Consumer champion Martin Lewis has issued an urgent 'beware' alert for O2 customers who are being hit with unexpectedly large bills after deciding to leave the network.
The Price Hike That Sparked the Warning
The situation unfolded after telecoms giant O2 unexpectedly announced it was increasing prices by £2.50 per month. The BBC and ITV money expert took to social media to clarify customer rights following what he described as unclear messaging from the provider.
O2 stated in an official communication: "We appreciate that price changes are never welcome, but we have been fully transparent with our customers about this change, writing directly to them and providing the right to exit without penalty if they wish."
Understanding Your Rights and Options
The 52-year-old financial journalist provided crucial clarification for affected customers. "Beware unclear O2 messaging!" Lewis wrote. "When it notifies you about its hike on its airtime price hike - you've a RIGHT to leave penalty free within 30 days of notification."
He specifically addressed confusion around device plans, explaining: "Yet it also says 'If you've a device plan, you'll still need to pay this off in full'. That DOESN'T mean you have to pay it all now, you can keep paying for the handset monthly with it, but move your Sim (ie airtime plan) elsewhere."
Political and Regulatory Response
The price increase has drawn criticism from political figures and regulatory bodies. Labour Party Technology Secretary Liz Kendall described O2's higher-than-expected price increase as "disappointing given the current pressures on consumers."
"I believe we need to go further, faster. I am keen that we look at in-contract price rises again," she wrote in a letter to the media regulator.
Ofcom responded by confirming it shared the government's concern that "customers who face price rises must be treated fairly by mobile providers." However, the company maintains it has not breached regulations, noting that Ofcom's rules do not prevent providers from implementing price increases.
O2 defended its position by stating: "A price increase equivalent to 8p per day is greatly outweighed by the £700m we invest each year into our mobile network, with UK consumers benefitting from an extremely competitive market and some of the lowest prices compared to international peers."
Tom MacInnes, director of policy at Citizens Advice, argued for stronger consumer protection: "We've always said fixed should mean fixed," he stated, adding that the current regulation "hasn't gone far enough to protect customers."
He warned of broader implications: "If one company is able to get away with this, other providers could follow suit. The time has come for the regulator to banish mid-contract price rises for good."
