RPI increase confusion

[sdrahcir]

It's hard work.

I'm on 125MB and I've been told the price will rise by £7 a month. So I've contacted support and asked if they could reduce this. I was told yes, I could keep the existing price BUT I would need to sign up to an 18 month contract otherwise there was no way to avoid the rise.  I guess it's not too unreasonable, but things change a lot in 18 months.

However, the issue really is about this which was in the email:

"From April 2024, we are changing our approach so any price rise to your package is always made at the same time every year, and it’ll be linked to the Retail Price Index (RPI) rate of inflation plus an additional 3.9%, so the amount of any increase will be clearer, sooner. To do this, we need to change our terms and conditions. The key features of these new rules are:"

And in particular this:

"As this annual price increase is provided for in your terms, there is no right to cancel given for this price increase from April 2024."

Now I asked the customer service agent about this and that was applied during the contract or after the contract had expired. I was told:

a) there *might* be a price increase.
b) If there was, I could call and see what they could do to reduce the price increase.

At this point, I questioned it, got told the same thing, explained what the email said and after a few minutes thanked the customer service agent stating the information she gave I believed was not correct but thanked her for her time.

From reading further, it appears that regardless of contract, the price will increase during it and I have no rights to negotiate or cancel based on this.

Which means that the information provided by the customer service agent was incorrect surely?

[Chris_W1]

Hi sdrahcir, thanks for the message and sorry to hear that you have been affected by the price increase. 

When there is a price increase we would give the option to cancel without any early disconnection fees. 

At the moment this is the only planned price increase for the cable services. 

You would be able to get a new deal with the customer relations team on 0345 454 1111 if you choose to do so. 

Kind regards, Chris. 

[sdrahcir]

I'm very confused right now.

So to be clear, I called about the price increase and was told basically I could have my existing contract without the price increase but only IF I committed to a NEW 18 month contract. I will refer to this as the NEW contract to avoid confusion.

That means, from April 2024, I would have in my NEW contact the fact I agree to "RPI rate of inflation plus an additional 3.9%" which means my monthly payment would INCREASE and I have no rights to re-negotiate or cancel as I can right now.

When I spoke to the customer service agent about the RPI + 3.9% I was told that during my NEW contract that there "might be a price increase" and "If there was, I could call and see what they could do to reduce the price increase."

 And now in the reply above, it has been stated:

"When there is a price increase we would give the option to cancel without any early disconnection fees. "

Now, as far as I'm concerned, RPI + 3.9% is a price increase. A price increase that I agree to and that in your own T&Cs state I cannot cancel. And yet you're telling me I can still cancel during this period without disconnection fees?!

[Chris_W1]

All prices are subject to any price increase and this is confirmed in the term and conditions. 

No package changes are exempt from price increases and this affects all customers. 

You can change the contract mid term as long as you don't remove a service then this may be subject to an early disconnection fee. 

We usually give the option to cancel with out EDF during the price increase. 

Chris. 

[Andrew-G]

---

@Chris_W1 wrote:

We usually give the option to cancel with out EDF during the price increase. 

---

Errrm...what about the changes proposed to terms that will remove that right?  Or have I got it wrong, and although there will be a price rise method in the contract, it's going to be voluntary as to whether customer take it?

The other thing about the baked in price rise is that it is on the undiscounted price, so anybody on a discount will see higher proportionate increase.  

[sdrahcir]

Glad it's not just me Andrew-G!

In the email (and in the T&Cs but this extract is from the email) it clearly states:

"As this annual price increase is provided for in your terms, there is no right to cancel given for this price increase from April 2024."

so that means the RPI + 3.4% is classed as a price increase and yet Chris_W1 states:

"We usually give the option to cancel with out EDF during the price increase."

Which gives the impression it can be cancelled without penalty (eg EDF) which is completely contrary to the T&Cs!

[Lee_R]

Hi @sdrahcir thanks for getting back to us.

I am sorry for any confusion on my colleague's behalf. You and Andrew_G are correct. 2023 is the last year, unless stated otherwise in the future, that there will be a right to cancel period without termination fees, because of any price increase, we have.

Kind regards

Lee_R

[sdrahcir]

I appreciate the reply, but really this isn't good enough. I called customer services and I was told this hence the original post. If I had taken the agents word and agreed to an 18 month contract, when the RPI increase happened next year and I try and negotiate/cancel, I'd have no chance and no way to prove what I was told.

How many customers has that agent spoken to and that customer agreed to a new 18 month contract believing they can in effect cancel their contract because of the RPI+3.4% increase? And that's just ONE agent.

If VMs own agents don't understand it, what chance has the customers got?

[mitch84]

This is complete BS from VM with regards to the new t&c's from 2024.

I can't wait to move away from VM in the near future.

[kapitt]

So if the RPI goes down, does that mean our bills will follow? Or is it just going up? If Virgin is going to use RPI as the reason, surely it follows that if it goes down, so will the price?

Regards,

Kevin