Broadband, TV and cellphone customers will probably be given the possibility to keep away from hefty worth hikes when their contracts finish below guidelines taking impact on Saturday.
UK watchdog Ofcom says customers may save £150 a 12 months on broadband alone as soon as they’re knowledgeable of different offers.
Around 20 million customers are out of contract with their suppliers, leaving many paying greater than they should.
The regulator says individuals can earn huge month-to-month financial savings if they’re informed prematurely of reductions on new offers.
Matt Powell, editor at comparability website Broadband Genie, mentioned the requirement for firms to warn when contracts are about to run out would assist loyal customers stay on the most effective plans.
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“Many broadband deals are sold with discounts for the initial contract term, and although these are often good value for the first 12 or 18 months, the cost after the discount ends can be substantially higher,” he mentioned.
“Regularly switching will let you take advantage of the latest offers and perhaps get you a faster connection. And if you don’t want to switch, you should always negotiate with the provider at the end of your contract term to see if a better deal is available.”
Some 25,000 broadband customers come out of contract every day, normally resulting in an automated worth rise.
Ofcom says the brand new guidelines, which come into drive on 15 February, may assist shoppers save £150 or extra on their annual payments.
Service suppliers might want to textual content, electronic mail or write to their customers between 10 and 40 days earlier than their contracts come to an finish, giving particulars of:
- the date their contracts might be terminated with out penalty
- the value they’ve been paying
- any changes to the value or service that come into impact routinely after that date
- how a lot discover they should give to cancel the deal
- the most effective various subscriptions on provide, together with the costs charged to new customers