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RPI - 2024

Dave-O2
Community Manager
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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 ↘️

 

Kollektif (1).gif

 

What’s happening?

More info
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?

More info

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?

More info
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?

More info
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?

More info
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?

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

Kollektif (2).gif

 

Which customers will have the RPI increase applied to them?

More info
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?

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

Does this affect other services like bolt ons?

More info
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

 

 

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Message 1 of 40
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39 REPLIES 39

Rotary
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I managed to contact O2 via Twitter(DM) - they confirmed the increase is only on my current monthly bill (£6) and my discount continues since my switch from Virgin. Wish they had just sent the revised monthly figures to save any confusion.

Thanks for the help everyone.

Message 21 of 40
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jonsie
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Jaxs69
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Why do you use RPI and not CPI like all the other mobile & broadband providers as you are clearly charging more than them so not very competitive and network not as good as some other providers either?

Message 23 of 40
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Enlli
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Not us....we are all customers here.

Don't like the O2 network and their commercial decisions, there is plenty to choose from out there.

This is not O2 and we are all customers here similar to yourself and cannot answer account type queries.
Message 24 of 40
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Jaxs69
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What are you on about?

Don’t appreciate your rude reply thank you

Message 25 of 40
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madasaf1sh
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@Jaxs69 

 

Cant see how the reply is rude....

 

Sorry but its true, no one on this community can tell you why o2 use RPI over CPI, as that is a commercial decision by VMo2 

 

Plenty of choice out there for networks that dont do price rises, you are welcome to pay up and leave, details on how to cancel here Guide: Cancelling Your Contract 

- Xperia 1V - o2 and Spusu
- Pixel 8 Pro - o2 and Vodafone UK
Message 26 of 40
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Jaxs69
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I was asking the question from the person who originally posted the information about the RPI who does work for O2. I have asked of several people who do work for O2 and nobody so far can answer me. They claim they are ‘competitive’ but not really when they increase their prices by more than other providers.

I know exactly what I can do if I don’t like it and don’t appreciate people making those unhelpful comments as they are not necessary. If you can’t answer the question I am asking don’t say anything at all.

Just as the other person you are posting for the sake of posting, not because you are trying to be helpful

Message 27 of 40
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Oxonian
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I think the problem is @Jaxs69 that you did not make it clear to whom your question was directed. 

 

If you are asking the question of someone in particular, you need to tag them, just like I have tagged you in this message. If a post is not tagged, any member of this customer to customer forum might well answer it. 👍   

Message 28 of 40
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madasaf1sh
Level 76: Forum Legend
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No one is going to tell you, not even the community manager...  


Don't think you understand the fact it is a BUSINESS DECISION BY VMO2 and they have to explain it to no one, including someone who is posting on a customer to customer forum..

 

Don't like it jog on, and its a public forum so anyone can post and reply... if you understand how forums work....

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Message 29 of 40
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sfriziona
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Great info, thank you.

Can you also confirm that upgrading an existing contract won't trigger the RPI increase this April?

 

Message 30 of 40
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