WE'RE CHANGING THE TERMS & CONDITIONS FOR YOUR PRICE PLAN(S)

What is happening?

From 1 November 2022, we’re making changes to your current terms and conditions by moving to a single annual price increase that is based on the Consumer Price Index (CPI) which is the figure published by the Office of National Statistics (ONS) as a measure of inflation.

Each year we will adjust the amount customers pay per month for our services according to the CPI % rate of inflation figure plus an additional 3.9%

The CPI % rate of inflation figure we’ll use is the December % rate of inflation published by the ONS in January of each year, and we’ll adjust monthly charges by this amount, plus an additional 3.9%, on or after 31 March of the same year.

The first annual price increase based on the CPI % rate of Inflation plus 3.9% will take place on or after 31 March 2023.

For example, if the CPI % rate of inflation figure published in January 2023 is 2.0%, then the monthly charge from 31 March 2023 will increase by 5.9% (2.0% + 3.9% = 5.9%)

If the CPI % rate of inflation figure is negative in the relevant year, we will only increase monthly charges by 3.9%.

What this change means for you

From 31 March 2023, your bill will show a CPI % rate of inflation + 3.9% increase on the price of your monthly plan.

Please note the terms and conditions for your eligible add on(s) and out of bundle charges are not changing – these are already subject to the CPI % rate of inflation + 3.9%.

Further information can be found in the non- standard price guide for EE Small Business

What Is Consumer Price Index (CPI)?

“CPI”, is a figure published by the Office for National Statistics (ONS) as a measure of inflation. It is a reliable measure to reflect the increase in the costs to run and invest in the network and services we provide. 

CPI is a measure of whether the cost of goods and services is going up or down based on average price changes from across several industries and measures inflation by taking a basket of goods (e.g., food, clothes, petrol etc.) looking at what they cost last year, looking at what they cost now, and finding the difference

However, CPI leaves the costs of your home out of the basket (e.g., rises in mortgage payments, rents, and council tax) so they don’t get reflected in it.  A new index is published every month.

 Find out more about CPI from the Office of National Statistics

Why are we moving to CPI+?

In the telecommunications industry the Retail Price Index (RPI) has been historically used as a measure to determine annual price increases. As per the Office for National Statistics, the Consumer Price Index (CPI) is now established as "the most comprehensive measure of inflation". As such from 1 September 2020 we took the decision to amend our terms & conditions across BT Group (which EE is part of) to utilise CPI as the primary basis for annual price rises.

What is the difference between CPI and RPI?

CPI and RPI come with different values as they are calculated using different tools. RPI includes council tax, mortgage interest payments, buildings insurance and house depreciation in addition to the items included in CPI.

The CPI calculation covers a broader section of the population in relation to RPI calculations. CPI weightings are based on household spending in the National Accounts while the RPI weightings are based on Food Survey and ONS Expenditure.

What CPI % inflation rate will we be using?

The CPI % rate of inflation figure we’ll use is the December % inflation rate published by the ONS in January of each year, which measures the average change in prices for consumers across the country, over the last 12 months. We’ll adjust monthly charges by this amount, plus an additional 3.9%, on or after 31 March of the same year.

As an example, this would mean for a monthly price of £40, if we used a CPI % rate of inflation from December 2022 of 2.0% and then add 3.9% (e.g., 2.0% + 3.9% = 5.9%). The monthly price would go up by £2.36 on 31 March 2023.

If the CPI % rate of inflation figure is negative in the relevant year, we will only increase monthly charges by 3.9%.

If the CPI % inflation rate is negative does this mean you will decrease pricing?

No, we would take CPI to be 0%, so the price change would be 3.9%

Why do you add 3.9% to the underlying CPI % inflation rate?

As the UK continues to embrace Digital technologies, the demand for the Connectivity & Services that we provide is always rising. In order to maintain the quality of our network for our customers we are continually investing in it, which is a very capital-intensive activity.

The CPI element of our annual price increases enables us to continue to run our network in light of cost & wage inflation, whereas the 3.9% enables our continual investment in the UK’s digital future, the improvement of customer service and propositions and will enable us to increase social inclusion through widening our network footprint.

Can I cancel my contract because of the changes to terms and condition of contract from RPI to CPI + 3.9%?

If a subscription is out-of-contract at the time the account is notified, you can leave any time without incurring termination charges but will need to give us 30 days' notice to cancel. 

If a subscription is in contract at the time the account is notified and you decide to cancel because of the terms & conditions change, you can leave without incurring termination charges but you will need to call EE to cancel within 30 days of notification of the change.

What happens if I upgrade?

When you decide to upgrade or resign you will be advised about the annual price increase impact to your price plan and other products at the point of the upgrade or resign. All customers upgrading or resigning from now on will be subject to CPI % inflation rate+ 3.9% increase based on the latest terms.

What is an add-on?

An add-on is a package of minutes, messages, data, or services you can buy.

What is an out-of-bundle charge?

As part of your price plan, you'll get a call, text, and data allowance. There are restrictions on where and how you use these, for example calls will be restricted to UK mobile networks and UK landlines starting with 01, 02 and 03.

When you go over these limits, you'll be charged according to our standard rates. These are also known as out-of-bundle charges, such as calling to and from abroad.