Given the current economic context and that forecast for 2024, which points to a situation of inflationary pressure and an increase in the cost of living, with an annual variation of 4.6% for the consumer price index forecast for 2023, ANACOM believes that there are important economic and social reasons that should be duly taken into account by companies in the sector. This Authority therefore recommends that any price increases, both in the tariffs available for new subscriptions and in existing contracts, be duly moderated in order to ensure effective access for end-users of these services.
In addition to keeping price increases under control, ANACOM is making a number of other recommendations to companies in the sector, as it did in 2022:
a) preventing the possibility of price increases from being used as a tool to induce consumers to accept new loyalty contracts, thereby jeopardising the competitive dynamics of the market and consumers;
b) not requiring the payment of charges in the event of early termination of the contract during the loyalty period by consumers who subscribe to a social tariff offer for broadband Internet access;
c) encouraging the conclusion of agreements for the payment of invoices in instalments in situations of difficulty or actual default on the part of the consumer, in order to avoid the suspension and subsequent termination of the contract, in accordance with the legislation in force; ANACOM also recommends that the agreed instalments should be affordable for the consumer, taking account of his/her particular situation, and that, where appropriate, late payments should be considered in order to enable the consumer to regain solvency and the ability to fulfil his/her contractual obligations;
d) providing for contractual reduction without penalty, particularly for end-users who prove to be in a vulnerable economic situation, even if they do not fall within the situations provided for by law as grounds for temporary suspension or termination of the contract;
e) providing a tariff advice service through multiple customer service channels, enabling end-users to obtain information on possible lower alternative prices or more advantageous and frugal offers, directing end-users to customer service channels specifically set up for this purpose, and adequately publicising the relevant contact details in a prominent place on companies’ websites, monthly service bills and other means of regular communication with end-users;
f) promoting the availability of offers with simpler configurations, focusing on essential features and excluding features or services not valued by consumers;
g) enhancing the attractiveness of isolated service offers (1P) and improving their promotion and visibility, both in digital communication channels and in physical stores where the company’s products are available.
These recommendations are made in a context where more than 40% of the population living in Portugal was at risk of poverty (2021 data) and the price level of electronic communications services in Portugal remains significantly high: in 2022, prices in Portugal were 21.1% above the European Union average.
The amount spent on communication per capita in Portugal has increased by more than 30% over the last seven years. In 2022, Portugal was one of the EU countries with the highest growth in this expenditure, which amounted to around EUR 370 per person, or around 2.3% of total final consumption expenditure.
The situation could be further aggravated by the fact that the subscription contracts of the three companies with the largest market share in the electronic communications sector include clauses for the annual updating of prices in line with the CPI.
The application of two consecutive price increases based on the CPI, given their extent - up to 7.8% in 2022 and an estimated 4.6% in 2023 - will have a significant impact on the budgets of families, especially those in a more vulnerable economic situation, especially in years of high inflation.
Consult:
- Recommendation aimed at mitigating the impact of the rising cost of living on access to electronic communications services https://www.anacom.pt/render.jsp?contentId=1773308
