Major broadband provider with one million customers axe 'sneaky' charge

A major broadband provider with one million customers is set to AXE sneaky mid-contract price hikes and increases. Plusnet, part of the BT Group, has said it will no longer raise prices mid-contract based on a percentage linked to inflation.

The change is designed to reflect Ofcom’s recent move to BAN broadband ISPs and mobile operators from doing mid-contract price hikes that are linked to confusing inflation and percentage-based changes. The first broadband and mobile providers to announce their intention to adopt this approach became BT and EE during April 2024.

A Plusnet spokesperson told ISPreview: “Our focus is to provide Plusnet customers straightforward broadband at straightforward prices. From the 9th July 2024, we will be introducing a pricing model aligned with Ofcom’s approach, offering our customers a predictable long-term view of their contract terms. These new contracts will make it simpler for our customers and provide more certainty on what annual price changes will be.”

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"We are very supportive of Ofcom’s recommendation to show upfront pounds and pence amounts for price change and remain committed to supporting all our customers, especially those who are financially vulnerable.” For all new contracts signed up on or after 9th July 2024, a price rise of +£3 per month will be effective each March from 2025 onwards.

Existing customers who want to re-contract their package will also become subject to the same change of terms. Ernest Doku, telecoms expert at Uswitch, said: "Uswitch welcomes the greater clarity given to consumers by Plusnet’s decision to change to a ‘pounds and pence’ model for future mid-contract price increases.

"The new model provides certainty when it comes to the cost of your contract and makes it easier for customers to manage their finances. This move aligns with parent company BT who were the first provider to announce the new approach to mid-contract price rises earlier this year, followed by Vodafone more recently."