Martin Lewis, the well-known money-saving expert, has recently spoken out about how broadband companies are still finding ways to “rip off” their customers, despite new rules from Ofcom aimed at protecting them.

In a video shared on social media, Martin explained how internet service providers are navigating around these new regulations, leaving some customers still vulnerable to price hikes.

The New Ofcom Rules and Their Impact on Customers

For years, broadband companies were allowed to raise prices mid-contract based on inflation, meaning customers could see their bills increase even if they were locked into an agreement.

However, Ofcom has now banned these inflation-linked price hikes.

As of this year, broadband providers must clearly outline the exact amount by which their prices will increase and when that change will take place, ensuring greater transparency for customers.

The issue, however, is that these rules only apply to new contracts.

Existing customers could still face price hikes, and if companies fail to be transparent about the cost increases, customers have the right to leave within 30 days without facing penalties.

A Mixed Blessing: The Hidden Risks for Some Customers

While Martin praised Ofcom’s efforts to improve transparency, he pointed out that some customers might actually end up worse off under the new system.

Instead of inflation-based increases, some providers might choose to increase prices across the board by a fixed amount—such as £3.50.

For someone paying £20 per month, this would be a huge 16-17% increase.

On the other hand, those paying £40 might see a rise of just 8-9%. This new pricing structure could result in significant hikes for certain customers.

Martin also warned that many broadband deals may appear to be “cheap” at first glance, only to see prices rise drastically in subsequent months.

He used a hypothetical example, explaining that a contract might start at £20, but after a few months, it could jump to £30, then £40 the following year.

While this is an extreme scenario, it shows how companies might exploit the new pricing system to increase their prices over time.

Caution for New and Existing Customers

Martin’s advice to consumers is clear: before signing any contract or agreeing to new terms, customers must carefully read the fine print.

It’s crucial to understand exactly how much your broadband or mobile bill will increase and when those increases will occur.

By staying informed, consumers can avoid being caught off guard by future price hikes.

In addition to his broadband warning, Martin also shared a money-saving tip for energy bills during his recent live ITV show.

He revealed that EDF has launched a new tariff that could save some customers up to £100 on their energy bills.

The new offer adjusts standing charges in line with Ofgem’s price cap, meaning customers will pay lower fees when the cap decreases.

Understanding the EDF Energy Offer

The EDF deal targets customers with lower energy bills.

If you currently pay around £80 to £100 a month, this deal could significantly reduce your standing charges, which make up a larger portion of your bill when energy usage is lower.

However, Martin warned that for households with higher energy usage, this deal might not offer as much value.

For those paying more, he advised checking out comparison sites for better options.

In conclusion, while the new broadband and energy pricing rules offer more transparency, customers must remain vigilant.

Martin’s advice is to read the terms carefully, compare offers, and make sure you’re not being locked into unfavorable deals that could increase your costs down the line.v

This article was published on TDPel Media. Thanks for reading!

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