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Bulk LPG - Cheapest suppliers / supply route?
Comments
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Hi Guys,
Update on my info.
Due to siting situation of my tank Jgas won't supply me, area manager told me to try and renegotiate with BP for a better deal. He was very helpful and I have used some of the info. He basically says that Jgas like to remain whiter than white when taking on new clients.
Anyway, despite historic problems with BP I called them to renegotiate my contract. I explained to them that I have been a loyal customer for 8 years and that although we had issues in the past I didn't want to lose the new found respect that I had for them with regards to them sorting out the issues that I had had with them previously. I advised how I had shopped around and that I had found suppliers that were 20ppl cheaper than the 62.95 price they were now asking for. After basically some !!! kissing on my behalf the guy offered a price of 49.9ppl. I told him how Jgas, who had been the dearest that I had phoned, but whom my neighbours used were offering 48ppl. I also told him that I didn't want the hassle of moving, that they had only recently fitted telemetry to my tank and that I envisioned my LPG usage getting greater due to a new extension to my property. With this info to hand I managed to renegotiate to 47.9ppl, a significant saving from the 62.95ppl that they had advised me of earlier in the week. The deal is fixed for 6mth and cannot increase by more than 2.5ppl for the following 6mths, therefore even if it did increase by the maximum, I still would be paying 55.4 by the end of my contract. At that point I shall look into an underground tank in order to satisfy future HSE requirements.
Cheers again
AliIf at first you don't succeed - destroy all evidence that you tried.0 -
Well done Ali. But just be aware of the probable caviat to your contract. You say that they can't increase by more than 2.5ppl after your initial period. But most contracts actually say, if we increase by more than ..... per litre, you have the option to get out of the contract and go elsewhere. That is different to them not being able to hike your price by more than the stated amount.0
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GrandadRob wrote: »Well done Ali. But just be aware of the probable caviat to your contract. You say that they can't increase by more than 2.5ppl after your initial period. But most contracts actually say, if we increase by more than ..... per litre, you have the option to get out of the contract and go elsewhere. That is different to them not being able to hike your price by more than the stated amount.
Very true, Yeah that is actually what they state. If they do that then It will defo be time for an underground tank.
Might not be a bad thing tbh, wife would quite like to have the tank hidden from the garden, just would prob end up going below our driveway and take up a sizeable chunk of it.
If at first you don't succeed - destroy all evidence that you tried.0 -
............It will defo be time for an underground tank
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Might not be a bad thing tbh, wife would quite like to have the tank hidden from the garden, just would prob end up going below our driveway and take up a sizeable chunk of it.
Take care! Some companies won't take on underground tanks if you try to switch. There are posts about this in this 'Bulk LPG ..' thread (try "Search this Thread" on the lower menu bar above). Underground tanks need testing every year to check the sacrificial anode is OK (maybe this needs replacing every year?). That's why the rent is higher - it's NOT just a job for the tanker driver casting an expert eye over the state of the nearby shrubbery (and not spotting overhead power lines - see an earlier post!) and twitching his nose for the smell of the pong added to the odourless LPG (at my last fill by BP the driver left a valve partially open!).
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called them...renegotiate...loyal customer...respect...suppliers that were 20ppl cheaper...!!! kissing...offering 48ppl...didn't want the hassle...LPG usage getting greater
...renegotiate to 47.9ppl...fixed for 6mth...2.5ppl for the following 6mths
:T Well Done, Alictait :T
An object lesson for all of us in negotiating a new contract, a huge improvement on what you were paying, and to be honest not a bad sounding deal all round. GrandadRob has already pointed out that the 2.5ppl/six months is only an option to quit if the price increases by more than that, but that is the lowest option-to-quit figure I've seen for quite some time (which might back up JGas suggestion that prices are about to come down), and you can always choose whether or not to exercise that option if you know prices are rising steeply across the board anyway!
As far as your and LittleVermin's comments with respect to underground tanks and the difficulty of switching, I know that ultimately, any supplier can choose not to offer supply and simply not give a reason, but it could equally be seen as a barrier to competition, resulting in an even more highly-concentrated market for some consumers. And the OFT/CC would probably be more than a little interested to hear from anyone who has first-hand experience of such switching difficulties.0 -
Thanks guys, Yeah considering the circumstances was the best I could have hoped for.
With regards to the underground tank, that fear had crossed my mind. I will look further into this before I do anything, however would I be happy giving Jgas my money after getting them to install an underground tank. Probably yes. I'd rather go independent where possible.
As for the option to quit figure, I already had that in writing from the letter they had sent me telling me they were uping the price, so I know it to be accurate.
