By Pedro Goncalves, Finance Reporter, Yahoo Finance UK
Broadband bills could surge by as much as £54(US$66.77) this April as some the UK’s biggest telecoms firms push ahead with inflation-busting price increases.
Providers often link their annual price rises to January’s consumer price index (CPI) or the retail price index (RPI). Despite a slight easing this month, both are near the highest they’ve been for 40 years, with the latest CPI at 10.5 per cent and RPI at 13.4 per cent.
BT , EE, Plusnet and Vodafone broadband contracts allow prices to go up by CPI plus 3.9 per cent. At TalkTalk, it is CPI plus 3.7 per cent, while Shell Energy can add CPI plus 3 per cent. Sky and Virgin Media contracts allow mid-contract price increases but they do not stipulate a pricing formula in the same way as rivals.
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BT has confirmed an increase this year of 14.4 per cent — CPI of 10.5 per cent plus 3.9 per cent.
Consumer group Which? is calling on providers to drop penalties for customers leaving mid-contract amid concerns of impending “exorbitant” price rises or exit fees of more than £200.
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Rocio Concha, Which? director of policy and advocacy, said: “It’s hugely concerning that many broadband customers could find themselves trapped in a lose-lose situation where they either have to accept exorbitant — and difficult to justify — mid-contract price hikes this spring or pay costly exit fees to leave their contract early and find a better deal.
