@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