once your year is up then you can cancel, but if you dont, then youre automatically signed up for yet another year
I don't like it either but from what I've read they are supposed to contact you to find out whether or not you want to renew, so it's not totally automatic.
When (if) they do that I will just ask them to put all the terms in writing including the benefits and downsides (including cancellation charges) and see what happens....
If I read the terms correctly, having been a customer for some time, the most they could realistically ask me for as a cancellation charge would (should) be £8. I certainly wouldn't pay any more.
PS I'm on "paperfree" billing and got an email yesterday about the changes.
Edit. This is what the BT web site says about the 12-month contract (if you choose to take it and save about £1 per month):
12 month renewable contract. This means you have a 12 month minimum renewable period. So, after 12 months, your contract will be automatically renewed for another 12 month minimum renewable period unless you tell us otherwise. We'll write to remind you when your contract is nearing the end of a renewable period.