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UK ISP Plusnet Joins BT and EE in CPI + 3.9% Price Hike Change UPDATE

Wednesday, October 7th, 2020 (7:05 am) - Score 4,056
plusnet uk

In a predictable move UK broadband ISP Plusnet has today gone the same way as their parent (BT) by announcing their intention to hike prices, which will see future increases on contracts taken on or after October 7th 2020 being calculated by the Consumer Price Index (CPI) rate of inflation plus an additional 3.9%.

Prior to this change Plusnet’s official policy was to merely increase their prices in line with the CPI rate, as published by the Office for National Statistics in April this year (1.5%). The addition of an extra 3.9% on top of CPI is thus a significant change, albeit one that seemed inevitable after BT and EE announced the same approach last month (here).

NOTE: These changes will also impact fixed price contract customers whose minimum term expires on or after 2nd December 2020.

Naturally if you’ve signed up to one of their fixed price contracts and you’re still within your minimum term then this won’t impact you until after that term comes to an end. Otherwise the ISP states that their broadband, line rental, call plans and some call charges will go up in price in line with CPI plus 3.9% on or after 1st June 2021 and then on or after 1st March every year from March 2022.

For any customer who joins or takes a new contract on or after 7th October 2020, early termination charges will also increase in line with CPI plus 3.9%.

Plusnet’s CPI Guide Statement

How will the CPI plus 3.9% price increases work?

On or after 1st June 2021 we’ll take the CPI percentage rate published by the Office for National Statistics in April of that year and add an extra 3.9% to the rate. We’ll increase the monthly price of broadband, line rental, call plans and call charges by the total percentage figure.

On or after 1st March every year from March 2022, we’ll take the CPI percentage rate published by the Office for National Statistics in January of that year and add an extra 3.9% to the rate. We’ll increase the monthly price of broadband, line rental, call plans and call charges by the total percentage figure.

If the published CPI percentage rate is negative, we’ll only increase your prices by 3.9% in the relevant year.

The calculated increase will be rounded up to the nearest whole pence.

Where you buy more than one service from us and each is subject to the price increase, the amount of the increase is calculated on each service separately. If you receive a discount on your price, the increase will be applied to this amount.

Existing customers who get hit by this next year could try haggling for a better price (Retentions – Tips for Cutting Your Broadband Bill) or, since many will be out of contract anyway (assuming it’s a fixed price plan), then you could consider switching away to a different provider.

Prices tend to rise because ISPs are frequently adding all sorts of new services, developing new systems and consumers are also gobbling significantly more data every year. Suffice to say that service improvements and rising demand cost money, which means that ultimately customers will end up paying more and all of the big ISPs seem to follow the same sort of trend.

Providers are also under pressure to adopt all sorts of new rules, such as having to cater for the hugely expensive new system of automatic compensation (here). Nevertheless BT, EE and Plusnet’s decision to adopt this change, coming so soon after they introduced a policy of CPI-only increases, remains a controversial move. The fact that it comes during the COVID-19 crisis, and before a mass of expected job losses, certainly doesn’t help.

UPDATE 2:12pm

Just to add, but this also applies to John Lewis Broadband, which is supplied by Plusnet under a managed service contract.

Leave a Comment
20 Responses
  1. NE555 says:

    “If the published CPI percentage rate is negative, we’ll only increase your prices by 3.9% in the relevant year.”

    “Only” ?! In this circumstance they are applying an even *higher* premium to CPI!

    Some companies like Zen guarantee no price rises either within your contract term or at the end of it. Hopefully people will vote with their feet.

    1. Iain says:

      Indeed. How ‘nice’ of them to increase your price by *even more* than CPI plus 3.9%.

  2. Sunil Sood says:

    I can’t see annual CPI + 3.9% price increases as being practical for more than a few of years.

    The BT group brands will end up losing large numbers of retail customers as a result unless other firms also adopt similar pricing policies (which they hopefully won’t do)

  3. Jamie says:

    Plusnet have already lost me as a customer! Back in 2019 they promised they would backdate the extra £3 a month they were charging because of their botched system update as soon as they had resolved it, I receive an email last week saying the problem was fixed but they won’t backdate any extra charges! Thieving little…..

