Shell Energy to hit 112,000 broadband and home phone customers with up to £36 a year price hike

The price increase kicks in from 10 January 2021 and will apply to customers who signed up prior to 2 September 2020. The hike affects 112,000 households, with most of these broadband users, although some customers will be hit with both the call plan and broadband rise, while Shell Energy says a small proportion will be phone only users. Here's what's happening: 

• Broadband monthly rental will increase by £2 a month

• Call plans will increase by £1 a month

• Call connection charges will increase by 3p a call from 20p to 23p.

• Call rates to UK landlines, UK mobiles and service numbers will increase by 2p a minute to 15p a minute

But there is some good news as around 42,000 customers on copper cables will receive a free upgrade to fibre where available, which should mean faster broadband speeds. Those who signed up after 2 September aren't affected as they're already on the new price plans. Customers who are out of contract also won't see any price increases. 

See our Cheap Broadband guide for help finding the best deal. 

Will MoneySavingExpert.com users be impacted?

Earlier in the year, MoneySavingExpert.com secured a blagged deal for Shell broadband customers. But while it promised no inflation-linked contract increases, this rise is separate so you will be affected. However, as we outline below, you can escape your contract penalty-free as a result.  

How to beat the hike – you can haggle or ditch and switch

If you aren't happy with the price rise, the good news is you can leave penalty-free as long as you contact Shell Energy within 30 days of receiving your price notification. You won't be hit with early exit fees or with Shell's so-called "cease" charge. You can contact its customer service team on 0330 094 5800.

However, remember that most firms regularly increase prices, so leaving may not be the best option. If you're on a good deal, you may want to stick with it regardless – don't jump out of the frying pan into the fire. That said, there are cheap deals out there right now - we round-up the best offers in our Broadband guide. 

If you are happy to stick with Shell Energy, this is a golden opportunity to haggle yourself an improved deal – especially as you have the right to leave penalty-free, which is great haggling ammunition. See our Haggle with service providers guide for full info.

What does Shell Energy say?

Jeremy Woodrow, director of telecoms at Shell Energy said: "In recognition of the increased reliance on broadband as a result of the pandemic, we’re giving a free fibre upgrade to all customers on copper, where available.

"This will help offset the fact that while our prices haven’t increased in the last three years, inflation and the growth in network usage means we do now have to make a small increase to our charges."