Ofcom has kicked off its Telecoms Access Review (TAR) 2026, an evaluation of the regulations that will apply to the UK fixed telecoms markets from April 2026 until March 2031.
Wed, 13/12/2023 - 16:09
Ofcom is proposing tougher protections for customers by banning inflation-linked mid-contract price rises.
The new consumer protection plans laid out by the regulator require providers to tell customers upfront about any price rises included in their contract.
Analysis by Ofcom shows that as of April 2023, four in ten (11 million) broadband customers and over half of mobile customers (36 million) were on contracts subject to inflation-linked price rises.
It estimates that these numbers may grow to around six in ten. Between January and October 2023, Ofcom received over 800 complaints related to price rises – almost double the volume of complaints received during the same period in 2021.
Dame Melanie Dawes, Ofcom’s Chief Executive, said: “Most people are left confused by the sheer complexity and unpredictability of inflation-linked price rise terms written into their contract, which undermines customers’ ability to shop around.
“Our tougher protections would ban this practice once and for all, giving customers the clarity and certainty they need to secure the best deal for their needs and budget.”
Others in the industry have come out in support of this move from Ofcom.
Richard Tang, Zen CEO, said: "Broadband companies have been tricking customers for years by advertising one price but then hiking the price mid-contract in a way that customers don’t understand.
“It’s great to see that Ofcom has now taken those companies to task by proposing to ban this unethical practice. Zen fully supports Ofcom’s proposal, as it will provide consumers with much greater clarity and certainty over what they will pay for their broadband services."
Quickline CEO Sean Royce added: “These hikes are not fair, they are not appropriate and they are not right, more so now than ever before with the cost-of-living crisis, when every penny points.
“Consumers need the reassurance that the price they sign up for is the price they will pay, in pounds and pence and for the full duration of their contract.”
