Mid-contract price increases on brand-new contract

[heavywater]

Hi all,

I believe there's a plan for Vodafone to increase prices by approximately 17% this April in line with other providers. I'm looking at an upgrade currently to Fibre 500 for £30.

If I placed an order for this now, the service could go live near the end of March. Would this mean that the cost of the contract would immediately jump to £35 days after I was connected, or is there a period for which new contracts are not eligible for a price increase? I had a look at various provider terms and conditions and the ofcom gudiance, but that specific case doesn't seem to be covered anywhere.

[heavywater]

Thanks, fairly sure you're right and I'll be waiting until April anyway as I don't want to risk it, but frustrating that many people still seem to be getting told that a price increase won't be applied this year.

[WelshPaul]

Take anything Vodafone say with a pinch of salt. The only thing Vodafone know is to tell the customer to wait 24 hours for a resolution to whatever it is they are asking.

[Cynric]

@WelshPaul You missed the other one, "it'll take about ten days for the line to condition". Which has been told to people on FTTP and to those already well into their cooling-off period.

[Jayach]

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@heavywater wrote:

Thanks, fairly sure you're right and I'll be waiting until April anyway as I don't want to risk it, 

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The problem with waiting, is the basic price may be higher then. (conversely it may be lower, but I doubt it)

Whenever you join, there will still be two Aprils in the time period.

[heavywater]

Just to confuse things more (not my photo, posted by PortBoy78 on HUKD):

[BangorTom]

Even worse than that , Sold a new upgrade (now cancelled) at 19.50, told would be 33.50 after 24 month expiry. Then received contract, very unclear with mistake in cpi+3.9 example calculation. Contract says standard cost is 33.50, further 11 discount applied, gives 22.50 . The 19.50 (not mentioned in contract) comes from a further 3 reduction (Together SIM). Spoke to shop and 191 many times  all sorts of views. Until yesterday was assured that fixed, no increase over 24 month period, even got that in writing from transcript. Still didnt believe due to press comment and unclear contract so 4 hour conv on 191 yesterday. Final conclusion was that ignore all previous (even written ) assurances,  Vodafone will not stand by them, increases will happen mid contract.

  ....... Now the worst part,  increase is applied to the 'standard cost' (33.50, not the 19.50). So my new bill  March would be £19.50. Would  go up in April (at example cpi  of 10.5) and 33.50  applying (10.5+3.9%) gives £38.32 . Take off the 11 and 3 discount gives £24.32. Thats a 24.7 % increase after 1 month. If inflation same in a year then new rate (just about mid way in contract ) could be £29.84 ,,+53% after 13 months of 23 month contract.

 This seem an underhand way of increasing bills hugely. I am assured by senior manager and Customer resolution last night that this is how it is being implemented. 24 month contract could be approx £170 dearer than previous assurances. Was offered £10 compensation, have probably wasted 12 hours on call and web chats.

Accordingly instead going ahead with upgrade starting March I have cancelled upgrade, and do not feel as positive towards Vodafone as I previously was.

 Thoughts anyone? I be interested to see what happens in April.

[heavywater]

I don't think anyone really knows for certain what's going on. They're either offering a grace period to everyone, offering it to people that receive a 'Switch and save' letter, or offering it to nobody, had multiple examples of all three. Safest bet is avoid a new contract until April either way I think, even if you had it in writing that the first price increase wasn't until 2024, I wouldn't be confident it wouldn't get applied anyway.

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@BangorTom wrote:

  ....... Now the worst part,  increase is applied to the 'standard cost' (33.50, not the 19.50). So my new bill  March would be £19.50. Would  go up in April (at example cpi  of 10.5) and 33.50  applying (10.5+3.9%) gives £38.32 . Take off the 11 and 3 discount gives £24.32. Thats a 24.7 % increase after 1 month. If inflation same in a year then new rate (just about mid way in contract ) could be £29.84 ,,+53% after 13 months of 23 month contract.

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This part is particularly bad, seeing as the text on the products page hints at the opposite; they just define your 'monthly price' and your 'monthly plan charge' differently (but don't tell you what either mean).

[Jayach]

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@BangorTom wrote:

  .Now the worst part,  increase is applied to the 'standard cost' (33.50, not the 19.50).  

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It has ben mentioned on here before, I believe it's on the price before the discount, others insisted it the price after the discount (i.e. the price currently paid).

I will be getting my first price rise in April. so will know then.

My first 2 years had a "no price rises whilst in contract clause" so despite being here a while, I've not experienced it yet.

[BangorTom]

Here was my contract :

Future charges: Each April your monthly plan charge will increase by the consumer prices index (CPI) rate
published by the Office for National Statistics in January plus an additional 3.9%. The monthly plan charge
is the amount payable before any discounts are applied and your price increase will be calculated based on
that figure.
Home Broadband and Phone Terms (vodafone.co.uk/terms-and-conditions),
Service Confirmation Letter (sent after your order is placed and target install date is confirmed)
Price Guide (vodafone.co.uk/priceguide),
Returns Policy (vodafone.co.uk/return-policy),
Acceptable Use Policy (vodafone.co.uk/aup)
Future charges example: if the CPI rate is 10.5%, your new charge would be:
Product Number Plan Name New Charge
(excluding discounts as per 'Your service' section)
Package 1 24 month Full Fibre 2 £35.14
You can see the contract says it is applied on the price before the discount, hence the signifacantly larger big nett rise.

You might also note  the example they give, cpi 10.5% +3.9 % applied to £33.50 does NOT come t £35.14. thats a rise of about 4.9%.
They acknowledged that was an error and should be ignored.  But how do we know which bits of contract are right and which are wrong given that Vodafone staff have many different understandings?

[Jayach]

Thanks for posting that @BangorTom, it's what I believed, but couldn't find just where I had read it.

In my case, it won't make much difference, as my discount is only £2.00. For those with a larger discount it will make a big difference.