BT has announced price rises from 16 September -
http://www.productsandservices.bt.com/consumerProducts/displayTopic.do?topicId=2....
Most significant is the increase to the call set-up fee, from 6p to 7p. This charge applies to calls to 084x and 087x numbers at all times.
Those who are on the 12 or 18 month contracts for "Anytime" or "Evening and Weekends" may be interested to note that this change is NOT deemed to be to their "material disadvantage". This means that the waiver of the cancellation charge, in the event of terminating the service due to a price increase during the term, DOES NOT APPLY. BT claims that call charges are NOT a feature of their terms and conditions of service, so they cannot represent a "material disadvantage"
Ofcom takes a different view. It believes that only changes which increase the total monthly cost by 10% or more are "material".
I am inclined to disagree with both Ofcom and BT on this matter, however this is probably a matter for lawyers.
The on-going Ofcom "
Review of additional charges" is covering "early termination charges", but the issue of what qualifies as a "material" price change is outside the scope of this exercise.
Here Ofcom states that "it is important that suppliers make it very clear to consumers the level of any cease charge at the point at which the consumer is considering terminating their contract". I would have personally thought it more important to explain to customers at the point of considering entering a contract that the price may increase by up to 10% and/or that call charges are not covered by the terms of the agreement.
BT's response to the Ofcom consultation is interesting, as it takes an opposite view to that stated above with regard to the relevance of call charges to a contract. Whilst believing that call charges are immaterial to the customer, it states that income from calls should be relevant to the setting of the level of the "early termination charge".
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BT price rises 16 Sep - "no material disadvantage" (Read 4,767 times)
