CPI linked bill increase

[stuart28]

Just received my annual bill increase notification from Vodafone, with the explanation of CPI + 3.9%, which is expected as part of the T&C's. However, considering the incredible volatility in the CPI rates over the past 12 months, it seems unfair and not in customer best interests that Vodafone are about to make a huge windfall on bumping our monthly bills by almost 10% (9.3%), forever, based purely on the abnormally high CPI rates of the last quarter. Given the main driver for the current high CPI is energy (gas), fuel, transport and clothing, I fail to see how these costs are impacting Vodafone's ability to "continually improve the service to customers and invest in the network". Will Vodafone be reducing my bill once these high fuel prices subside? 

If not, I think I might buy shares in Vodafone and get at least some kickback from the huge profits they'll no doubt be posting this year 

[hrym]

I wouldn't disagree.   Of course businesses have increased costs which they have to pass on, but I do think these need to be proportional and justified.   The CPI+ formula replaces RPI, which included housing costs, and I could never quite see how domestic housing affected a business (Vodafone weren't alone in using this measure).

You can mitigate the cost by renewing your contract every time it expires.   The base price for the tarriff you're on will probably not have changed, so you can go back to that and may even get slightly better benefits.  Also watch our for special offers, where you might be able to get (say) the amount of data you need at a lower price point.   Do the switch just after the price increase and you'll only pay the increase in the second year, at which point, repeat.

[simax]

I’m 47 and I’ve had a pay monthly plan since I turned 18 (analogue brick phone on Cellnet lol) and I’ll be honest, I think my current contract will be my last. In future I think I will buy my devices outright and use PAYG.

At least then you can chop and change to the best deals about whenever you want with no credit checks or termination fees - plus no annual CPI + 3.9% nonsense.

Plus, the bundles on PAYG are tens of times better than 30-day Pay Monthly sim only plans - I mean - what’s that all about?!? Lol

[chistery]

Networks show no loyalty. Customers need to be more aware of other deals and be prepared to PAC out at the end of their contract or do the PAC out/in shuffle, and experience a few days of faffing about for saving quite a bit of money.