I just sent the below message to the WatchDog and You & Yours program teams to try and unmask BT's hidden price rise scam on Oct 1st.
My calculation is that the hidden rounding up by 0.5p instead of 0.1p on each call could be worth £20 million to £30 million a year. So if you were BT why not take the money when a dosy regulator like Ofcom allows you to and an often equally lazy consumer press does not spot the fact. I will also send this to a few newspaper consumer journalists:-
-------------------------------------------------------------------
To:- BBC Watchdog and to BBC You & Yours Programs
BT have tried to sneak through two significant price rises from 1st October 2005 which they have tried to hide away in the small print of one of their Update magazines with BT phone bills -
www.bt.com/update1. Firstly they are changing the way they charge offpeak calls in the evening and weekend on BT Options 1, 2 and 3 (the packages which 99% of BT customers are on) to normal geographic phone numbers (the ones starting 01 or 02) so that although they will only continue to charge 5.5p per minute for the first hour of each call they will start charging 3p per minute instead of the current 1p per minute for the second and subsequent hours.
So accidentally gas away to a friend for 2 hours in the evening and the weekend with BT and the call will cost not the 5.5p you might be expecting but a cool £1.86! BT General Manager of Pricing Policy & Design, John Strutt, has said to me on the phone that only a small percentage of calls go into this second hour. But if this is the case then why try to impose a sneaky 200% increase in the call cost?
2. BT's Second sneaky price increase in their Update bulletin for customers is contained in the hard to understand phrase "from the 1st October 2005 the calculation for determining the call charges for selected call types will be changed from rounding up to one tenth of a penny, to rounding up to half a penny"
What this actually means is that a call that previuously cost 7.1p on your bill will now cost 7.6p and a call that cost 8.6p will now cost 9p. This means that in pratctice on average for every phone call you make BT is likely to end up with another 0.2p per call. It doesn't sound like much but if you make 10 calls a day then in a 90 day bill quarter it would cost you another £1.80. So to BT the change could be worth perhaps £25 million a year or more. Strangely Ofcom the regulator that is supposed to be ensuring greater price competitiveness by BT seems to have let this go through without a second thought.
My complaint is that as BT only bill once a quarter it is doubtful that the Update magazine they sent out for the whole quarter before 1st Oct 2005 actually contained these price rises. Certainly I don't remember them being in the printed update that came with my bill that I did read. Although the price changes are shown in the Update that is now on the BT website this could have been amended by BT at any time.
So it looks like BT may have sneaked through a price change that not all customers know about and to which they have given very little publicity to indeed.