/ 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.

Comments

When Orange put prices up last year (or it might of been the year before, not sure), I refused to pay it. Yes Orange put a default on my credit file, they sold my debt and all that. But I carried on fighting and just a few weeks ago won my case, the balance is £0 and the credit file is fixed: https://twitter.com/NewtBeaumont/status/445508041635426304

Just goes to prove, you do not need to put up with this rubbish, fight back!

Shame Louise Mensch didn’t redact her the address on one of her recent tweets, oopsie.

Luckily my Orange contract comes up for renewal on May 15th – Guess what – I won’t be staying with them.

I have been following the Which? campaign ‘Fixed means Fixed’ closely. Took out a 24-month Orange contract in May 13 and within 2 weeks, they put the price up. Exactly 11 months later, they have sent another letter stating the price is going up again by 2.7%. So, in a 24-month fixed price contract, I have already suffered 2 price hikes in 12 months. Illegal & not complying with Ofcom ruling…? They think NOT, as I signed up before 23rd Jan.

As a matter of fact, I have 2 contracts with EE (TMobile & Orange) and one of which is finishing by 1st week of May. I have given them 30-days notice and got the PAC code as I dont want to part my money with a network that decides to get around regulations and abuse their customers. They may be richer by 99p extra every month on my ongoing contract but are set to lose ~£30 every month, which I would have renewed otherwise as has been the case for the past 6 years.

Equally, I think Ofcom is toothless and not fit for the purpose.

Jenny says:
9 April 2014

Q. If your contact comes to an end and you decide you want to stay with that company and you agree a new contract does that mean the of com rules apply or is it classed as a continuation of the contract.

@Jenny: Ofcom rules should apply to any contract, new or renewed after 23 Jan. Although you are renewing, technically you are signing up to a new contract.

john stork says:
9 April 2014

had so much trouble with there site that after all the years i have been with orange will be coming to an end and the wfes accoun t

For a communications company, their website is the poorest out there. Don’t know one worse!!!

Richard Paige says:
9 April 2014

Can anyone explain to me how EE (or O2 or any other provider) can do this?

I understand that Ofcom issued a new consolidated version of general conditions on 26/12/13 and guidance in relation to 9.6 in January 2014.

However, Ofcom’s website states: “Ofcom is today telling providers how to interpret and apply current telecoms sector rules in relation to price increases during fixed-term contracts. Ofcom is also confirming the cancellation rights it expects providers to give consumers following price increases.”

Therefore, the rules are not new! All that is new is Ofcom confirming how the existing rules should be interpreted.

The previous general conditions (19/12/2006) contained a materially identical provision to paragraph 9.6 at paragraph 9.3:

“Where the Communications Provider intends to modify a condition in a contract with a Consumer which is likely to be of material detriment to the Consumer, the Communications Provider shall inform the Consumer of the ability to terminate the contract without penalty if the proposed modification is not acceptable to the Consumer.”

Given that Ofcom has confirmed that any price increase is materially detrimental, how can EE increase prices in relation to contracts entered into before 23/1/14, but not after? The rules have not changed!

Perth Elle says:
9 April 2014

I for one will be jumping ship for all 4 of my families contracts that’s an increase of £4 per month for me bang out of order – disgusted that loyal customers are ripped off time and time again

That’ll be 4 new contracts for tesco or O2 though

My orange contract ends soon. I will be going elsewhere . They have been awful with customer service too, I’ve had nothing but indifference and rudeness from them since they became part of EE.
But if your thinking of going to O2 be careful as I read in an email from which that O2 have also found a way around the new price hike ruling by writing the regular hikes into your contract!
Tesco mobile have decided to stick with the rules , so I may look into them :/

Please write to the CEO of EE

executive.office@everythingeverywhere.com

My letter arrived this morning. It’s a disgrace. It’s even worse that they try to pass the blame to the increase in the RPI which, they say, “directly affects the cost to run our business” – so now I have to pay more for my phone because bananas have gone up in price. I know who is really bananas! I’ll be saying goodbye but sadly not until July 2015!

