Group's call over broadband penalties

Broadband firms have been urged to drop penalties for customers leaving mid-contract amid concerns of impending price rises or exit fees of more than £200.

Millions of broadband and mobile phone customers can expect to face monthly bill increases of at least 14% from April because many providers link their annual price rises to January's inflation figure – 10.5% this year, plus between three and 3.9%.

Consumer watchdog Which? warned that given many customers saw their broadband bills increase by nearly 10% last year, this is" anotherblow" for those looking to keep costs under control.

Ofcom rules state that telecoms providers must offer their customers the right to exit their contract penalty-free if they are subject to unexpected price rises which are not provided for in their contract.

But because mid-contract price rises are written into the terms and conditions of some people's contracts, Ofcom's rule is that in those cases the customer does not have the right to exit penalty-free meaning they have no choice but to accept the new higher price or pay an exit fee to terminate their contract.

Which? is calling on all providers to" carefully assess what level of mid-contract price rises can be justified in the current economic climate".

Rocio Concha, Which? director of policy and advocacy, said: "It's hugely concerning that many broadband customers could find themselves trappedinalose-losesituation where they either have to accept exorbitant - and difficult to justify - mid-contract price hikes or pay costly exit fees.

"We are calling on providers to let their customers leave without penalty if they face mid-contract price hikes.”