Another major mobile and broadband company confirmed a £50 bill increase this spring
CUSTOMERS at another major mobile and broadband company Their bills could increase by around £50 a year.
Virgin Media O2 has told its customers that bills will increase from April 1.
It comes after BT, EE and Three confirmed to The Sun that they will impose bills of up to 7.9%.
The company uses January's inflation index plus 3.9% to determine mid-contract price increases.
RPI is an inflation measure that tracks the cost of a fixed basket of goods over time, to see how prices have fallen or risen.
And with January's consumer price index at 4.9%, that means millions will see their bills rise by 8.8%.
Virgin customers will see their bills increase by an average of £4.16 per month, or £49.92 per year.
For example, a Big Bundle customer currently paying £31.99 per month will see their new bill rise to £34.81 – an increase of £2.82 per month, or less than 10p per day.
Meanwhile, O2 customers will see their bills increase, but the price increase will only apply to the airtime portion of your bill.
You pay this for minutes, text messages and data.
The increase will not be applied to device subscriptions (what you pay for your device).
O2 said this means the average price increase will be 5%.
But customers whose plans started before March 25, 2021 will see prices increase due to the RPI alone.
For example, an iPhone 15 on an airtime plan with 25BG of data currently costs £50.99 per month.
The price increase would only apply to the £25 airtime element, so a customer on this package would see their bill increase by £2.20 per month.
Telecom giants use a loophole in the contracts that allows them to increase prices annually.
The exact amount you pay will depend on how much your bill is now, but for some the increases could be as much as £30.60 per year more on bills.
If you are on a social broadband and mobile tariff, you will not see an increase in your bills as Virgin Media O2 has frozen these rates.
Social tariffs are broadband and mobile phone packages available to people with certain benefits
A Virgin Media O2 spokesperson said: “We will be writing directly to all affected customers to explain when, why and how any price changes may come into effect.”
Alex Tofts, a broadband expert at Broadband Genie, said the latest price increase is a “sting” for customers.
He added: “This year the country is poised for another sharp increase on the RPI figure, although as inflation eases the increase is expected to be less dramatic.
“The kick in the teeth for Virgin customers is that even if they are halfway through their contract, they have no choice but to swallow the extra costs as they could face a hefty exit fee upon departure.”
Ofcom is currently investigating inflation-related price increases during the contract, but has yet to publish a final decision on its proposals to ban the practice.
A survey by Which? found that 78% of consumers believe that mid-contract price increases are always unfair.
How much will my bill increase by?
Your internet provider or mobile network will contact you to let you know how much your bills will increase in April.
There's also an easy way to find out how much you still have to pay.
Just find out what percentage of your current monthly bill will increase. You can use an online percentage calculator to calculate this.
Then add these two figures together to get your new monthly amount.
To calculate your annual costs, multiply that total by 12.
If you are not happy with the increase, you can try to negotiate a cheaper deal
You may be able to leave without paying any compensation, even if your contract is halfway through. So it's worth checking this out.
If you think your bills are too high and you want to pay less, the first thing you should do is find out what the cheapest deal on the market is.
You can use this rate as a negotiating tool to get a better offer from your provider.
Contact your provider to see if they can match this rate. If not, you might want to switch.
If you are halfway through your contract and want to leave, please note that you may be charged an exit fee. So contact your provider for any costs.
Additionally, these prices can be more difficult to negotiate as they come from all providers most years.
For more ways to reduce your phone bill, we have eight tips to reduce costs.
Do you have a money problem that needs to be solved? Get in touch by emailing money@the-sun.co.uk.
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