Ofcom has laid out plans to tackle mid-contract price rises, saying phone, TV and broadband customers must be told about possible hikes upfront.

The telecommunications regulator said that inflation-linked price hikes midway through contracts have caused them to become concerned about customers not having “sufficient clarity”.

In a proposed new rule for firms, Ofcom said “any price written into a customer’s contract would need to be set out in pounds and pence, prominently and transparently, at the point of sale”.

They added that would include “being clear about when any changes to prices will occur”.

Dame Melanie Dawes, Ofcom’s chief executive, said: “At a time when household finances are under serious strain, customers need prices to be crystal clear.

“But most people are left confused by the sheer complexity and unpredictability of inflation-linked price rise terms written into their contract, which undermines customers’ ability to shop around.

“Our tougher protections would ban this practice once and for all, giving customers the clarity and certainty they need to secure the best deal for their needs and budget.”

Between January and October this year, Ofcom received over 800 complaints related to price rises – almost double the amount received during the same period in 2021.

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The regulator also found in its own analysis of data that as of April, 11 million broadband customers and 36 million mobile customers were on contracts subject to inflation-linked price rises.

Every April, many broadband and mobile firms raise their prices in line with the Consumer Price Index (CPI) or the Retail Price Index (RPI), plus an additional 3.9%.

Which? recently said it expects the bills for customers of EE, Three, and Vodafone to jump by more than 8% from next April, while O2 customers could see rises of more than 10%.

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