Bulk LPG - Cheapest suppliers / supply route?

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  • Ace_gas_guzzler
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    Countrywide have come back to me already with a price of 48.3p per litre (inc VAT) with a 90 day cap.
  • Ace_gas_guzzler
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    Many thanks for that LittleVermin! I got a return call from Countrywide before I saw your message, but I'll now get in touch with the independents you listed to see what they can do. Could be interesting!!
  • The_Hornet
    The_Hornet Posts: 81 Forumite
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    Countrywide have come back to me already with a price of 48.3p per litre (inc VAT) with a 90 day cap.

    As I mentioned above I got offered 44.5ppl (46.75 inc VAT) yesterday for a new 2yr contract. Might be worth a bit more haggling.
  • Ace_gas_guzzler
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    The plot thickens! I've phoned round the suppliers that LittleVermin very kindly listed with the following results:

    (All prices plus VAT)

    Countrywide 46p (With a 90 day cap).
    Energas 45p guaranteed for 6 months.
    Mole Valley 46.9p (But if I pay £10 to join
    their club, I could be offered
    a better price).
    Callow 47p

    Lister, Carver and Extrafuel are to come back to me.

    Mentioned The Hornet's amazing deal but without result! Roughly where are you Hornet so I can try them again?

    As soon as I get the remaining offers I'll list them for everyone's benefit! On 6000 litres per year, even a 1p saving means £60 that can be spent on something else!:beer: for instance!
  • The_Hornet
    The_Hornet Posts: 81 Forumite
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    Mentioned The Hornet's amazing deal but without result! Roughly where are you Hornet so I can try them again?
    I'm in Herefordshire HR4 postcode.
  • Ace_gas_guzzler
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    Carver have come back to me with 42.55p per litre but a tank rental of £228 + 20% VAT per year. and a standard 5 year contract. It's going to be fun working out the overall prices from the different suppliers........
  • LittleVermin
    LittleVermin Posts: 737 Forumite
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    edited 28 April 2012 at 4:50PM
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    Carver have come back to me with 42.55p per litre but a tank rental of £228 + 20% VAT per year. and a standard 5 year contract. It's going to be fun working out the overall prices from the different suppliers........

    from Competition Commission's DOMESTIC BULK LIQUEFIED PETROLEUM GAS MARKET INVESTIGATION ORDER at http://www.competition-commission.org.uk/assets/competitioncommission/docs/pdf/inquiry/current/gas/lpg_order_final.pdf
    F. Customers
    15. Customer contracts
    15.1 A supplier shall ensure that in any contract for the supply of domestic bulk LPG, the notice period for the termination of the contract shall not exceed 42 calendar days, and the maximum length of any exclusivity period in the contract shall not exceed 24 months.
    ...so 2 years is the maximum exclusivity period for a domestic contract.

    The rental is the highest I've ever heard of. In 2010 GrandadRob posted that Carver's rental charge was £170 (here *) ... which is why I suggested you got the rental charge as well as the ppl! Different rental charges, Calor's "free gas" (sometimes spread over 2 years!), one supplier's "No VAT" (but it's only 5%), etc make comparisons very hard, as you've indicated!

    I query the VAT rate on the tank rental: I pay 5% (just checked!).

    Carver's price, like Extra Fuel's, Rose's, Lister's, etc goes up and down depending on the price they have to pay. Interestingly Carver's price on their website (here) right now is 51.1ppl but they also have this
    We publish a list price for gas and give you an agreed discount off the list price. Our list price is set at a competitive level often beating the net retail price of our competitors
    ..

    * you might like to add a 'thanks' to GrandadRob's post for taking the trouble to alert us to this sky high rent: every other supplier seems to quote £60-75 for above-ground and around £120 for underground (if they'll accept them on a proposed switch).
    ..
  • Ace_gas_guzzler
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    Many thanks for that LittleVermin! I'll check back with Carver just to make sure that I've got the right information - my tank rental with Countrywide is £12.50 per quarter plus, as you say, 5% VAT. Carver said that the five year contract was the exception in the industry, but if we could find someone who could deliver a fill at less than their quoted price, they would be quite happy for us to take that delivery without any penalty or additional charge. I'll call them back on Monday to query the five year contract but perhaps the exclusivity aspect is overridden by the fact that a cheaper supplier may be used in certain circumstances. It does occur to me though that I am unlikely to find a cheaper price from a supplier with whom I have no contract. Life used to be so simple when you only had the Gas Board to deal with!
  • LittleVermin
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    <snip> Carver said that the five year contract was the exception in the industry, <snip> I'll call them back on Monday to query the five year contract but perhaps the exclusivity aspect is .................. <snip>

    Two words, one TLA, one email address:

    1. Sharon Dias
    2. OFT
    3. [EMAIL="sharon.dias&#64;oft.gsi.gov.uk"]sharon.dias@oft.gsi.gov.uk[/EMAIL]
  • LittleVermin
    LittleVermin Posts: 737 Forumite
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    edited 29 April 2012 at 12:56PM
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    Carver have come back to me with ........ but a tank rental of ....... + 20% VAT per year. ..

    20% VAT - I think not!

    HMRC notice 701/19 on VAT on Fuel and Power dated August 2010

    http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000510&propertyType=document#P27_1604

    - so reduced rate of VAT on
    fuel and power for domestic use
    which includes
    • