New customer- will the price increase immediately apply?

[Tomnelson]

Hi there,

I am a new customer looking at taking out a package (BiggerBundle) before the offer expires tonight, as it seems like not a bad deal. 

I have read that hefty price rises are being introduced from May 1st.

As a new customer, will this price increase apply to me, even though i will have only bene potentially set up for a couple of weeks? there doesnt seem to be any mention of this when going through the website with the setup etc.  

[Andrew-G · Accepted solution]

All contracts agreed in the past few weeks should not be hit by this year's price rise.  But you're aware that unless you have got evidence that this was a fixed price deal (as opposed to a fixed discount), then when prices go up in April 2024 you'll be looking at a whacking price rise with no option to cancel or renegotiate?

VM's marketing is careful to obscure the facts here.  A look at the online offers shows the Bigger Bundle clearly shown at £49 a month for 18 months.  Looks like a fixed price, doesn't it?  But click on "View this bundle", scroll down and you'll see in in the abbreviated legal stuff "Prices may change during your contract".  The new terms will include an RPI + 3.9% clause for each April, and that's against the undiscounted rate of £88.  If RPI + 3.9% is 10% next February (which is a decent ballpark estimate) then you'll be hit with an £8.80 a month increase, so your monthly price will go up by 18%.  And as you've agreed to those terms, you won't have the option to cancel or renegotiate.  It's difficult to find online clarification of this almost as though VM are ashamed of what they're doing, or simply wish to avoid admitting this, but the price increase emails for customers this year have been absolutely clear as this post shows.

[Tomnelson]

Thanks for your helpful reply.

Surely this will be an issue for everyone in April 2024 though? Since most people are on some kind of discount or other, they'll be subject to the same big increase (RPI + 3.9% on the full price of the package minus any discounts)?

[Andrew-G]

Well, it's an issue for anybody with a fixed discount come next April, for the few who specifically agree a fixed price deal and make sure they get and keep the evidence of that being discussed they won't be affected - although they might need to complain and produce the evidence as there's frequently a difference to what is verbally agreed, and what VM actually put on their systems.  My point was primarily to you personally, so you're clear that next April you'll get hit with a 15-22% increase in your monthly bill with no option but to accept it for the remaining 5-6 months of your minimum term.  If you don't mind that's your choice, if you do then you've got 14 day cooling off rights to cancel - and they might even agree a fixed price to avoid you leaving.

Not all suppliers are doing this: Talktalk, BT, Vodafone certainly are and should be avoided, but Sky don't have mandated price rises in their contract so you can renegotiate or cancel if they change them, Zen Internet have fixed price 18 month offers, and smaller ISPs still offer fixed price 12 month deals.

[David_Bn]

Thanks for your post on our Community Forums and a very warm welcome to you!

As per the advice offered to you from @Andrew-G, any 2023 price rise would have already been factored into the price you have recently agreed for the services you've taken out with us.

Like our competitors, we have an annual price rise that allows any customers who are unhappy with the rise to leave without penalty during a specific window of time that's offered to them.

Kindest regards,

David_Bn