Written by Mary Lennighan
Before we all get too excited, it's important to note firstly that this is just a proposal from the regulator at this stage, and secondly, that it will not put a block on mid-contract price rises altogether. If it gets the go-ahead, Ofcom intends to make comms providers spell out upcoming price rises written into contracts in pounds and pence, rather than the current 'inflation plus X%' model.
This is not about keeping prices down for consumers. It's about customers understanding what they are in for and having the information to enable them to seek out a better deal, should they so desire.
"At a time when household finances are under serious strain, customers need prices to be crystal clear. But 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," said Ofcom CEO Dame Melanie Dawes.
"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," Dawes said.
