EE to replace RPI increases with CPI+3.9%!!!

[Plymouthbloke1]

Hold onto your hats people..... from next year EE is reportedly replacing RPI with the slightly lower CPI figure.... but slapping 3.9% on top of that figure! So for example of CPI was 2% next year, the price increase would be 5.9%!

So, this will involve a massive change to consumers terms and conditions. Will this allow customers to exit their contracts without penalty? 

This is going to backfire spectacularly methinks....

[Northerner]

Hi @Plymouthbloke1 

It's ok leaving EE but then you face similar increases with other networks, which are inferior.

It is a Kobayashi Maru (no win) situation. 

Thanks

[Plymouthbloke1]

Not as high as other operators! CPI+3.9% is quite a lot! And I wouldn’t class Vodafone as “inferior” to EE...

[Largewhippy]

Why 3.9%? How is that calculated? What does that represent?

Just had my price increase email and was not aware this was happening.

I've been a customer of EE with 4 phone contracts for 10+ years and have always been aware of and accepted the annual RPI increase - it's inflation after all. But this is a flat 3.9% increase - for what??? - on top of inflation!!!

[Katie_B]

Hello @Largewhippy. 

Welcome to the community.

As you have multiple plans with us with different rates applied, you need to know about both RPI and CPI+3.9%.

This is because RPI impacts any contract that started before 1 September 2020, and CPI+3.9% impacts any contract that started from 1 September 2020.

You can find more information HERE. 

Katie 🙂 

[Largewhippy]

Thanks @Katie_B 

I fully understand RPI and CPI.

What I do not understand nor can I find any explanation for is the "additional 3.9% added by us". How is that calculated? What does it represent? Why is it added on top? Just seems like an additional levy/charge to me, over and about any inflationary increases you might be seeing across the business.

[ElliottLucas]

I don’t believe in no win situations 

😅😅😅😅

*reprograms simulation* 

[Katie_B]

Hi @Largewhippy

CPI+3.9% reflects the level of investment we need to make within our business to continue our major investments in networks and service, while also prioritising vulnerable customers suffering fro financial hardship or digital exclusion.

Katie.

[Largewhippy]

Amazing! With investment levels at more than SIX TIMES the rate of inflation (as measured by CPI), then I guess we can all expect the EE network and customer service to be absolutely phenomenal in the future. 🤔 I certainly hope so, as it seems existing customers are the ones funding such investment.

[BrendonH]

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@Largewhippy wrote:

Amazing! With investment levels at more than SIX TIMES the rate of inflation (as measured by CPI), then I guess we can all expect the EE network and customer service to be absolutely phenomenal in the future. 🤔 I certainly hope so, as it seems existing customers are the ones funding such investment.

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Well yes us customers are funding the investment.

Without customers they can't invest as they'll have no money.

Simple business.