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RPI Price Increase - April 2017

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17: Community Champion

Hi all,

I received this wonderful text message yesterday informing me that Vodafone will be increasing my price from 12th April.

"Hello. Just to let you know, from 12 April we'll be increasing your monthly plan by 3.2% - which is in line with the Retail Price Index (RPI) published in March 2017. This means that a monthly plan costing £37.00 will go up by £1.18 a month. This change reflects your terms and conditions - please go to www.vodafone.co.uk/rpi if you'd like to find out more."

I don't mind a price increase, I agreed to that as part of the T+C's, however, I don't agree with the amount that has been quoted.
I took out a 12 month SIM only plan in November of last year and the advisor quoted the following:

"The price plan you have chosen gives you Unlimited Minutes, Unlimited Texts and 20GB. The standard monthly cost for this is £22.20, which will show on your My Vodafone account online. "

The advisor was indeed correct, the figure of £22.20 is indeed what shows on my account, and is what I've been paying for the last 4 months.
With this in mind, the 3.2% increase to my account should be around £0.71, a bit of a difference from the £1.18 that the SMS message states. In fact, an increase of £1.18 would be just over 5% which, please correct me if I'm wrong, would leave me free to exit my contract under section 11b of the T+C's.

Vodafone, how do I proceed with this?

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14 REPLIES 14
17: Community Champion

I had exactly the same message for exactly the same plan.

 

Do we assume that the £1.18 will be discounted by the same 40% as the original value of £37?

Jeffkinn_Sig.png

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17: Community Champion

It always beats me why anyone wanting to increase what they charge you uses RPI (which includes housing costs), rather than CPI, which doesn't.  What housing costs do companies have?  If it's a benefit to you, of course, it's the other way round because people don't have housing costs, do they?

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17: Community Champion

Rent

Business Rates

Heat & Light

Property insurance

Office Cleaning

Maintenance

 

to name but a few

 

Jeffkinn_Sig.png

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17: Community Champion

True, but they're not (afaik) the elements that are excluded from CPI.

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17: Community Champion

Any suggestion or opinions of what I should do?

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17: Community Champion

Wait for the next bill and see what you're charged?   If you have a discounted tarriff and the discount shows as a separate item, I'd assume in the first instance that the increase would show on both elements and come out at the correct net figure.

 

If not (re-reading your initial post, I see that the price you were quoted is what appears on your account), then is £37 just an example?   In that case, it's simply badly worded.

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3: Seeker

I'm on the same plan and received the same message, and it's perfectly clear to me. If I was on the plan at its non-discounted price of £37, I'd be paying an additional £1.18. As I'm not, I won't be. I'll be paying an additional 3.2% of £22.20.

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4: Newbie

@DroneOn wrote:

I'm on the same plan and received the same message, and it's perfectly clear to me. If I was on the plan at its non-discounted price of £37, I'd be paying an additional £1.18. As I'm not, I won't be. I'll be paying an additional 3.2% of £22.20.


Did you see the link in the first post.

 

if you click through it says:

 

What if I have a discount?
RPI is applied to your monthly fee, before the discount is applied.

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Moderator

Hi All,

 

Please be aware that the Retail Price Index (RPI), is applied to your monthly fee, before your discount is applied. 

 

Therefore the texts you have received, will include your plan amount, before any discounts. 

 

You can find more information about this here.

 

Hope this helps 

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3: Seeker

Yes. So 3.2% is added to the non-discounted price of £37. Then the 40% discount comes off. Which works out exactly the same as adding 3.2% to £22.20.

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17: Community Champion

@Colleen wrote:

Hi All,

 

Please be aware that the Retail Price Index (RPI), is applied to your monthly fee, before your discount is applied. 

 

Therefore the texts you have received, will include your plan amount, before any discounts. 

 

You can find more information about this here.

 

Hope this helps 


@Colleen Please make this crystal clear. Will the new price of £38.18 all be subject to the 40% discount to net down to a new price of £22.91?

 

 

Jeffkinn_Sig.png

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17: Community Champion
@Colleen @DroneOn my bill will be increasing by £0.71 not £1.18 as the text suggests?
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Moderator

@jeffkinn That's absolutely right The RPI is added first and then the discount is applied to this new monthly amount.

 

@Nabs So yes this will be the same for you also. As you have a discount on your account, the price increase will actually only be of £0.71.

 

Sorry for the confusion. The texts messages are generated by our systems and refer to your plan, before any discounts are applied. 

 

If you have any further questions, please let us know

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16: Advanced member

I got the message too. I currently have a £32 plan with a 50% discount. The text reads on my £32 plan, the increase is £1.02 so I really only expect to pay an extra 51p which is all good.

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