topic Re: RPI - 2024 in Pay Monthly

RPI - 2024

Dave-O2 — Mon, 19 Feb 2024 10:00:09 GMT

Hey folks

Every year, we adjust the prices of our products and services to be in line with the Retail Price Index (RPI) rate of inflation as is set out in your terms.

From April 2024, the monthly price of your mobile plan will be increasing. We will be letting you know so you can plan ahead and be prepared.

If you joined from 8 February 2024 then you will not see a price increase until April 2025.

This years RPI was published on 14 February and is 4.9%

Some more details can be seen HERE and in the below FAQs ↘️

What’s happening?

Each year we introduce an annual price adjustment to our mobile tariff prices for existing
customers based on the RPI (Retail Price Index) rate. In 2021 we introduced RPI + 3.9% for new
and upgrading customers. The RPI rate was published on 14 February. Starting from late February, impacted O2 customers will receive a communication informing them directly of their price increase.

Why are prices changing?

This is a contractual term which we have to apply consistently, but in addition to this, we are facing
substantial increases in the costs associated with running our network and supporting our
customers. As well as impacting households, higher inflation has a significant impact on our own business costs – from energy to equipment.

We appreciate that price increases are never welcome, but with demand for connectivity greater than ever, it is vital that VMO2 is able to keep investing in the fast and reliable services consumers rely on. Customer demand for data has almost doubled in the last three years, so we are investing to increase network capacity and roll out 5G coverage, recently surpassing 50% of the population. We are committed to continuing to deliver the best possible value and experience for our customers.

How do you justify these price increases?

We recognise price changes are never welcome, and always balance keeping our prices
competitive with the need to continue investing. We continue to provide excellent value for
connectivity our customers are using more than ever. For example, mobile usage was up by 26%
last year. We want to keep innovating and improving the services that our customers use and love.

Hasn’t Ofcom said you can’t do this?

Ofcom’s recent announcement and consultation don’t impact this price rise. Ofcom is currently consulting on its proposals to change in-contract price rises for future contracts,with a final decision set to be published in spring 2024 and any new rules to come into effect after that. We will of course comply with any new rules or guidance that may come into effect at the appropriate time.

Can I cancel my contract as a result of this increase?

Customers aren’t given a right to cancel because of this price increase. Customers who joined prior to 25 March 2021, were informed when they took out or upgraded their contract that their Pay Monthly airtime tariff will be adjusted annually in line with the retail price index rate of inflation in their April bill. Those who joined or upgraded after 25 March 2021 were also notified at point of sale that their bill
will rise by the rate of RPI + 3.9% each April.

All customers are required to check a box when taking out a new contract/upgrade in store or on online, which confirms their agreement that the tariff will increase annually. Customers on the phone agree verbally to a mandatory compliance script they’re read by agents. This is also provided to customers in their T&Cs.

Customers on O2 Refresh can leave anytime by paying off their Device Plan. Customers who took out a contract after certain date can pay off their device plan in installments. However, just to remind you, if you took out your plan after 17 December 2021 your airtime and device plans unlink after 24 months, which means that after this point you can either continue with your airtime and device plan, cancel your airtime plan and continue paying off your device plan in instalments, or cancel both your airtime and device plan as long as you pay off your device plan in full.

I have a discounted tariff, do you apply RPI /RPI+ to the discounted rate or the original tariff?

We apply RPI to the discounted rate that the customer pays each month.

Which customers will have the RPI increase applied to them?

The price adjustment will be applied to Pay Monthly, Sim Only, Watch & Mobile Broadband. Pay & Go customers aren't affected.

I’m on a non-Refresh tariff, will RPI be applied to my whole bill?

Yes. On O2 Refresh, we only apply price change to the airtime portion of the bill.

Does this affect other services like bolt ons?

The price of a Bolt On is unaffected. This relates only to the monthly airtime plan charge for
Consumer customers.

You can find more help and advice on this, including a useful calculator which will show you what your NEW monthly bill amount will be and how it's worked out HERE

Re: RPI - 2024

gmarkj — Mon, 19 Feb 2024 10:53:18 GMT

Really helpful summary this @Dave-O2 .

Are you adding a # tag so it can be referenced? Maybe "#rises"?

As a follow up, previously the date for signing up was end of March. This has, in this instance, been brought forward to February. Is this date going to be the same next year (so 8th Feb 2025) or is this still subject to change?

Re: RPI - 2024

Dave-O2 — Mon, 19 Feb 2024 11:30:47 GMT

Thanks @gmarkj

is the tag that can be used 👍

Regarding your question this will be subject to change.

Re: RPI - 2024

gmarkj — Mon, 19 Feb 2024 11:34:35 GMT

Thanks @Dave-O2 !

Re: RPI - 2024

pgn — Mon, 19 Feb 2024 16:00:29 GMT

You can find more help and advice on this, including a useful calculator which will show you what your NEW monthly bill amount will be and how it's worked out HERE

The most important bit for many: what will it mean for MY Airtime (Device Plan is excluded) or MY bundled (if purchased from anyone other than O2 direct) bill every month after April is at the link @Dave-O2 gives HERE.

