Broadband and Phone Price Hikes for UK Shell Energy ISP Users

Most of Shell Energy’s broadband and phone customers in the UK have been informed that the ISP will hike their prices by an average of 6.1% a month from 1st September 2022. But those who joined or renewed on or after 9th January 2022 will escape the hike, which is at least mercifully below the current rate of CPI inflation (9.4%).

However, it’s worth noting that some 80,000 former customers of the Post Office’s telecoms division (acquired by Shell Energy in early 2021 – here), specifically those who are now out of contract, will actually benefit from a price decrease of up to 11% as the ISP seeks to align the pricing of their packages.

In addition, we should add that the latest price rise announcement actually follows on from Shell’s decision earlier this year to “postpone” the introduction of their annual price hikes (here), but clearly that didn’t last very long. The operator had previously intended to introduce their price increases on 1st April 2022 (based on the Jan 2022 CPI rate of 5.4% and an additional 3% [8.4%]).

According to MSE, Shell Energy customers who joined or renewed before 4th October 2021 will see their bills rise by £2 a month, while those who did the same between 4th October 2021 and 8th January 2022 will see a rise of 6.1% a month. The cost of calling UK landlines and mobiles will also rise to 19.10p a minute, and many of Shell’s other calling features are also due to be hiked.

Some customers may be able to leave penalty-free as a result of the hikes (Shell’s notification letter will tell you if this is the case), but others won’t and in that case you could always try haggling for a lower price (Retentions – Tips for Cutting Your Broadband Bill), although your mileage may vary.

Finally, it’s worth noting that Shell’s decision to introduce their annual price hikes at a later date than originally planned has not changed the fact that next year’s hikes are still due to go ahead in April. As per Shell’s website: “Your monthly charges may increase each year from 2023 on or after 1 April by the Consumer Price Index (CPI) rate of inflation plus up to 3%. For example, if you’re paying £20 per month, and the January CPI figure is 2%, we may apply an increase of up to 5%. At 5%, your monthly price would increase to £21 after 1 April.” Shell’s example is of course misleading, since the January 2023 CPI rate is still forecast to be well above 2%.