TESCO Mobile is to make a major change to charges that could see customers pay more.
The supermarket said that it will scrap its fixed price promise for some customers on pay monthly and sim-only contracts.
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The move means that some of Tesco‘s 5million customers will soon see their bills hiked mid-contract.
The supermarket previously pledged never to up customer bills mid-contract under its fixed price guarantee.
But, from March 27 anybody taking out a new contract will no longer be protected from these price hikes.
It’s important to note that some customers will be able to avoid the change.
To soften the blow, Tesco Mobile is launching fixed price tariffs exclusively for Clubcard holders.
This means that Clubcard holders can continue to avoid any mid-contract price prices.
Tesco is yet to confirm the exact mechanism it’ll use to calculate any mid-contract price rises – but we’ll update the story once we know.
Existing customers who are within their contract term will continue to benefit from frozen prices for the length of their current contract.
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The move won’t affect those who are out of contract.
A Tesco Mobile spokesperson said: “At Tesco Mobile, we’re committed to offering our customers great value.
“That’s why we’re freezing prices for the length of a customer’s contract through Clubcard Prices.
“As well as having the reassurance that their bill won’t go up mid-contract, customers who choose a Clubcard Price deal will also receive all the other brilliant benefits a Tesco Clubcard provides.
“This includes exclusive savings on products, money off grocery and fuel bills, and vouchers to use with over 100 Reward Partners.”
It comes as other mobile networks announce their mid-contract price rises.
Telecom providers usually increase their prices annually based on the rate of inflation plus an extra 3.9%.
Virgin Mobile and O2 use January’s retail price index of inflation plus 3.9% to determine its mid-contract price rises.
And with January’s retail price index at 13.4% it means millions will see their airtime bills increase by 17.3%.
Three confirmed its 14.4% price rise will impact all new and upgrading customers from March 31.
Ofcom has recently launched an investigation into the way these firms deal with mid-contract price rises.
We have a full list of firms hiking their contract prices within weeks.
It comes only weeks after the mobile network confirmed that it will also scrap free data roaming in Europe.
The change to the provider’s Home from Home policy was originally set to come into force on January 1, 2023.
But Tesco told The Sun that the charges will now come into force from May 2023.
This means that customers have a couple of months left to enjoy free data roaming in 48 European and worldwide countries.
From May, customers will be charged an extra fee if they opt to use their data abroad.
But, Tesco is yet to confirm the rate of this fee.
How can I cut my mobile bill?
If you think your bills are too high and want to drive them down, the first thing to do is find out what the cheapest deal on the market is.
You can use this rate as a bargaining tool to get a better offer from your provider.
Get in contact with your provider to see if they can match this rate – if not, you might want to switch instead.
If you’re mid-contract though and wish to leave, bear in mind that you could face an exit fee so check with your provider for any charges.
Plus, it could be harder haggling with these prices as they come most years from all providers.
And if you’re out of contract, switching when yours is up is the single best way to save money on your telecom bills.
In the weeks before your contract is up, use comparison sites to familiarise yourself with what deals are available.
It’s a known fact that new customers always get the best deals.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, speed and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
If your household is on a low income it’s also worth investigating social tariffs.
These broadband packages and discounts have been created for people who are receiving certain benefits.
They’re often available to those on income support, Universal Credit, or disability allowance.
