Tariff Increase

[Anonymous]

I'm just curious as to how O2 can increase a tariff rate in the middle of a contract term. My understanding of contracts is if i sign up to a tariff i expect to pay the agreed rate per month NOT what O2 think they should charge me each month. As I am about to end my contract what assurances can i get that my next contract will not have a variable rate again.

A great way to lose customers as I have no intention of renewing next month if O2 cannot guarantee me the same monthly rate for the WHOLE contract duration.

[MI5 · Accepted solution]

Many threads on this if you use the search function, but, in a nutshell, your tariff is not a fixed price. The contract states that one increase per year in line with inflation is allowable. This is the first time O2 have ever done it mid tern (unlike other networks) but it is perfectly acceptable within the T&C's.

[jonsie]

Discussed at great length in one of many threads here:

http://community.o2.co.uk/t5/Pay-Monthly-and-Pay-Go/O2-contract-customers-face-3-2-price-hike-from-F...

[Anonymous]

Hi auroralabs.

In your contract you'll see it tells you O2 can increase your tariff at a maximum of what the RPI (retail price index) is in the month of the year they announce the raise, and as long as they give you more than 30 days notice.

O2 announced the raise in December, the RPI at that point was 3.2% and thats what the increase is. O2 said they'd do it from 28 Feb - so that was more than 30 days notice.

It's the first time O2 done it in many years. Orange, T-Mobile etc have all done the same in the past, so its not like O2 are the only company ever to do it.

Will there be further raises in future years? O2 can't rule it out, but that doesn't mean its definately going to happen.

[perksie]

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@Anonymous wrote:

A great way to lose customers as I have no intention of renewing next month if O2 cannot guarantee me the same monthly rate for the WHOLE contract duration.

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No company will give you this guarantee, O2 were the only UK company never to have done this before, so who will you choose?

[adamtemp64]

If you want to read what ofcom is doing now to resolve this have a read here http://stakeholders.ofcom.org.uk/binaries/consultations/gc9/summary/condoc.pdf

[Anonymous]

I think you will find the O2 increase was announced later than the other providers who had increased thier prices a few months ago.

We could have been paying increased prices for a few months if O2 had slid theirs in at the same time.

I took a new contract out last month with the knowledge it was going up as we were told in Decmber when it would be implimented