Automatic compensation of £8 a day is to be paid to millions of customers when their broadband fails, although this will not be implemented until early 2019.

This links in nicely to my blog here about broadband problems and your consumer rights.

Ofcom, the telecoms regulator, announced this as a result of continual and ongoing frustration with customers about poor service and high prices.

The tiered compensation will be;

  • £5 a day if a broadband provider fails to start a service when promised
  • £8 a day for loss of service
  • £25 if a broadband provider misses an appointment to carry out a repair

This new regime will cover BT, Sky, TalkTalk, Virgin Media and Zen Internet, which supply services to 90% of homes in the UK.

Ofcom expects payments to amount to about £142m a year, which is nine times more than what providers currently pay.

Apparently there are 5.7m cases of consumers experiencing a loss of their broadband or landline service every year, engineers failing to attend to about 250,000 appointments and 1 in 8 installations delayed.

Compensation is paid out in only 1 out of 7 cases just now and Ofcom have explained that the delay in implementing the scheme is to allow time for the providers to change their billing systems.

Ofcom will impose legal controls if providers fail to abide by the voluntary scheme (clearly not voluntary!).

What experiences have you had with your broadband provider? Would you recommend them?

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