Good job, @Dave-O2! 👍

Re: RPI - 2024

Dino1968 — Mon, 19 Feb 2024 16:26:05 GMT

I took out my new Sim only deal after paying of my handset - on the 8th Feb so I wonder if I will be hit with the 4.9% rise ? but im only paying a tenner month so its not gonna break my bank either way 😉

And thanks for the info - helpful ! )

Re: RPI - 2024

Enlli — Mon, 19 Feb 2024 16:28:32 GMT

@Dino1968 8.8% rise. You forgot the added 3.9%

Says from 8th April so you should be OK

Re: RPI - 2024

Dino1968 — Mon, 19 Feb 2024 16:31:24 GMT

ah right yes see that now ) thanks 8,8 it is then.

Re: RPI - 2024

SB4092 — Tue, 20 Feb 2024 13:19:51 GMT

@Dave-O2 wrote:

If you joined from 8 February 2024 then you will not see a price increase until April 2025.

@Dave-O2 does this also apply to new SIM ONLY plans on an existing O2 account?

e.g. If I take out a second 12 month SIM ONLY plan for a family member today (using my existing O2 account), will the price increase this April, or next April (2025)?

Re: RPI - 2024

Dave-O2 — Tue, 20 Feb 2024 15:20:55 GMT

@SB4092 New connections from 8 February won't see any changes this year. You can find more on this HERE

Re: RPI - 2024

gmarkj — Tue, 20 Feb 2024 15:03:51 GMT

@SB4092 wrote:

@Dave-O2 wrote:

If you joined from 8 February 2024 then you will not see a price increase until April 2025.

@Dave-O2 does this also apply to new SIM ONLY plans on an existing O2 account?

e.g. If I take out a second 12 month SIM ONLY plan for a family member today (using my existing O2 account), will the price increase this April, or next April (2025)?

New contracts taken after 8th Feb will be increased from April 2025 @SB4092

Re: RPI - 2024

Rotary — Thu, 29 Feb 2024 11:09:18 GMT

Hi @Dave-O2 thanks for the post. Are you able to help me please with a 2024 price rise query after receiving your recent email?
I was moved to O2 from Virgin last year and pay £6pm (10GB + unlimited voice/txt). Digging into my account I see a £13 discount is applied. How can I tell what my new monthly price will be please? It's not clear how things will work out for ex-Virgin customers and I can't find any information on this.
I see another customer had the same worries and posted here but there's no explanation of their outcome.
https://community.o2.co.uk/t5/Pay-Monthly/Email-stating-price-increase-doesn-t-tell-me-what-the-next-bill/td-p/1696017
Thanks.

Re: RPI - 2024

Dave-O2 — Thu, 29 Feb 2024 12:05:55 GMT

Afternoon @Rotary

Thanks for your message 😊

I won't be able to give you an exact figure from here, however, you can use our useful calculator which can show you what your new monthly bill amount will be and how it’s worked out.

You can access this HERE

Promotional deals are always fully honored. If you have a discounted package you will have the increase applied to the eligible discounted price.

Re: RPI - 2024

Rotary — Thu, 29 Feb 2024 12:43:57 GMT

Thanks for the reply @Dave-O2
I'm still confused I'm afraid! I actually pay £6pm. I'm ok if the 8.8% increase is being applied to that.
But as I mentioned, digging around I can see a £13 discount is applied - from the Virgin moves? If that isn't in place from April I'll be in for a bit of a shock!?

The email contained the 'price calculator' link - but it's not spelt out what my situation actually is. I've tried the o2 app support option but that just gets me to the virtual assistant which can't help!

Please take a look at the link I previously posted where another customer in a similar situation had the same worries.

Re: RPI - 2024

jonsie — Thu, 29 Feb 2024 12:54:27 GMT

If your discount shows as a bolt on then the increase will be on the full airtime and the discount is then applied

Re: RPI - 2024

Dave-O2 — Thu, 29 Feb 2024 13:00:09 GMT

@Rotary your discount will remain active as long as this isn't due to expire and you don't make any changes to your current plan.

Re: RPI - 2024

Rotary — Thu, 29 Feb 2024 13:46:02 GMT

Sounds good @Dave-O2 but how do I check to see if this discount will expire?
I can't find anything in my account that explains the discount, I just see the "£13 discount" listed but can't expand to get further details. It came from the Virgin move, does that mean it's staying?

EDIT: This is shown at the bottom of my billing page:

Re: RPI - 2024

Rotary — Thu, 29 Feb 2024 13:17:52 GMT

Hi, Viewing the info in "View Bolt Ons" all it shows in there is a "free 5G bolt on", nothing else.

Re: RPI - 2024

Dave-O2 — Thu, 29 Feb 2024 17:19:29 GMT

@Rotary Generally this type of discount will not expire unless you make changes, however, so this can be confirmed please contact customer services

Re: RPI - 2024

pgn — Thu, 29 Feb 2024 19:53:20 GMT

Do take care, @Rotary - MyO2 app Vs MyO2 Web version show disparate views of your bolt-ons:

https://community.o2.co.uk/t5/My-O2/System-360-User-MyO2-quot-Your-Bolt-Ons-quot-view-differs/m-p/1694716/highlight/true#M24620