O2 mobile users have been warned they will be hit with price hikes of at least 3.9% from April 2022.
It comes as the mobile network provider changes its terms and conditions.
Those who sign up to a pay-monthly or Sim-only contract with O2 from 25 March, including existing customers who renew their contracts after this date, will be hit with the price hikes.
Martin Lewis website moneysavingexpert.com has warned 'Airtime' prices will rise by at least 3.9% a year for new and renewing customers.
It claims that those taking out a deal or upgrading from 25 March 2021 onwards will see prices rise by 3.9% + inflation from April 2022.
This is because under new terms, O2 has written into contracts that it can increase the price of airtime each year, by 3.9% plus the retail prices index (RPI) measure of the rate of inflation in January (this is usually announced in February).
O2 customers who last took out a deal or upgraded before 25 March 2021 will see prices rise by inflation only in April 2021, and every April after – unless you renew.
These customers' prices will rise by January's RPI inflation – so the increase for this April is 1.4%.
Prices will continue to rise each April, unless you upgrade or take out a new contract after 25 March 2021.
If you last took out your O2 deal before 25 March 2021 but renew in the next few days, you'll effectively be able escape a price rise this year.
However, it may not be a good idea to renew now, seeing as you'll be locked into an above-inflationary hike next year.
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Those who are still in a contract unfortunately can't cancel penalty-free as a result of the hikes.
It was announced back in February that O2 has been fined £10.5m by telecoms regulator Ofcom for overcharging its customers.
For eight years, some customers who were leaving the network were double-charged some fees on their final bills, according to Ofcom.
It's reported that the error affected more than 140,000 pay-monthly subscribers between 2011 and 2019, totalling £2.4m.
O2 said it had refunded the money to many of the customers, adding an extra 4% to the sum involved, however it has been unable to contact some of its former subscribers.
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