Ofcom's new regulations, stating that price rises have to be displayed in pounds and pence have come into force today. While the regulator is billing them as a triumph of consumer clarity, what is actually happening is providers are using the regulation to enforce price rises way above the rate of inflation. And we don't think that's fair.
This is what we've had to say:
"It is disappointing to see that some providers have used Ofcom’s regulation to display price rises in pounds and pence as an opportunity to make price rises even higher.
"Plusnet’s £3 price, for example, is a 12% increase for customers on its cheapest packages.
"Similarly, Virgin Media’s cheapest and most popular package costs around £23 per month. So its £3.50 price rise represents a staggering increase of 15%. This is higher than the price rise we saw in 2023, at the height of inflation.
"It is sadly unsurprising that some broadband providers have seemingly used this legislation to rake in extra profits. Ultimately, the spotlight is on Ofcom.
"What we are seeing comes as a direct result of crude regulation that has clearly been ill-thought-out and the implications of it not given enough consideration.
"As ever, we believe the only solution is for Ofcom to finally abolish price rises entirely, once and for all. It’s possible for some providers to offer fixed prices, why can’t the ones with the biggest profit margins follow suit?
"For customers, we recommend seeking out providers with fixed price promises. Many operate at a local level, so check what’s available in your area using a comparison site."
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