Regulator concerned about price rises

The regulator says it is concerned about the degree of uncertainty consumers face about future price rises outlined by providers.

Many customers have seen their contract charges increase dramatically over the last year and are likely to see that again in April due to dramatic rises in inflation.

Since contract lengths are often 18 months or more, the possibility of big changes in the inflation rate is likely to occur during the lifetime of the contract, and customers often have no way of ending those contracts without paying an exit fee if the payments become unaffordable.

Ofcom is going to publish its report later this year and make a decision on whether or not it will intervene to make sure customers know exactly what they could be paying when they sign the contract.