Once again, thanks to the guys on here that help us with this, I can only imagine the time that you spend studying up on all these things.
I shall try to keep abreast of the thread and help out where possibleIf at first you don't succeed - destroy all evidence that you tried.0 -
My underground tank rental period contract (2 years ) runs out this month, and my local supplier has sent me a new 2 year contract to sign. Is there any guidance or accepted practise on how long a rental and supply period a supplier can insist on a contract?0
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My underground tank rental period contract (2 years ) runs out this month, and my local supplier has sent me a new 2 year contract to sign. Is there any guidance or accepted practise on how long a rental and supply period a supplier can insist on a contract?
The maximum length for a contract is now 2 years - see the OFT faqs ( 2010 revision) which refer to the Competition Commission Orders here :
The Orders limit the maximum time a supplier may restrict a customer from switching to another supplier to two years. In addition, a contract must not require a notice period to terminate that contract which is greater than 42 days. If you agreed to an exclusivity period of two years and you wanted to switch at the end of that time, then you could give the notice just before the two years is complete so your notice has effect at the end of the two years.
I see from a previous post you're in North Yorks, and you're with an independent. You could see which other companies would supply you - with your underground tank - and get some prices and conditions (rent, max rate of rise, break clause). Most suppliers will be listed when you put your postcode in http://www.uklpg.org/supplier-search/ but there'll also be local or national farmers' co-ops, etc (e.g. Mole Valley Farmers) and maybe even a local supplier not in the trade association UKLPG.
Extra Fuel's current monthly posted price (here) is 47.22ppl so that's probably a 'fair' price at present.
Many people keep on being supplied by the tank owner out of contract - but you would be unlikely to be able to get another supplier to fill it (unless there's a clause saying in an emergency and the owner was unable to fill ...). If you want to get the best price each time you need a fill you'll need to buy the tank off the current owner. But not all suppliers will fill tanks, especially underground tanks, not owned by them.
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Please keep us posted! Who is your supplier? What's your experience of them, please?0 -
Thanks for the reply, This is the termination paragraph in the agreement.
[FONT="]8. [/FONT][FONT="]TERMINATION[/FONT]
[FONT="]a. [/FONT][FONT="]This Agreement shall remain in force for the period specified in the Schedule hereto and will continue thereafter from year to year unless determined by at least 3 month's notice in writing by either party to the other to expire at any time.[/FONT]
They are not allowing 42 days notice?
Rental is £21 plus vat per Quarter. LPG currently at 0.46pence per litre plus vat
Supplier, Sensa OIl & Gas LTD
So far they have not been bad. Prices have followed trends up and down as market fluctuates.0 -
[FONT="]8. [/FONT][FONT="]TERMINATION[/FONT]
[FONT="]a. [/FONT][FONT="]This Agreement shall remain in force for the period specified in the Schedule hereto and will continue thereafter from year to year unless determined by at least 3 month's notice in writing by either party to the other to expire at any time.[/FONT]
They are not allowing 42 days notice?
Rental is £21 plus vat per Quarter. LPG currently at 0.46pence per litre plus vat
Supplier, Sensa OIl & Gas LTD
So far they have not been bad. Prices have followed trends up and down as market fluctuates.
It looks like this contract is not legal under the CC Orders. But if their prices have gone up AND DOWN then it may be worth sticking with it.
You might ask them why they want another 2 year contract since your current contract is automatically extended unless either party gives 3 months notice.
I've been told that in the past there were lots of independents but they got bought up by the majors - who controlled about 90% of the market when the Competition Commission started investigating, and then the CC made switching easier through the Orders. Currently the independents have about 13% (according to the recent OFT report), but we know that DCC has grown rapidly by acquisitions of heating oil suppliers - and it wouldn't surprise anyone if Flogas (owned by DCC) tried to do the same. We know that both Flogas and Calor have wholly owned subsidiaries still trading under their previous names. And I've been told by other independents that they have been made offers. Maybe Sensa, your supplier, might be gobbled up by one of the majors? In which case a rolling 'year on year' contract with a 3 month get-out clause might be rather good.
£21 a quarter for an underground tank is very good. Many are £30 (£15 for a surface tank).
Would you post the prices - and when they went up/down, please? Preferably when you were notified rather than when you had a fill .. so we (well, someone else!) can add the info to the plots he has.
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Sensa does not seem to be a member of UKLPG - it doesn't come up when I put Sensa's post code (near Malton) in UKLPG's supplier search which returned Flogas, Calor, Extra Fuel, LPG Home Heat, Discount Gas, Energas and BATA.
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