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Plusnet Residential CPI Pricing and Terms FAQs 2020

The what, why and how of our new pricing and changes to our terms

On 7th October 2020, we'll be making some changes to our prices and terms and conditions. Here's everything you need to know.

Please note: if you’ve taken a fixed price contract, and you’re still within your minimum term on 7th October, these changes won’t apply to you on this date. For more information, take a look at the section below ‘What if I signed up to a fixed price contract and I’m still within my minimum term?'.

Why our prices are changing?

We're constantly looking to make improvements to our products and the services we offer you. This year that’s included updates to our Member Centre and more rewards and prize draws through My Perks.

These pricing changes will see us invest even more into giving you the broadband and line rental services you deserve.

So what prices are changing?

On 7th October 2020, we’re increasing our broadband and line rental monthly price in line with the Consumer Price Index (CPI) rate published by the Office for National Statistics in April this year. This rate is 1.5%.

What‘s CPI?

The Consumer Price Index (CPI) rate is a figure released by the Office for National Statistics. The CPI is used for purposes such as uprating pensions, wages and benefits and can help in the understanding of inflation on family budgets. CPI measures the average price change as a percentage for a basket of 700 different goods and services which households buy.

What if I signed up to a fixed price contract and I’m still within my minimum term?

If you’ve signed up to one of our fixed price contracts and you’re still within your minimum term on 7th October, it will do exactly what you’d expect. Your broadband and line rental prices won't change during the length of your contract.

When your fixed price contract minimum term ends:

  • Your broadband and line rental will increase to the out of contract price set out in our Price Guide at that time; and
  • Your terms and conditions will include an annual CPI price change. This means we’ll increase the monthly price of your broadband and line rental by the annual percentage increase in the Consumer Price Index (CPI) published by the Office for National Statistics in April of that year. We’ll do this so that the price increase takes effect in June of each year, starting from the end of your minimum term.

You can check your package details by signing into My Account.

When your fixed price contract minimum term is coming to an end, we'll send you an end of contract reminder and offer you an account review.

Will my prices rise on 7th October 2020?

If you don’t have a fixed price contract, or your fixed price contract minimum term has expired, the new price rises on 7th October will apply to you.

So, on 7th October 2020, we’ll take the CPI percentage figure published by the Office for National Statistics in April 2020. This rate is 1.5% and we’ll increase your monthly price by the same percentage.

Here's an example to show how the price rise works. Let’s say:

You have Unlimited Fibre Broadband and line rental and the price of your package is made up of:

Unlimited Fibre Broadband - £15.99 per month
Line rental - £19.99 per month
Your total monthly price up to 7th October 2020 = £35.98
The CPI index rate in April 2020 is 1.5%.

New monthly price from 7th October 2020 = £36.52
The new price of your package is made up of:
Unlimited Fibre Broadband £15.99 per month plus the 1.5% CPI taken in April 2020 = £16.23 per month
Line rental £19.99 per month plus the 1.5% CPI taken in April 2020 = £20.29 per month

If you receive a discount on your broadband and/or line rental price, the increase will be applied to this amount. You can check your current package details by signing into My Account.

How does pro rata billing work for the price changes?

Sounds a bit formal, but in no-nonsense terms, pro rata is simply a charge for part of the amount of your bill. Unless your bill date happens to be on 7th each month, your first bill after the 7th October 2020 will be a little different. You'll pay an additional pro rata charge to cover the number of days between the price increase and your bill.

You can find out more in our pro rata billing FAQ.

Changes to your terms and conditions

We’re also amending your terms and conditions so that from 2021 we’ll increase your broadband and line rental price in June each year. This increase will be in line with the Consumer Price Index (CPI) rate published by the Office for National Statistics in April of that year. If you receive a discount on your broadband and/or line rental price, the increase will applied to the discounted price. If the CPI figure is negative there will be no change to your broadband and line rental price in the relevant year.

So, for example, in June 2021 we’ll raise your monthly price by the CPI percentage figure published by the Office for National Statistics in April 2021.

We’ll always contact you before we increase our prices each June.

The changes to your terms and conditions will be from 7th October 2020 and they can be found here.

What changes are being made to Line Rental Saver?

Our Line Rental Saver option will also increase in line with the Consumer Price Index (CPI) rate published by the Office for National Statistics in April this year. This rate is 1.5%

This means if you choose to take Line Rental Saver from the 7th October, the price will be £213.03 equivalent of £17.76 a month (increased from £209.88, equivalent of £17.49 a month). Also our Line Rental Saver price will be subject to annual CPI price rises each June from June 2021 based on the Consumer Price Index (CPI) rate of inflation published by the Office for National Statistics in that April. Any price rises to Line Rental Saver will apply when you take or renew Line Rental Saver after the applicable rise.

If you are on a fixed price contract, during the minimum term of your fixed price contract the price of your line rental won’t change and you can renew your Line Rental Saver at the price you signed up to when you started your contract. When your minimum term comes to an end, if you wish to renew Line Rental Saver, you will pay the then applicable price set out in our Price Guide at that time.

Will there be any changes to early termination charges?

Yes. For any customer who signs-up or takes a new contract from 7th October 2020, early termination charges will also be subject to annual CPI price rises each June from June 2021 based on the Consumer Price Index (CPI) rate of inflation published by the Office for National Statistics in that April. Please see our Price Guide for details on how we calculate early termination charges.

What if I decide to cancel my contract because of these changes?

We’d hate to see you go and we’re always here to help if you want to contact us about any of the changes.

If you did decide to leave due to the changes, depending on the type of contract you have, the following would apply:

If your minimum term contract has expired:

If you wish to cancel your broadband and/or line rental, as your minimum term has ended, you can cancel at any time without having to pay an early termination charge. You’ll need to give 14 days’ notice and you’ll continue to pay for your all your services, during the notice period.

If you’re still in your minimum term contract:

You can cancel your broadband and/or line rental without having to pay an early termination charge. You just need to let us know within a month of receiving our email or letter which we sent you about the changes to your prices and terms, and give us 14 days’ notice. Once your contract ends you’ll need to still give this notice and during this period charges would still apply.

You can check your package details by signing into My Account.

If you need any help please just give us a call.