20th Feb 2020
New rules brought in by Ofcom, the UK’s communications regulator, will reduce customers’ annual household bills.
The new rules, which came into force on 15 February, require firms to alert consumers when their contracts are ending, meaning that customers will save on potentially unnecessary expenditure on phone, broadband, mobile and TV bills.
For example, Ofcom has revealed that every day 25,000 customers see their broadband contracts come to an end, with price hikes often automatically introduced.
The new rules mean that home telecom firms must inform bill payers between 10 and 40 days before their contract comes to an end. The suppliers must also tell consumers the new price they will pay once their contract ends.
The regulator believes that some households could potentially save more than £150 each year, while industry-wide consumers are expected to save in the region of up to £1 billion a year.
Lindsey Fussell, Ofcom’s Consumer Group Director, said: “Millions of people are out of contract right now and paying more than they need to.
“These new rules make it easier to grab a better deal. But you don’t need to wait to hear from your provider. Just a few minutes of your time could save you hundreds of pounds today.”