19th July 2024

Ofcom prohibits inflation-linked price rises

Ofcom has announced plans to ban providers from including inflation-linked or percentage-based price rise terms in new contracts.

In December 2023, Ofcom consulted on making changes to require providers, where they apply in-contract price rises, to set these out upfront in pounds and pence and the point of sale. CCUK submitted a response to this consultation.

From January 2025, when the new rules come into effect, providers must include information about in-contract price rises to the customer in a clear and comprehensible manner to enable them to make an informed choice.

Ofcom are issuing guidance to accompany the new rules and to assist providers to comply.

More information can be found in Ofcom's policy statement here.

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