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Thursday, June 26, 2008

Price Cap news

Well, the Fair Trading Commission has announced its decision on rates for the next few years.
The apparent good news is that for ordinary residential telephone users there will be no increases until December 31st, 2009. From January 1, 2010 to March 31st, 2012 the rate can only be increased to a maxium of 4.5 per cent.
Sounds like good news?
For those residential folk who make long distance calls from their homes there will be an initial 20 per cent reduction on our rates to be implemented on or before August 1st this year.
More good news?
I have started this discussion because one of the purposes of this blog is to educate people or at least provide them with contrasting arguments so they can have a look at the various sides and take a stand.
For example, I contend that the seven per cent cumulative inceases over the past three years were unjustifiable in the frst place. There was no clear explanation from the FTC how it arrived at this decision.
It seemed like a figure was pulled from a rabbit's hat.
If we argued that the rates were unjustified in the first place, then do we argue that they are ok until December next year?
Or is it just possible that we should be arguing that rather than a freeze those unjustifiable rates should have been in fact reduced for the same period ending December 31st next year.
Are we citizens entited to a recovery on unjustified increases over which we had no chocie?

Hallam

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