As of June 1, Telekom A1 Hrvatska is increasing the monthly fees for its users by 6.9 percent based on the index clause and in accordance with the General Terms and Conditions and the average annual inflation rate for 2023, which are discussed below. wants to inform its users.
In the notification to the users, which the obligors sent 30 days before the start of application, A1 Croatia states that the average annual inflation rate for 2023 in Croatia was 8 percent and that the application of the index clause does not allow the termination of the contract without fees. The increase in fees refers to the full amount of monthly fees for tariffs, packages and options without calculated discounts, and more users continue to use the agreed discounts.
– Taking into account the significant increase in business costs, such as the construction and maintenance of fixed and mobile networks, the cost of purchasing equipment and devices, and the increase in energy prices, and with the aim of maintaining the quality of services, A1 Croatia made a business decision on the application of the index clause. Although the average annual inflation rate according to DZS in 2023 was 8 percent, A1 will increase the amount of monthly fees by 6.9 percent from June 1, according to Hina from that telecom.
They also say that the application of the index clause is common not only in the telecommunications industry, but also in the insurance, construction, space leasing and elsewhere, and that it is applied in the telecommunications industry in many EU countries.
In addition to users, telecom companies must also notify the regulator, HAKOM agency, about price changes at least 30 days in advance, which A1 has done, confirmed Hini from HAKOM.
Given that telecom companies, including A1 Croatia, introduced an index clause in their general business conditions in 2023, which, when applied to prices in the current year, must not be a percentage higher than the annual average inflation rate in country in the last year, due to this price increase, users do not have the possibility to terminate contracts without compensation. They were able to do this only in the first months of 2023, when for the first time in Croatia the possibility was introduced that telecom companies, following the inflation rate, could once a year apply an index clause to prices in accordance with that rate, and the same is true in the case of there is deflation.
In 2023, telekom A1 Hrvatska applied that clause of 8.5 percent from July 1 to increase the monthly fee for tariffs, packages and options, which was less than the official annual inflation rate for 2022, which was according to the State Institute of Statistics, it was 10.8 percent.
HT still without a decision for 2024.
When asked by Hina from HT on č Thursday, they answered that the decision on that application for 2024 has not yet been made. “The possibility of harmonizing the prices of services with the annual rate of inflation has been included in the General Terms and Conditions of HT. Accordingly, HT is authorized once a year to harmonize the prices of its services with the average annual rate of inflation for the previous year. The decision on the possible application of the adjustment in 2024 has not yet been made,” HT said.
That telecom applied the index clause in 2023 from October 1 by increasing the prices of monthly fees by 5 percent.
Telemacho Hrvatska did not receive an answer to the same question on Thursday until the publication of the text, and last year they also used this legal opportunity to apply the index clause, increasing the prices of monthly fees for tariff packages by 8.3 percent. from August 1.