Thu, 30 Oct 2025

Thu, 30 Oct 2025 Watchdog slams O2 over unexpected price rise

The media regulator said it was disappointed O2 raised prices more than was advertised when customers took out contracts.
O2 has increased prices by more than it promised customers when they signed up for their phone contracts, according to Ofcom. The regulator said this goes against its rules on transparency and fairness to customers. O2 says it has not broken any regulations, but consumer expert Martin Lewis claims this sets a bad precedent for other companies. O2 told customers that prices would rise by £1.80 per month, but the actual increase is £2.50. The company gave customers 30 days' notice before the price hike takes effect in April 2026. Lewis argues that older and vulnerable customers may not be aware of the increase or be able to switch contracts. Ofcom's rules were introduced in January to prevent unexpected price rises during a contract. O2's price increase is a flat fee rather than a percentage of the monthly bill, which some argue gets around these regulations. Telecoms analyst Paolo Pescatore says O2 is "pushing the boundaries" of these rules. Citizens Advice director Tom MacInnes claims that Ofcom's actions have not gone far enough to protect consumers from mid-contract price rises. Lewis has written a letter to the chancellor, technology secretary, and head of Ofcom about this issue, but Ofcom has not commented on it. The incident highlights concerns about transparency and fairness in the telecoms industry, with some experts calling for greater regulation to prevent companies from taking advantage of customers.
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