Ofcom decides Orange contract price increase doesn’t warrant a probe

Orange was at the top of Ofcom’s list this year and was named as one of the UK’s top mobile phone providers. Along with O2, Orange was able to get a satisfaction score of 72 out of a hundred in the survey with 3,000 respondents.

But one move that might turn off some customers was the operators decision to hike up the monthly rates for its mobile subscribers. In mid-December, Orange announced that they would be increasing the monthly mobile charges by roughly 4.3%. The increase was said to be implemented last January 8.

Of the price hike, Orange stated: “Unfortunately, we’ve had to re-evaluate our prices for the first time and are sorry to say that there will be a 4.34% increase in our monthly plan prices … This is lower than the retail prices index (RPI) measure of inflation, which currently stands at 5.4%. Out-of-plan charges, such as calls, texts and data, will not be changing.”

The increase resulted in some consumers calling on Ofcom to conduct an investigation into the matter. However, the regulator has dismissed any possibilities of a probe, saying that the price increase that Orange has implemented is “not likely” to breach legislation.

An Ofcom spokesperson has said that while it is aware that many customers are outraged and unhappy with the price increase, the organisation didn’t find that it warranted a probe. She stated: “Having assessed the complaints against the relevant consumer legislation, Ofcom has decided on the evidence available not to proceed with an investigation at this time as this price rise is not likely to be a breach of current legislation.”

Orange had pointed to rising inflation as the main reason for the increase in monthly charges. The operator was also quick to point out that the increase it had implemented falls below the 5.4% Retail Price Index measure of inflation, which keeps close tabs on the changing prices of goods and services that are commonly used.