Ofcom proposes to curb unfair bill charges

Following uSwitch.com’s report that consumers are losing £237 million a year in additional charges on their phone bill, Ofcom has announced proposals to rein in charges being levied by communications providers on customers’ bills.

Steve Weller, communications expert at independent price comparison and switching service, uSwitch.com, comments: “We welcome Ofcom’s announcement today that it will investigate the additional charges placed onto customers’ bills by their providers.

“Regardless of whether bills are paid on time, BT charges an £18 a year fee for customers paying by cash, cheque or card instead of direct debit and Virgin Media charges a staggering £60 a year per customer. In total, 3.4 million phone customers are currently being stung like this to the tune of £75 million a year.

“However, it’s also important that Ofcom addresses the charges imposed on customers for receiving paper rather than electronic bills. The 13 million customers who receive paper phone bills are paying £162 million for the privilege. While there may be environmental benefits to receiving bills via email, this has to be about consumer choice too. Only half of the UK has broadband at home and so rely on receiving their bills by post.”

Weller concludes: “It will be very interesting to see whether the additional charges are in any way proportionate to the costs incurred by the companies.”