/ Money, Technology

EE announces price rise for loyal customers

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EE has announced a 2.7% price rise for EE, T-Mobile and Orange customers who signed before Ofcom’s new rules came into effect. Have you been contacted by EE about a price rise?

From 28 May, EE’s pay-monthly contract customers will be hit by a price rise of 2.7%. The increase is in line with the Retail Price Index rate of inflation as announced in March this year.

The price rise will add 68p to a £25-a-month contract, and if you’re unhappy with the hike you’ll have to pay the cancellation charges that apply.

So far, so similar.

Customers after 26 March

However, the price rise will not apply to customers who joined or upgraded between 23 January and 26 March 2014. Ofcom’s new rules on mid-contract price hikes came into effect on 23 January, thanks to the 60,000 people who supported our Fixed Means Fixed campaign. However, for people who signed after 26 March, EE customers will be hit by a price rise once a year, every year in March. EE comments:

‘Contracts entered from the 26th March will be subject to terms and conditions stating that their monthly price plan will be increased in March each year by the latest rate of RPI. The first increase does not take place until March 2015.’

No more price hikes

We wrote to EE last month asking it to make a solid commitment to keep prices the same during the full term of its customers’ contracts. It’s therefore disappointing that EE has made a last ditch attempt to hike prices for its loyal customers. The fact that EE is writing yearly price rises into its customers’ contracts, just like O2, is even worse and not in the spirit of Ofcom’s new rules.

We’ve also had assurances from other providers, including Three Mobile, that they’ll stick to the spirit of Ofcom’s new rules and won’t increase prices mid-contract, and we expect this to be EE’s last. We hope EE’s customers will take a stand and show their provider they won’t put up with this by choosing other operators who are playing fair and who offer fixed prices, that stay fixed, for the duration of the contract.

Have you been contacted by EE about a price rise on your contract? What do you think about it? Will you be looking to switch to another mobile phone provider?

[UPDATE] – This post has been updated to reflect the fact that EE customers who sign after 26 March will be agreeing to yearly RPI price rises. And for that reason we have launched a call to EE’s CEO to think again – you can help by joining more than 3,000 others in emailing EE’s CEO.