Retail Price Index (RPI) and your Pay Monthly airtime tariff
Each year, your Pay Monthly airtime tariff will be adjusted according to the Retail Price Index (RPI) rate of inflation. This rate is announced in February and your bill will be adjusted by this amount in April.
RPI is a widely recognized measure of the general level of inflation and several industries use it as a guide on whether to adjust prices, as well as by how much. If you're on O2, RPI can impact your Pay Monthly tariff, including your O2 Refresh Airtime Plan (but not the Device Plan), your sim only tariff, standard tariff and mobile broadband tariff.
For Business customers, RPI can impact all eligible mobile voice monthly line rental charges, Business Essentials airtime plan (not device plan), SIM only tariffs, mobile broadband tariffs and Pop Up Office tariffs.
This year's RPI was published on 14 February and is 2.6%.
If you have joined or upgraded before 13 February 2017, we'll be sending you a message soon telling you about the adjustment and how it impacts your contract. If you joined or upgraded after this date, we'd have told you about it before you'd signed up.
From April onwards, as well as changes to your monthly airtime bill, we’ve also increased charges for calls outside your monthly allowance (not applicable to business customers). Charges for international calls and other additional services have also changed – unless you have a business tariff or mobile broadband tariff.
What you need to know about RPI
- RPI and your O2 contract
If you signed up before 23 January 2014
Our terms and conditions allow us to adjust your monthly subscription charge by no more than RPI, only once every 12 months. These terms are compliant with the body of general consumer protection law. Ofcom's guidance for price rises in fixed term contracts is only applicable to contracts made on or after the 23 January 2014 and does not apply to contracts that were entered into before that date.
Our advertising also said 'tariff prices may go up' since January 2013.
If you signed up after 23 January 2014
You would have been told when you signed up, that your monthly subscription charge is going to be adjusted by the RPI rate published each February and that the adjustment will appear on your April bill. This year the rate announced is 2.6%.
If you've got an O2 Refresh tariff or a Business Essentials tariff
If you're on O2 Refresh or business essentials, your Airtime Plan is subject to RPI, but your Device Plan is not. That's because your device is on a credit agreement, and not part of your monthly airtime subscription charge.
***For example, if you're on an £18 O2 Refresh Airtime Plan, the increase of 2.6% will result in a new monthly Airtime Plan cost of £18.46.***
Everybody else on Pay Monthly
***If you're on a sim only tariff, or one of our non-O2 Refresh Pay Monthly tariffs, RPI is applied to your monthly subscription charge (your tariff amount). For example, if you're on a £16 per month tariff, the increase of 2.6% will result in a new monthly subscription charge of £16.41.***
You'll see the adjustment on your April bill. You can work out the increase and your new tariff price with our RPI calculator.
- Ofcom's guidance
Ofcom's guidance for contracts formed or made on or after 23 January 2014 sets out their interpretation of General Condition 9.6 - this states that they think a mid-contract price rise is "a materially detrimental change to a customer's fixed term contract which should entitle them to terminate that contract without penalty."
However, that guidance does not apply to contracts made or signed before 23 January 2014. Ofcom has also said that a clear price rise in line with inflation which a customer is told about when they're signing up would not entitle them to terminate. Our contracts from 23 January 2014 are in line with this revised guidance. And our previous terms and conditions stated that we are entitled to increase your monthly subscription charge by no more than RPI and no more than once every 12 months. So you cannot end your contract mid-way through because of the RPI adjustment.
For more information read through Ofcom's updated guidance on material detriment in relation to price adjustments in fixed term contracts.
- Out of bundle calls and charges
From 1 April 2017 we'll be making changes to some out of bundle calls and additional charges. These changes do not apply to business tariffs at this time.
Before 1 April 17 From 1 April 17 UK Voice Call 05 numbers 45p per min 55p per min* * one minute minimum charges apply
Before 1 April 17 From 1 April 17 UK Voice Call 076 numbers 45p per min 55p per min* * one minute minimum charges apply
Before 1 April 17 From 1 April 17 07 non mobile & call forwarding numbers 45p per min 55p per min* * one minute minimum charges apply
Before 1 April 17 From 1 April 17 Calls to Jersey, Guernsey & Isle of Man 45p per min 55p per min* * one minute minimum charges apply
- Checking your bill
RPI adjustments appear in your April bill. To make sure that everything is as it should be, sign in to My O2 to review your account information.
Sign in to My O2 or My O2 Business.
Price change calculator
You'll find the RPI adjustment on your April 2017 bill. Or you can work it out any time with this handy calculator.
1. Select which tariff you are on
Choose from the two options below:
2. Enter the current monthly price
As an O2 Refresh or Business Essentials customer, only the price of your Airtime Plan is affected by RPI, not your monthly Device Plan repayment.
You'll find the old price of your Airtime Plan on any bill or statement with a date before 1 April 2017. Either log on to My O2 or check your paper bill, if you get one. Just make sure the price you enter doesn't include any discounts or Bolt Ons.
You'll find the current price of your mobile tariff on any bill or statement with a date before 1 April 2017. Either log on to My O2 or check your paper bill, if you get one. Just make sure the price you enter doesn't include any discounts or Bolt Ons.