Bills for broadband customers set to soar in 2023 says Which?
Broadband customers could face a £113 hike in annual bills next year if UK internet providers implement inflation-driven price increases, new research from Which? has found.
With inflation set to hit almost 10% in January 2023, according to forecasts from the Bank of England, telecoms companies will be able to increase the price of broadband by around 14%.
That’s because BT, TalkTalk and other providers use a mechanism linked to the consumer price index (CPI) to raise the cost of services accordingly, even if that occurs during a customer’s contract.
Which? found that in the midst of a cost-of-living crisis, BT customers will potentially have to fork out an additional £113 on their bills.
EE, TalkTalk and Vodafone customers will also have to pay an extra £105, £90 and £92, respectively.
Even Plusnet customers, who are set for the smallest hike, will still see broadband soar by £87.
Due to the fact that contracts are usually taken out for either 18 or 24 months, customers will have no recourse as prices skyrocket.
Which? director Rocio Concha believes that this is “unacceptable” and says that broadband providers should allow customers to switch to another service without a penalty if this happens next year.
“Customers should be allowed to leave their contract without penalty if prices are hiked mid-contract, regardless of whether or not these increases can be said to be ‘transparent’,” Concha added.
When asked to comment on the findings, BT stated that it makes it clear to customers that prices can rise in line with inflation mid-contract.
In contrast, Virgin Media and Sky don’t use the inflation mechanism and allow customers to leave without a penalty if they push through rate hikes.
The upcoming price increases come at a time when a record 8 million households are already struggling to afford telecoms bills.