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!