Consumers will be able to quit mobile phone and broadband contracts for free if their provider plans to increase their bills, under plans being brought to Cabinet.
Minister for Communications, Patrick O'Donovan, wants to give a legal right to consumers to exit contracts if providers propose to increase their monthly or annual charge during its term.
Many mobile and broadband providers deploy what are known as "in-contract price increase (ICPI) clauses", which allow them to raise the price a consumer pays for their services during the course of their contract.
It means most consumers are subject to at least one price increase over a contract term, but are unable to switch providers without incurring a financial penalty.
A recent survey of broadband customers by the regulator, ComReg, found that the majority do not know how an ICPI clause operates.
Under plans being brought to Cabinet by Minister O’Donovan, customers will be given a legal right to exit a contract if their provider proposes to increase their monthly or annual charge.
It is envisaged that a provider will have to give a minimum of 30 days notice to the consumer, prior to any price increase taking effect.
The cancellation could be secured without the customer being financially penalised for breaking the contract.
Meanwhile, Cabinet will also be asked today to approve a humanitarian flooding scheme for Wexford - by Minister for Enterprise, Tourism and Employment Peter Burke - to overcome damage caused by Storm Claudia.
It is expected that the scheme will be administered by the Irish Red Cross, which has the infrastructure and experience to get assistance delivered as quickly as possible for businesses, ahead of their busy Christmas period.
The scheme ensures that up to €20,000 is made available for businesses who have been impacted, but not able to get insurance due to previous flooding incidents.
Minister Burke has said there will be no delays in getting this funding issued as quickly as possible to impacted traders.
