Broadband firms try to block plans for poor service compensation

THE UK’S biggest broadband providers are attempting to block plans for a compensation scheme for people who suffer broadband and phone service problems, Citizens Advice has warned.

BT, Virgin Media and Sky have shunned Ofcom plans for a mandatory compensation scheme and instead proposed their own, which would be voluntary.

But campaigners have warned the measures would see consumers lose out on at least £52 million and are calling on Ofcom to stand firm and not bow to industry pressure over compensation.

The voluntary minimum payment proposed by the providers is as much as £10 less for a missed appointment than the minimum proposed by Ofcom, according to an analysis by Citizens Advice.

Grant Shapps, chairman of the British Infrastructure Group of MPS (BIG), said: “Time and again the sector has failed to compensate consumers for poor broadband.

“That’s why BIG is calling for ministers to stop dilly-dallying and use the powers that Parliament has provided to guarantee compensation for households who are fed up not receiving the internet service they’ve paid for.”

Under the proposed industry payment, customers would receive £20 for a missed appointment slot or cancellation with less than 24 hours’ notice, compared with £30 under the Ofcom scheme. Customers would receive £7 a day for a loss of service beyond two days under the industry’s proposals, whereas they would be entitled to £10 by Ofcom.

An analysis of 1,000 cases reported to the Citizens Advice consumer service between August 2016 and May 2017 indicated that 18 per cent of consumers who called their helpline with broadband problems would be eligible to receive a payment under Ofcom’s proposed scheme.

Gillian Guy, chief executive of Citizens Advice said: “A watered-down compensation scheme would shortchange customers by millions of pounds. Broadband is now an essential

‘Time and again the sector has failed to compensate consumers for poor broadband’

service, with households relying on it for everyday activities, so a lack of a working service can make day-to-day tasks much more difficult.

“Ofcom was right to propose a mandatory scheme to automatically compensate customers when they get a poor service from their provider, this should put an end to consumers having to negotiate with their provider to get the compensation they deserve.

“The regulator must hold its ground and introduce a compulsory automatic compensation scheme that clearly lays out how much consumers are entitled to when they get poor service, with the amount providers have to pay reflecting as closely as possible the detriment faced by consumers.”

BT, Virgin Media and Sky did not respond to a request for comment.