Broadband ISP Plusnet to Finally Adopt Automatic Compensation

Some consumers may be disappointed to learn that UK home broadband ISP Plusnet remains the only one of the major internet providers to have NOT joined Ofcom’s automatic compensation system, which is despite originally pledging to do so. The system first went live three long years ago. But this is, finally, about to change.

The voluntary system, which officially launched on 1st April 2019 after several years of development (full summary here), is designed to compensate consumers by £8.40 per day for delayed repairs following a loss of broadband (assuming it isn’t fixed within 2 working days). Missed appointments can also attract compensation of £26.24 and a delay to the start of a new service would be £5.25 per day.

Back in 2020 we reported that three major UK ISPs – including Plusnet, Vodafone and EE – had dragged their feet over joining the scheme. The good news is that EE finally signed-up in May 2021, while Vodafone followed in November 2021, although the latter only did so for those on Openreach’s network (i.e. auto compensation doesn’t yet cover their CityFibre products).

Sadly, Plusnet has yet to follow suit, which is despite the ISP pledging in 2019 to join the scheme “as soon as possible“, and that was followed in 2020 by a commitment to “introduce it for customers in 2021” (here). The fact that Plusnet are part of the BT Group, which also owns EE, makes this particularly awkward (they’ve both now joined). We’re also long past the disruption from COVID-19 being considered an acceptable excuse.

But the good news is that Plusnet has told ISPreview.co.uk that they’re nearly ready to join, and it’ll happen next month.

A Plusnet spokesperson told ISPreview.co.uk:

“We always aim to provide the best customer service for our customers, and will be introducing Ofcom’s automatic compensation scheme for our customers in May 2022.”

However, in fairness, Plusnet do say that they already provide customers impacted by delayed provision or delayed repair, the equivalent credit to the value of the automatic compensation scheme. The ISP was also keen to ensure that they integrated the new system seamlessly before going live, hence the delay.

As for why more ISPs don’t join – the high cost and technical requirements (new systems needed etc.) of supporting such a scheme often discourages them, particularly smaller providers. Such costs will frequently also end up being passed on to consumers via price rises, so there’s no such thing as a free lunch.

One other problem is that the scheme only really works properly if wholesale and infrastructure providers adopt it too, but the newer AltNets haven’t shown much interest in taking on such a burden.