If you’ve noticed or been notified by your broadband provider that your price is going up, you may be wondering whether you have to pay the new amount. The answer to this question depends on a few different factors, so it’s important to understand your rights and options.
First of all, it’s worth noting that broadband providers can raise their prices at any time, either on a yearly basis or with an ad-hoc price hike. Most providers raise their price in line with the Consumer Price Index (CPI) and/or the Retail Price Index (RPI).
If you’re not happy with the price increase and want to leave your broadband provider, you should check your contract to see whether you’re still within the minimum term period. If you are, you may be charged an early termination fee for leaving early if your terms and conditions mention an annual price increase.
If a service provider decides to raise their prices and the terms and conditions of your agreement don’t mention the increase, you should be able to terminate the contract without facing any penalty charges. This means that you are not obligated to pay any early termination fees or charges for ending the contract early due to the price hike that was not previously agreed upon.
For example, BT’s terms and conditions state that prices will increase annually at the Consumer Price Index (CPI) rate of inflation, plus 3.9%. Other providers may have similar clauses, so it’s important to read the small print to understand your rights.
If you’re outside the minimum term period, you should be able to switch to a new provider without an early termination penalty.
It’s also important to keep an eye on any changes to the terms and conditions of your contract and to read any notifications carefully to avoid being caught out by unexpected price increases.
If you’re still unsure about what to do, you can contact your broadband provider to discuss the price increase and your options. You may be able to negotiate a better deal or switch to a different package that better suits your needs.
Overall, while it’s frustrating to have to pay more for your broadband service, there are rules that providers must follow, and you do have options if you’re not happy with the price increase. Ofcom has launched a review into this particular practice.
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