    1. Jamie says:

      Just had my monthly bill through from Plusnet, they’ve charged me £251 after mistakingly adding line rental saver on to it. Absolute joke of a company!

  4. Craig says:

    I doubt I’ll be renewing with PlusNet’s parent company BT, reliable connection but extremely expensive, I’ll be looking probably TalkTalk.

  5. PN says:

    Plusnet are FINISHED! They going down and dead in the water!

  6. Buggerlugz says:

    Plusnet has a history of doing this type of thing. Second to Virgin they’re in my list of “top ISP’s to shaft customers any way they can regardless of how questionable it is.”

  7. James Matthews says:

    To be fair I think they are a still a decent and cheaper than BT alternative – At least at the end of my 18 month contract they’d asked if I wanted to extend it (to keep it at the same amount) rather than force a higher monthly payment like so many other companies do so I respect them for that.

  8. cdh1981 says:

    Doing everyone proud.

    You can cut out the warm fuzzy Yorkshire centric advertising now.

  9. plusforfreeyesplease says:

    There are still many customers getting free broadband and line rental 18 months later after all the billing system went wrong.
    I know of 2 people who have had no bills in 18 months now.
    Clearly proves how much a terrible company they are giving away from internet and phone line looool.

  10. Gary says:

    It’s only because this is so clearly stated that it’s creating an issue, how many of us know how much the likes of tesco and asda have raised prices year on year?

    Recurring subscription services. Like broadband sky TV etc etc are just easy to spot the changes.

  11. Spurple says:

    The meaning of a fixed term contract is being destroyed and I don’t understand why this practice is allowed to stand.

    Any price rises during the fixed term must give the customer the right to terminate the contract without penalty.

    Stop making excuses for these ISPs. When they upgrade their core infrastructure, it has no impact on the service I signed up for, unless they never had the capacity to meet their side of the deal. They should adjust their prices for new customers and contracts to reflect the higher costs of delivering that new contract and raise my price if necessary when it is time to renew my contract.

  12. j karna says:

    I left rip-off Plusnet in July 2020 and joined Community fibre- 150Mps symmetrical for £20 per month for 24 months. PLusnet has no plans for FTTP.

  13. Ray says:

    Why do mugs continue to touch BT,EE,Plusnet and Virgin Media using 3 mobile for home broadband £12 and two mobile phone with unlimited data for £5 a month.

    People need to vote with their feet move to o2,3 or vodafone….

    1. Craig says:

      I tried this and I was getting awful speeds, so bad I had to leave Three early, not everyone can get decent signal from Three. I also tried Voxi and had similar speeds, I went back to BT, expensive but reliable.

    2. Gary says:

      Same as Craig , I’m ‘Mug’ as you put it for using the fastest most reliable provider available at my house.

      I did do as you say tho, i voted with my feet and left a more expensive slower and data capped )2 service, weird that .

  14. baaaa says:

    BT and its group being crap and expensive AGAIN? Who would of ever thought that?

  15. Winston Smith says:

    The cartel still see themselves as a monopoly headed by BT.If it was down to BT we would all still be on party phone lines. Their continued monoploy over fibre broadband through Open Reach is a classic example of their incompetence and inefficiency.Their customer service is appalling (with BT you probably won’t get through, if you do it will probably be someone in India with heavily accented English) When your contract expires move away from BT/PlusNet/EE (and, when they have seperated it off in an attempt to make it look independent, Open Reach).They have no interest in the consumer other than how to maximise and monetize. Another classic underhand example is charging customers to keep their email address. Everything they do is in the small print, designed to trick you. CPI + 3.9% is highly inflationary.If you’ve got any sense leave as soon as you can.

  16. PBH says:

    Doesn’t this general same level of pricing fall within the anti competitive and cartel Regulations? If not, why not? Why isn’t the Regulator intervening in this inflationary arrangement?

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