Agreed, it a PATHETIC reason. Especially in light of the fact they are planning to float the business soon and are well on track for a 25% profit margin in preparation.

Also – by their own estimation (http://explore.ee.co.uk/our-company/newsroom/deutsche-telekom-and-france-telecom-plan-merge-t-mobile-uk-and-orange-uk-create/) – the Orange/T-Mobile merger savings will reach an annual rate of over £445 million from 2014 onwards. Was that cost saving ever passed on to us?

catherine gogarty says:
10 April 2014

I upgraded my phone last week as my Orange contract was due to end. I did not know that EE intended to put up their prices, had I known I would have gone to another provider at the end of my contract. I am very annoyed!

Bookworm says:
10 April 2014

Do you not have a “cooling off” period of 14 days in which you could jump ship?

Steven says:
10 April 2014

Their staff, when I called, apparently had no knowledge of the Ofcom rulling. Even when I read it to them verbatum down the phone they still denied any knowledge. My advice would be to call ofcom and make a formal complaint, the more people do it the better.

http://consumers.ofcom.org.uk/2013/10/protection-for-consumers-against-mid-contract-price-rises/

Also phone the respective companies executive office and again complain – think this is the one for EE 0800 079 006

My intention is to leave as soon as I am able but in the mean time I hope to waste as much f their time and money and cuase them as much hassle as I can.

If enough of us kick up a stink the cost analysis will no longer show the hike to be profitable

Richard says:
10 April 2014

I have not been directly affected by a price hike but find the practice deplorable. My T-Mobile contract is due for renewal on 18 April 2014 – I am not renewing. My family’s 3 Orange contracts will not be renewed. I don’t understand the short-term thinking or the morals of decisions like these; I don’t expect them to be a public service but customers are better informed these days and don’t like their loyalty abused. Own goal?

Jamie says:
10 April 2014

Come end of contract I’ll be asking for a PAC code and I’ll be taking my service somewhere else. Good luck being grEEdy!
Jamie

george says:
10 April 2014

Contract up in June, will not be renewing with t-mobile(EE).

Partner’s phone contract up in July, will not be renewed either Orange(EE).

Alex says:
10 April 2014

My husband and I both received our letters from EE this week about the price increase and we were pretty disgusted. It is utterly wrong that they have found loopholes to be able to just do what they want and fly in the face of legislation by Ofcom.
Sadly my husband and I both have several months to go on our contracts but we will definitely not be continuing with EE and will be looking elsewhere. I would have also liked the opportunity to leave my contract without penalty when EE took over Orange, just as I would like that option to be available now so I could get shot of them.

T Mobile have for the SECOND time in my contract said that they are increasing my payments, against strong critism from customers. When my contract ends this September I shall remember their “take it or leave it” arrogance and migrate to another network. One sided contracts are what I consider to be against our human rights and cannot be tolerated. Pete Thorp.

Z H says:
10 April 2014

There is soo much negative comments on the internet about Orange.

The cheif exective office takes ages to reply to you.

I have to email them every day

Sheridan says:
10 April 2014

Disgusting attitude, having had a mobile phone since the old “brick” days I will NEVER use EE or any company that treats its customers in this way, ever again. They will gain a few pence a month until next January and then lose £35 a month FOREVER.
Have they no brains? I’ll run the company for half the money and guarantee to make them more profit. Are they brave enough to do this?

I have been with Orange EE now for over 3 years , I left T Mobile before that as they would not let me change phones. Now EE have twice put up the prices, my contract finishes July, but I can leave or change phones in June after 24months contract for new phone or wait till officially July! I have my new phone I was told just to swap the SIM card as they are the same make. I am leaving EE as I am fed up with these fixed prices “rise” going to see if I have to pay to opt out now & is it going to cost me to do this.I would now like to have pay & go instead of contract because my phone bill with Orange “EE” goes up every month & when I ask why am told, ” oh you had calls or texts to people that cost over the limit” When I ask who, they give me the numbers to phone! To tell them to stop! I’ve said can’t you stop them as it’s going to charge me to tell them to stop!! But no do it yourself! So it’s bye bye EE.