O2 screws Ofcom with contract price-rise loophole, increases charges by 2.7%

It was last week that Ofcom made it illegal for British mobile phone companies to increase charges midway through customers contracts. And it seemed like good news for consumers. If there is a price rise, customers can cancel their contracts without paying a penalty.

But within hours, second-biggest operator O2 announced changes to its contract terms and conditions. New customers will now have to agree to a compulsory annual rise in line with the Retail Price Index.

And existing O2 customers, who signed up before the new Ofcom ruling, are facing a 2.7% increase - probably in March - with no way of cancelling their contract without penalty.

O2 has screwed Ofcom.