to know. Now I dont know if you can use this get out jail card because I don't have copy of Plusnet TC's.

https://www.uswitch.com/broadband/guides/virgin-medi...
Standard User Carbis
(learned) Wed 07-Apr-21 19:59:44
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: longedge] [link to this post]
 
A very useful tip. Thanks
Standard User RobertoS
(elder) Wed 07-Apr-21 21:03:32
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: Carbis] [link to this post]
 
I haven't looked in depth through Plusnet's T & Cs pages, but when I used to a lot they always covered all the historical ones as well if you followed the correct links.

Messy, but comprehensive.

My broadband basic info/help site - www.robertos.me.uk. Domains, sites and mail hosting - Tsohost & Ionos.
Connections: OnePlus 8 Pro max 165Mbps down, 24Mbps up on Three, and B311 4G, tbb tests normally 35-45Mpbs down, 65Mbps off-peak, 9-24 up.
========================
The EU’s multiple failures are due to a deeper malaise .... What malaise? The EU’s formidable immunity to the smallest amount of democracy. New Statesman Feb 2021.
Standard User ashdown
(regular) Wed 07-Apr-21 21:07:01
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: Carbis] [link to this post]
 
It makes me relieved that my ISP (Zen) commits to no price rises at all while I remain a customer.

I do wonder how Plusnet and others can justify such enormous and regular increases (other than exploiting presumed customer lethargy), especially as the cost of providing telecom services generally declines over time.

I remember the days when making a telephone call to the other end of the country was something to be considered very carefully indeed....
Standard User longedge
(experienced) Wed 07-Apr-21 21:11:21
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: ashdown] [link to this post]
 
And in those days, if you knew the local dialling codes exchange to exchange you could make a long distance call for the cost of a local call smile

plusnet FTTC 55/10
Using a Fritz!Box 7530

Live BQM
Standard User zyborg47
(legend) Wed 07-Apr-21 21:25:30
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: Carbis] [link to this post]
 
Well certainly look at other options at the end of my contract, I will see how far Zzoomm have got as well, not that I am bothered about the higher speed.

Adrian

Desktop machine Ryzen powered with windows 10 , reluctantly.

Plusnet FTTC
Standard User Whitehall11
(regular) Wed 07-Apr-21 23:25:01
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: ashdown] [link to this post]
 
In reply to a post by ashdown:
It makes me relieved that my ISP (Zen) commits to no price rises at all while I remain a customer.

I do wonder how Plusnet and others can justify such enormous and regular increases (other than exploiting presumed customer lethargy), especially as the cost of providing telecom services generally declines over time.

I remember the days when making a telephone call to the other end of the country was something to be considered very carefully indeed....


BT Group finally trying to make money off it's purchase!
Standard User rxp
(newbie) Sat 10-Apr-21 07:31:34
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Re: Plusnet (and others) Annual charges to be 3.9% + CPI


[re: Carbis] [link to this post]
 
Mine's fixed until Dec 2021, they do offer fixed price.

Inflationary price rises is a big revenue driver in the industry. Commercial teams eye call traffic, rentals etc. to try and drive extra revenue. They even have metrics for churn % in relation to price rises so a nice revenue increase can be met without high churn. That's the Teco industry
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