A billing enquiry has got me thinking... My contract is for a specific amount, and for some reasons appears on my bill as a costlier product, rectified down with a static discount. Is this a common thing?
I wonder if my discount will also increase annually by inflation+3.9%? It should do - or it feels like a be a breach of contract because they will end up charging slightly more than the agreed 3.9%+inflation.
If the annual increase is applied as a 3.9%+inflation On the undiscounted rate, minus a static discount, the net increase to my bill will be marginally more than 3.9+inflation. The value of my discount will decrease over time.
e.g:
If my contract is for £25.00
£25.00 + (let's assume 10% for simplicity) = £27.50 after March 2023
But if my £25.00 contract is supplied as a £27.50 product with a static discount of £2.50
£27.50 + (the same 10%) = £30.25.
And then subtract the £2.50 = £27.75 after March 2023
Which would be £0.25 per month more than my contractual rise based on my initial contracted price. This will compound into year 2 and beyond...
... Unless my discount also increases by the same 3.9%+inflation each year. In the example above the discount would rise to £2.75, giving the overall billable amount of £27.50
