Virgin Media has just begun emailing customers to confirm how their bills will be affected by upcoming price hikes. In the past, Virgin has always worked out its yearly cost increases based on numerous factors such as market conditions but that will all change in 2024.
From next year, Virgin says it will start push things up by the Retail Price Index (RPI) rate of inflation plus an additional 3.9 percent.
RPI currently stands at around 9 percent meaning Virgin users face bill increases of almost 13 percent when things go up next year. That will add over £4 per month to a current £40 plan or more than £6 if you are now paying £60.
Of course, if RPI falls or rises it will change what is added to monthly bills so we won’t know the full impact of what’s to come until January. That’s the date when the official hikes will be announced with it then hitting bills from April 1st 2024.
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In the email seen by Express.co.uk, Virgin said: “We usually change our prices each year – writing to let you know how much they’re going up and giving you the chance to cancel. From April 2024, we’re doing things differently, so any price rise to your package will be made at the same time every year. This’ll be linked to the Retail Price Index (RPI) rate of inflation plus an additional 3.9% – which means the amount of any increase will be clearer, sooner.”
Virgin is not only the broadband supplier using this method to set pricing. BT, TalkTalk and Vodafone also increase bills using similar ways to work out how much extra customers will pay.
This way of working out bills saw some customers whacked by big increases earlier this year as inflation hit record levels. In fact, some bills jumped by over 14 percent.
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Virgin says that anyone unhappy with anything in its latest email can cancel their package, any time before 31/10/2023 without paying any early cancellation fees.
That means now could be a good time to shop around as the lower your broadband price is now, the less it will go up when the hikes come into force.
A Virgin Media spokesperson told Express.co.uk: “The introduction of inflation-linked price changes, which comes into effect in 2024 when RPI is projected to be lower than it is today, will give customers clarity and certainty about what to expect from their bills while fuelling the investment required both now and in future. We have clearly communicated these changes directly to our customers.”
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