DUBLIN – The Cabinet has approved new legislation that will allow mobile phone and broadband consumers to exit their contracts for free if their service provider proposes to increase their bills during the contract term.
Minister for Communications Patrick O’Donovan championed the plans, stating the aim is to give consumers a legal right to terminate agreements without incurring financial penalties when providers activate ‘in-contract price increase (ICPI) clauses’.
Rebalancing the Scales for Consumers
Currently, many providers utilize ICPI clauses, subjecting consumers to at least one price hike during the contract term. Most customers are currently unable to switch providers upon a price change without paying a penalty. A recent ComReg survey found that most broadband customers do not understand how these ICPI clauses work.
Under the new law:
- Customers will be given a legal right to exit a contract if the provider proposes to increase the monthly or annual charge.
- This measure will force providers to give advance notice and a right of exit to consumers when certain clauses are used.
Minister O’Donovan stated: “The proposed legislation will help rebalance the scales in favour of consumers by providing more protection and certainty for them. It will force mobile and broadband providers to provide advance notice and a right of exit to consumers when certain clauses are used, thereby allowing consumers shop around for the offer that best suits their needs.”
Cabinet to Approve Humanitarian Flood Scheme for Wexford
In separate Cabinet business, Minister for Enterprise, Tourism and Employment Peter Burke is seeking approval today for a humanitarian flooding scheme aimed at assisting businesses in Wexford affected by the recent damage caused by Storm Claudia.
The key details of the scheme are:
- Targeted Aid: The scheme ensures that up to €20,000 is made available for businesses that have been impacted by the storm.
- Insurance Exception: It specifically targets businesses that were unable to secure insurance coverage due to previous flooding incidents.
- Administration: The scheme is expected to be administered by the Irish Red Cross, leveraging their infrastructure to deliver assistance quickly ahead of the critical Christmas period.
Minister Burke emphasized that there will be “no delays” in getting this funding issued as quickly as possible to impacted traders.
