A1 Croatska Announces 6.9% Increase in Monthly Fees, Applies Index Clause in accordance with General Terms and Conditions”.

Telekom A1 Croatska has announced that they will be increasing their monthly fees for users by 6.9 percent starting from June 1st, 2023. This hike is based on the index clause in accordance with the General Terms and Conditions and the average annual inflation rate for 2023.

A1 Croatia sent notifications to users 30 days before the implementation of the increase, stating that the average annual inflation rate in Croatia for 2023 was 8 percent. Despite this, A1 decided to increase fees by a higher margin of 6.9 percent due to rising costs of business operations including network infrastructure, equipment purchases, and energy prices.

The index clause is a common practice in various industries including telecommunications and is also used in many EU countries. In accordance with regulations, A1 notified the regulator HAKOM agency about the price changes at least 30 days in advance. Users are informed that they do not have the option to terminate their contracts without compensation due to the application of the index clause.

In July 2023, A1 applied an increase of only 8.5% in fees which was lower than the official inflation rate for the previous year while other telecom companies like HT and Tele2 also utilized similar practices to adjust their prices accordingly. The decision on applying the index clause for next year has yet to be made by these companies as they continue to monitor market conditions closely.

Users are advised to familiarize themselves with their service providers’ terms and conditions to understand how such clauses affect their contracts.

It is important for consumers to understand how pricing policies work so that they can make informed decisions about their services providers