If ISP's where forced to compensate for downtime, then the prices would have to go up ....
I'm not naive enough not to understand that what you say is the way of the world and all that, but it still *really* winds me up whenever I see the old "Ah, but, if we offered service guarantees and compensation then we would have to put prices up" line trotted out !!!
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If only all things in life were so simple

and BTW, intended more for amusement rather than a rant and certainly not intended as a broadside to PN in particular - it is equally applicable to just about any and every company I (and no doubt most other people) have ever dealt with ! Any problem is always someone else's fault and we're very, very sorry and it won't happen again ... but, yes, of course we're still going to charge you the full amount despite the problems and all the inconvenience or cost to you !
I just wish to point out that I have nothing to do with PlusNet or PUG (other than being a F9 customer and occasionally posting here on PUG forums) and therefore my previous comments and opinions are my own, not theirs! Therefore it was ME trotting out those lines that really wind you up... not PN. I'm sure you knew that, but just making sure!
Anyway, for what it is worth, I know what you are saying, and I agree with you. Unfortunately, as well as being an optimist, I am also a realist (it is sometimes helpful, but often a frustrating viewpoint to hold!). The problem is the current market place. It has been price driven for a while, which means that corners get cut, in an attempt to cut costs, to cut the retail price, to grab a market share, and make a better profit etc.
When this happens, then the mistakes start and service levels drop. This is what we have seen from PlusNet in this last year (although the cuts probably happened in the previous year!). Last year and this year appear to have been a genuine attempt to turn things around and get things back in order (from my observations), but the current shortage of PHP coders can't be helping!
However they are certainly still reaping the "rewards" of their previous bad decisions 2 years ago (again just my opinion) and despite trying to get back on track, still have a way to go yet.
So Compensation....
Who can offer compensation for BT Wholesale's mistakes without putting prices up? PN can't improve BT wholesale's shoddy services more than any other ISP can. And if they received preferential treatment (through BT retail ownership) compared to other ISP's then OFCOM would come down on them pronto.
Their own mistakes... - yes they could start to offer compensation for their own mistakes, and hope that it provided an incentive to make sure the mistakes didn't happen in the first place. However, the investment in man-power to improve the service might price them out of the market. There is a delicate balance here. It is hard enough to compete with "free" broadband ISPs at current pricing without deciding you are going to take on even more staff to mitigate ALL future problems. Either way it has to cost more.... either to provide that premium service, or to pay for not achieving that service!
If you want that sort of service it costs money. And surely that would be the point of a price increase, not to pay it all out in compensation, but to be paying it to get a better service than others are paying for.
I'm not saying we should be content with last year's service (or even this year's) from PlusNet. They need more prodding yet, to get back to providing the level and quality of service that they have potential to provide. I'm sure with the right pressure from us the customers, and hopefully PUG interaction too, they will make that transition back to being a solid dependable ISP, and that is why I have stayed with them through the storm (time will tell if that was a waste of time!)
There is a place in the marketplace for that kind of a premium service and some people would pay for it happily for a definite SLA (Service Level Agreement) with compensation on failure to meet those standards. Interestingly enough, just 15mins ago I filled in a PC Pro survey asking about ISPs and one of the questions was "would you be interested in a ISP with a strict SLA and compensation?". Another question also asked, "would you be willing to pay £50 more a year for better customer service?". I got the impression that the survey was linked to Thus/Demon Internet (although that might be wrong), so I suspect that they are looking at the current market place and trying to find a niche to slot into, but seeking customer opinion first.
I think the bottom line here is that we (the customers with PUG's help!) need to help prod PN into shape, so that this ship can sail without leaking (deliberate terminology chosen!), before anyone at PN towers considers offering a SLA or compensation deal. Once on an even keel, maybe it will be right time in the market to offer that sort of service from PN, but we need to be realistic at the moment and recognise, that even if everything was sorted today for ongoing improvements, that we would still reap problems from last two years for another 6 months or so, as it takes time to turn a moving ship around!
For what it is worth, I am optimistic about PlusNet's future or I would have jumped ship by now!