Millions of broadband customers could be overcharged by as much as £100, experts said, after Ofcom relaxed the rules around how firms deal with contracts coming to an end.
Providers were supposed to start sending notifications to customers before their contracts were due to end earlier this year, enabling them to negotiate a better deal or switch to another, cheaper, firm.
Last week Ofcom, the telecoms watchdog, said that in light of the coronavirus pandemic it would not issue enforcement action against companies that did not notify customers.
Telegraph Money can reveal that some of the largest broadband providers, including Virgin Media and BT, are not currently sending notifications to customers.
The news comes as a fast and reliable broadband connection has become more important than ever with tens of millions of people working from home.
The situation is made worse by the fact that many households will find it difficult to switch as engineers are only being dispatched to homes for essential work. This is unlikely to include setting up a new connection for a customer.
Experts said that, although most new customers could be set up remotely, people often opt to have an engineer visit as they do not feel confident setting up the service themselves. Those living in new-build homes who want to connect to a different type of connection for the first time may be unable to switch, one expert said.
Alexander Fitzgerald, the founder of Cuckoo Internet, a broadband provider, said big broadband firms were “ripping us off again” at a time when they are more relied upon than ever.
He added: “Two million homes will face hidden price rises over the next 12 weeks. Check if you're out of contract because you could save more than £100 by switching.”
Ofcom’s statement said that activities like end of contract notifications might be contributing to call centre traffic “at a time when organisations need to prioritise calls from vulnerable people”. Some providers are experiencing staff shortages of up to 40pc, the regulator said.
The statement added: “While we are encouraging providers to send these notifications as normal, we will take a pragmatic approach to compliance with rules like this.”
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Virgin Media said it was in the process of pausing end of contract notifications but that customers could get in touch when their contract is ending to discuss their options.
The company operates on a separate network to most other providers but is continuing to send engineers to set up connections for new customers. The firm said much of the work can take place outside of the home and engineers will only enter if necessary.
BT said it had "temporarily paused" end of contract notifications to prioritise urgent work and the vulnerable. The firm is encouraging customers to deal with contract issues online if possibe.
A spokesman said: We apologise for any inconvenience caused as we continue to do everything we can to help keep the country connected at this time."
TalkTalk said it “plans” to send end of contract notifications but is reviewing the best way to do so in the current circumstances. Some new customers may have appointments postponed as engineers are unable to visit, except for essential work, but the company said most customers can be set up remotely.
A spokesman said: “We are freezing some bills and are not adding inflationary increases to standard packages, so that customers are not shocked by any sudden rises.”
Sky said that it is still issuing notifications and that the vast majority of customers are resolving any issues digitally. Its call centres have stopped dealing with new sales to prioritise vulnerable customers and any installations which require an engineer to visit have been postponed.
The firm is able to process installations where no visit is required and existing customers can change packages as normal.
Nicholas Baker, of Uswitch, the switching website, said: “Consumers who want to move their broadband service can still access a range of different providers, however in most cases will need to do so entirely online and without the requirement for an engineer to visit their home.
“It is right that providers are focusing their efforts to ensure vulnerable customers stay connected should there be any issue with their service.”
Internet providers have introduced a range of measures to support customers, including bill repayment holidays, the removal of caps on data allowances and additional measures to help those who are self isolating.
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