Change to annual price rises, after agreeing to contract

[#1]

I signed up to a new Plusnet contract on 7th July 2024 for Fibre broadband (FTTC), at £23.99 per month. Previously I was already with Plusnet on a Standard broadband contract which was nearing its end on 8th August 2024.

For the new contract the terms stated annual price rises would be due 1st March each year of CPI + 3.9%. This was the same as the arrangement on the existing contract.

I received emails confirming the details of my new package including the above terms for the annual price rises.

My new service was activated on 15th July 2024.

I then received a further email stating my product change was complete. However, this email now said that the annual price change each March would be £3, i.e. different from what I signed up to.

I’m not very happy with this. If CPI stays at its current level of 2% then the initial proposed annual rise would be £23.99 x 0.059 = £1.42 per month, which is less than half of the later proposed rise. In fact a £3 rise would equate to 12.5%.

Surely this part of my contract agreement cannot be altered after I have signed up?

[#2]

@Nick_W I see what you mean, but people were complaining that CPI+3.9% was excessive, so those providers who used that formula ( most of the mainstream consumer ones), were told to drop the +3.9% element. They did that, but agreed  with the regulator that a flat £3.00/pa increase would replace it. A little anti-consumer, I agree, but if that is what OFCOM agreed...

[#3]

@jab1 My main point is that I agreed to the terms of a contract as set out by them, but now they now appear to want to unilaterally change those terms.  I don't think that is acceptable.

[#4]

The change applies to all contracts, not just yours, and is set out in the 'Terms & Conditions' part of the current contract document. A company has the right to modify those T&C's as it sees fit, but has to notify customers of such changes - which PN has done - in your case at least.

[#5]

@Nick_W the changes to the contract terms are detailed here https://www.plus.net/help/legal/terms/

From what that says, the new terms apply to contracts agreed AFTER 11 July. So from what I can see, you should be on the old terms. It may be that the email you received is an automated one and is using the contract activation date rather than the contract agreement date.

Hopefully a staff member will pick this up and respond

[#6]

Thanks for the correction, @MisterW 😉 . As I hadn't looked at the details, I was unaware of this duality, but it makes sense.

Thank goodness I don't have to suffer it.

[#7]

I tweeted Plusnet earlier today about this, and received a reply, but then they haven't acknowledged my subsequent DM.  So I thought I would post on here too.

From past experience any billing "errors" manifest themselves very readily, but seem very difficult for Plusnet to reverse.

[#8]

Isn't it strange how the bigger Internet Service Providers, (and some of the smaller ones!), feel the "need" to increase their prices mid-contract? That doesn't happen with energy suppliers. 🤔

Yet some of the "smaller" providers, (I think that Zen is one of them?), state clearly that their prices will not change for the duration of the contract!

.

[#9]

And they (Zen), still honour their 'Price for Life'  promise - I think - if you don't change product/service.

[#10]

@jab1 

"And they (Zen), still honour their 'Price for Life'  promise - I think - if you don't change product/service."

Thanks for the tip.

Currently, I'm planning to move to Zen, (FTTP via CityFibre), when my current Plusnet FTTC deal nears expiry early next year - or sooner if the Early Termination Charges come down a bit more!

I'll certainly try to remember to ask them about that.

.

[#11]

@Mr_Paul Unfortunately, that scheme is now legacy, you only get fixed costs over the length of a contract.

[#12]

@jab1 

Ah, OK - I guess that is why they still only offer 18 month contracts whereas most other providers now insist on 24 months.

.

[#13]

Still good value though, IMO - I'm paying less for 100/20 FTTP than I was for 40/10 FTTC. Don't have the VOIP £6.00/mo extra, but still have a Digital Phoneline' as they switched me to SoGEA when I was on FTTC, and let me keep it when I moved to FTTP. It is not used for outgoing calls - all those have been on a mobile for 3 or 4 years, but it is still used by a couple of my contacts for calling me, and I suppose I could use it for 0800 numbers.

[#14]

@jab1 

Assuming that I do move to Zen for the broadband, I'm currently planning to use A&A for VOIP.

Like you, we don't use the FTTC landline anyway - it is just for the alarm dialler mainly, which I am fairly confident will work having spoken already to A&A.

[#15]

Yes, Zen discontinued the price for life for new customers in 2022 (I do not know if they still honour it for pre-existing customers of that date).  As @jab1 said they do not have price increases in contract, and they do not have exorbitant out of contract prices according to the rep I spoke to when I signed up to them about a month ago. As far as I could gather, they will merely let you carry on on a monthly basis at their then current price which seems likely to be your current price adjusted by CPI or thereabouts. They say that they will, however, offer you a new contract at a loyalty price.