Broadband Nightmare: Plusnet Customer Left Waiting for £2,000 Refund After Nine-Month Delay
In a distressing consumer case, a reader named Kevin has been embroiled in a nine-month battle with Plusnet over a failed broadband upgrade, resulting in a compensation claim exceeding £2,000. The issue began in April 2025 when Kevin decided to switch from standard broadband to full fibre, with an activation date set for April 14, 2025. However, nearly a year later, the service remains unactivated, despite neighboring properties successfully receiving full fibre connections.
Financial Strain and Service Downgrade
During this prolonged delay, Kevin has faced significant financial hardship. Originally paying £28.99 per month under contract, he was forced onto out-of-contract pricing at £62.44 per month due to the activation failure. This surge in costs has left him out of pocket, with Plusnet acknowledging a debt of £1,709.76 for the missed activation date and an additional £275.12 for the out-of-contract refund, as of January 13, 2026.
Compounding the frustration, Kevin reported that Plusnet representatives discouraged him from leaving the provider, warning that switching to another supplier might lead to similar issues and potentially forfeit the promised compensation. This advice placed him in a state of limbo, unsure whether to stay with a subpar service or risk losing thousands in refunds.
Resolution and Compensation Under Ofcom's Scheme
Fortunately, the situation took a positive turn when Plusnet contacted Kevin directly, confirming a compensation payout of over £2,000. The company attributed the delay to their supplier, Openreach, underestimating the time required to deliver full fibre to his specific area. Although Kevin is still awaiting the cash transfer, he has since terminated his contract with Plusnet and opted for a 5G router with EE, which he claims provides comparable speeds to the promised full fibre service.
This case highlights the importance of consumer awareness regarding Ofcom's automatic compensation scheme, which facilitated the bulk of Kevin's payout. Introduced in April 2019, this voluntary initiative ensures that residential broadband and landline customers receive automatic refunds for service failures, such as delayed activations or repairs, without the need to chase providers.
Key Details of Ofcom's Automatic Compensation Scheme
Participating Providers: Most major UK telecoms companies have signed up, including BT, EE, Sky, TalkTalk, Plusnet, Virgin Media, Vodafone, Hyperoptic, Utility Warehouse, and Zen Internet. However, coverage can vary based on network specifics, so customers should verify with their provider.
Compensation Triggers: Payments are automatically issued for:
- Delayed repairs after a total loss of service, if not fixed within two full working days.
- Missed engineer appointments with less than 24 hours' notice.
- Delays to new service activations beyond the agreed start date.
Compensation Rates: Current standard amounts, adjusted for inflation, include £9.98 per day for ongoing service outages, £31.19 for missed appointments, and £6.24 per day for activation delays. Providers may impose caps, typically after 30 days of continuous payments, but must offer alternative services if compensation ceases.
Limitations and Consumer Advice
It is crucial to note that the scheme does not cover issues caused by customer equipment, internal wiring, or missed appointments by the user. Additionally, it applies only to residential fixed broadband and landline services, excluding mobile, pay-TV, or business contracts.
If compensation is not received as expected, consumers should first raise the issue with their provider, escalate through formal complaints processes, and, if unresolved, contact an Ofcom-approved alternative dispute resolution scheme. This case serves as a reminder for all broadband users to stay informed about their rights and leverage regulatory protections when faced with service failures.
