One contract. Two direct debits. Two separate price rises.

[cammyloon]

Hi all.  In case you're in a similar position to me, and haven't yet received full notification.

I'm currently on an Ultimate Volt bundle.  It's a single contract but, the way Virgin Retentions renewed it last year, the price I now pay is split between two direct debits - one to Virgin Media, the other to O2.

Last week, I received notification from Virgin of a hefty price rise.  All the email provided was the extra I'm due to pay.  No clarification as to how it was calculated; nor of whether or not that price increase covered my contract in full.

It now turns out that price increase only covers the part of my contract payable to Virgin.  O2 has separately notified me of an additional price rise in my direct debit to them.  

I suggest anyone in a similar position who's currently intending to re-negotiate their package or cancel should factor in the likelihood that they too might face an additional price increase from O2 on top of the price increase imposed by Virgin.

[Tom_W1]

Hi @cammyloon thanks for your post here, although we're sorry to hear of your concerns raised here.

We always balance our prices with the need to continue investing in our network, products and services.

1. Like many businesses, we’re experiencing rising costs due to inflation. We are not immune to rising costs, primarily due to wider economic changes from rising inflation.

2. We’re seeing growing demand for data – with usage growing by more than 10% each year. Last year, we invested more than £2bn in our networks, which contributed to average broadband speeds increasing more than 40%, while helping to make sure our customers stayed connected and were able to keep using our services more and more.
Many thanks

[cammyloon]

Hi @Tom_W1 - thanks for your response.

Your reply explains why prices need to go up, and I accept that.  However, my concerns are much deeper.

1. Why are price increases so high?  In my case, I estimate I'll be charged over 40% more from April.  That's four times the rate of inflation and can't be justified by a need to invest.

2. How have these increases been calculated?  Virgin's approach is so opaque.  Has the company made a mistake in charging me so much?  Why wasn't I warned that the price rise Virgin quoted for only for part of my contract, and that O2 would be charging more on top?

3. How can I renew with Virgin with confidence? At least this year, I have the right to cancel.  But what if I renew my contract and Virgin imposes another 40% price hike next year? How can I be sure that this won't happen?

Thanks

[Tom_W1]

Hi @cammyloon thanks for your reply.

Your individual price rise will be specific to the service you have. Overall, the average price rise is 13.8%. Some price changes will be lower and some customers will be excluded completely.

In terms of going forwards, a customer’s bill will change from April each year in line with the RPI rate announced in the preceding February +3.9%.  
I hope this helps.

Many thanks

[newapollo]

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@cammyloon wrote:

Hi @Tom_W1 - thanks for your response.

Your reply explains why prices need to go up, and I accept that.  However, my concerns are much deeper.

1. Why are price increases so high?  In my case, I estimate I'll be charged over 40% more from April.  That's four times the rate of inflation and can't be justified by a need to invest.

2. How have these increases been calculated?  Virgin's approach is so opaque.  Has the company made a mistake in charging me so much? 

The increases are calculated on the full package price, not the discounted pricing.

 Why wasn't I warned that the price rise Virgin quoted for only for part of my contract, and that O2 would be charging more on top?

All of the Volt packages show, " Your O2 Price £xx a month*. 18 month contract." 

This is explained on the ordering page, also on your contract, and the VM package pages, and if done over the phone by the VM agent when ordering and agreeing to the package 

 *O2 sim: Each year your O2 mobile Airtime Plan will be increased by the Retail Price Index (RPI) rate of inflation announced in February plus 3.9%. If RPI is negative, we’ll only apply the 3.9%. You’ll see this increase on your April 2023 O2 bill onwards. Since this increase is provided for within your agreement, you will not be able to leave without paying an early termination fee as a result. See O2 Prices.

3. How can I renew with Virgin with confidence? At least this year, I have the right to cancel.  But what if I renew my contract and Virgin imposes another 40% price hike next year? How can I be sure that this won't happen?

You can't be sure what actual amount the price increase will be next year. This doesn't just apply to VM, but to all the other companies that are now advising of either CPI + 3.9% or RPI + 3.9%  increases - nobody knows what the inflation rate will be next year, although current estimates are 2%.

Thanks

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