EE and O2 mobile customers to be hit with 1.3% price hike

Published by Helen Knapman on 24 February 2016.
Last updated on 24 February 2016

Millions of EE and O2 mobile customers will be hit with price hikes over the next few months.

From April, over eight million O2 customers will see prices rise by 1.3% in line with February’s retail prices index (RPI) rate of inflation.

The provider is also upping the cost of some out of bundle calls; for example calls to Jersey, Guernsey and the Isle of Man will increase from 35p/minute to 45p/minute from 1 April. 

EE customers meanwhile will see prices rise from 30 March, also by 1.3% in line with February’s RPI.

I’m an EE/O2 customer. Am I affected?

EE customers: Whether or not you’re affected depends on when you joined the telecoms giant:

  • Joined, renewed or upgraded before 26 March 2014? Your prices will not rise as you’re covered by different terms and conditions.
  • Joined, renewed or upgraded between 26 March 2014 and 10 February 2016? You’ll see prices rise by 1.3% from 30 March 2016, as your terms and conditions allow for it. 
  • Joined from 10 February 2016? Your prices won’t rise because these tariffs already account for current costs, according to EE.  You will however, be hit with an RPI linked price increase in March 2017.

 

Read our article EE brand to remain following BT takeover and what the takeover means for customers.

O2 customers: The price hike will affect those with pay monthly tariffs, including O2’s ‘Refresh Airtime Plan’ (but not the ‘Device Plan’ element), Sim-only tariffs, standard tariffs and mobile broadband tariffs.

Can I leave my contract penalty free?

EE customers: Regulator Ofcom’s rules say that if you joined on or after 23 January 2014 – which those affected by EE’s price rise will have done - you’re unable to leave your contract penalty free if you were told prices could rise at the outset. EE says customers joining on or after 26 March 2014 would have been told this. 

O2 customers: Regulator Ofcom’s rules say that if you joined on or after 23 January 2014, you’re unable to leave your contract penalty free if you were told prices could rise at the outset. O2 says customers joining on or after 23 January 2014 would have been told this.

With regards to O2 customers who joined pre-23 January 2014, O2 says its terms and conditions allow for prices to increase by RPI once a year.

However, in this scenario Ofcom’s rules say you can leave if price rises are of “material detriment”, but it doesn’t define what this is, so you’ll have to argue this point with O2. You can use free complaints tool Resolver.co.uk to help.   

What do EE and O2 say?

An EE spokesperson says: “As the UK’s biggest, fastest and most reliable network we work hard to offer our customers great value. Like many service providers, our Pay Monthly plans increase by RPI annually.

“This year our customers will see a typical rise of less than 50p a month. We’re currently contacting our customers to remind them this will take effect from 30th March 2016.”

An O2 spokesperson says: “We’ve adjusted our monthly tariff charges by 1.3% in line with the annual RPI change that we apply to our contracts each year.

“This adjustment means an extra charge of 22p per month for customers on our most popular pay monthly tariff. We continue to invest in our network and the services that matter to our customers while still offering great value for money.” 

EU bans mobile phone roaming charges: what does it mean for you?

More About

Leave a comment