Disgusting Price Increase!

[Cookyweb]

I've just had the email that you are now cashing in on the cost of living crisis by smashing a massive 14.4 % increase on my bill.

Its absolutely disgusting, at a time when people are struggling to eat and heat their homes you decide to hit us with that ridiculous increase, not just a few % you up it by 14.4%

Its sick and I'll never be using EE again when this contract ends, I'll also be going out of my way to warn other people from using you, there's absolutely no justification in a hike like that, its pure greed and you should be ashamed.

You're a disgrace!

[DisgruntledFool]

You’re right in that it’s certainly a reminder to never trust a company and scrutinise T&C - I probably deserve a £200 penalty for that faux pas. 

It doesn’t really matter when it happened. Just so happens that I’ve only recently become so acutely aware of how govt and big business have engineered a docile compliant society who just bend over whenever it’s ‘shower time again.’

I’m not a completely stupid human, but I am so guilty of falling for the fluffy marketing. We’re not valued customers - or even human beings to these companies. Just cash cows. Mobile phone companies rank right along with insurance and double glazing companies of old. If I help just a handful of people realise that and walk away for life, then it’s time pretty well spent for me. 

[bristolian]

Your alternative option is to purchase your chosen phones SIM-free, and just have a SIM-only plan with your chosen operator.

Many people balk at the cost of modern devices, though.

[Mustrum]

@DisgruntledFool  if this was a recent thing I could more understant the  frustration, or maybe it has been a recent change of your circumstances - but the CPI+ increases have been going on for three years.

Buying a phone and mobile service has changed, perhaps sim only and keeping the phone for longer might help you going forward.

[DisgruntledFool]

Both you and @bristolian  are right in that the path for me going forward is to buy the handset outright or get a normal loan with a fixed interest rate. If a bank offered a loan contract with a CPI+3.9%  clause, they’d be out of business pretty quickly. Even with a mortgage, you get the option of a fixed rate for the lock in period.

I know it’s been since April, but I have genuinely just realised how Western culture is one of governments and businesses pretending to be on your side while they quietly screw you blindly. I have to confess I have in the past just trusted big businesses and government that they wouldn’t (sucker for good marketing and politics obviously), so I do deserve all I get to be fair.

This will certainly be the last ever contract I have and the last pennies BT and EE will ever get from me and my family, so I hope the shareholders enjoy the £200 - been a loyal customer for 7 years with 3 regularly renewed family contracts + broadband and Sport, so their short term greed has cost them thousands in this case.

There is absolutely no justification for a 15%  increase aside from assuming we’re stupid and profiteering. Inflation hiked unexpectedly and rather than do the decent thing and calculate a fair increase that covered costs, they hid behind T&Cs whilst rubbing their grubby little mits. 

It isn’t about the ££ - I’m not so hard up it makes a difference to my life, it’s just the principle of the sheer ugliness of corporate greed at its worst. The council are getting similar treatment for their unnecessary hike in council tax - and I’m on a mini mission to exclude myself from as many fees all the insidious entities try to claw from me as I can. It’s kinda fun and I’ll enjoy the extra cash when it comes to be fair. 

[Chris_B]

@DisgruntledFool   you are aware that these companies also pay for electricity, and everything else that you pay for at home, but in a business so there’s no reason or justification to increase prices!!   New parts are required and  obviously the companies are making these parts have probably put up prices because of production costs you know electricity.      Think about it 

Yes companies could have done something a bit fairer to consumers but aren’t these companies also getting an increase in costs.  

[DisgruntledFool]

Hi Chris,

In the business I’m in, our operating costs have gone up circa 17%. It’s a small business compared to EE (TO @ £50m). Our customer pricing has been adjusted to allow for those increased costs .

So costs were £11m. Now £12.87m

We saved the £0.87m with various efficiencies which every company in the world does. 

That left £1m to find assuming we pass on 100% and don’t absorb some (which isn’t the case).

We have a net profit of 20%, so to cover that we have to make an extra £5m. That’s a max 10% price increase assuming a) We pass on 100% and b) Don’t look at any other options to make up the shortfall - and c) Don’t absorb some of it. 

Now the important difference is we buy and sell daily so inflation affects us quickly, but only on future transactions - NOT historic transaction. As such, anyone with a credit account is unaffected since historic transactions were made at the appropriate margin at the time.

If we adopted the EE model, we would be approaching all those customers who bought goods on their credit account and applying the 10% increase retrospectively. 

The cost of a handset bought and supplied in January is not affected by a March price increase - or a 2024 price increase. So yes, absolutely add 15% to the mobile and data element as those are incurring  increasing costs to supply, but to apply it to a handset bought and sold in the past is the most disgustingly greedy practice I have ever known.

Example…

Handset cost = £1000. Bank loan = 5% over 24 months

Total paid = £1051.52

Similar example under the robbing cowboys EE:

Handset cost = £1000. Unspecified interest rate, but absolute minimum of 3.9%. In this case year 1 is 14.5% - you’ll learn year 2 at some point. 

Total handset cost - you’ll find out when you’re between 12 and 24 months through the contract.

Ballpark estimate - £1300

I sometimes feel if they had put “you will sacrifice your firstborn to us” in their T&C, people would still jump up to defend them?

It’s cynical, unscrupulous and deeply devious business practice. I don’t personally care what’s written in their T&C - in terms of business practice, it’s as legitimate as double glazing sales and banking of old.

The FSA and financial Ombudsman tore the banking sector a new one for their disgusting practices. Their ridiculous T&C didn’t save them and I sincerely hope mobile giants are next in the hit list. I’ve certainly lodged my complaint and continue to raise awareness wherever I can. 

[uvarvu]

My wife’s contract is now SIMO.    Lesson learnt regarding the price increases - never ever taking out a phone contract again.

[FLEETFANATIC]

Exactly my point. My entire bill went up 25% overall, thieving of the highest order.

They know they were wrong too, as they now seem to be copying others in going down handset/airtime split route.
Except they are still an absolute rip off.

s23 ultra 512gb - £51.25 a month for the handset, which is competitive, just about.

But then the airtime starts at £23 a month for 25gb, even more for more data.

Not being funny but my wife pays less than £10 for 20gb sim only on vodafone.

[Kirigaya_Kazuto]

This is why you buy your phone and sim separately

I pay £5 a month for 20gb on Lyca (who run on EE)

£57 a month for my iPhone (with Apple Care +) through Apple/Barclays

[bristolian]

Being candid, EE are far from the worst offenders here - and leaving over pricing issues could result in a worse overall service.

Identify the network which provides you with the best overall coverage/service, and then consider the SIM-free route. And ensure you research the price-rise clauses your chosen network has, because at least one has worse than EE's.