new tarriffs due to so called rpi inflation

[Anonymous]

I have today received the email telling me that my charges will increase on my contract due to the rpi index going up,  I am confused as to why O2 is doing this the rpi has been higher than this and they did not put up the prices WHY NOW??  no-one can give me an answer

I took out my contact in December 2012 when the rpi was 3.2%.  In January 2013 it was 3.3% -Feb 3.2% - Mar 3.3% - Apr 2.9% - May 3.1% - June 3.3% -July 3.1% - Aug 3.3% Sept 3.2% - Oct 2.6% - Nov 2.6% - Dec 2.7%

Can someone explain to me why when the index dropped from Sept to Oct by a large amount I had no messages saying my price had gone down. but it jumps by 0.1% for one month, still lower than it had been the previous two years in 2011 averaged 5% and 2012 3% PLEASE CAN SOMEONE EXPLAIN THIS TO ME, I FEEL LIKE WE ARE ALL BEING PLAYED!!!!!

[adamtemp64]

It is done once a year so the relevant rate is used.
 
Please take some time to search the forum there must be 50 posts now discussing this and read your relevant t&C that will explain it.

[Anonymous]

Its a complete rip off - the sooner my O2 contract is up the sooner I can change to a better provider. Good riddance.

[Anonymous]

I'm amazed that people seem to think that O2 are the only company to do this!  I think it's wrong and a contract should be fixed for the duration but they aren't and, because of the Ofcom loophole, I'm sure that the other providers will go back to putting up tariff charges before long.

[adamtemp64]

it is not a loophole just legal

[Anonymous]

Aggielil

To answer your query you need to understand inflation figures. In September prices were 3.2% HIGHER than the previous September. In October prices were 2.6% HIGHER than the previous October.

Prices DIDN'T go down in October. The rate of increase slowed.

O2 adjust their prices annually and have used the rpi most recently announced by the ONS.

Your post suggests inflation rises by the monthly amount shown every month. If that were the case o2 and all other companies would be looking at price increases circa 40% per annum.

[davethorp]

It's a loophole

[Anonymous]

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@adamtemp64 wrote:
it is not a loophole just legal

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I'm not disputing it's legal, I just view it as a loophole as Ofcom were supposed to be tightening up and protecting the consumer but didn't do so at all.

[Anonymous]

May be legal but highly immoral

[davethorp]

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@Anonymous wrote:
May be legal but highly immoral

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That too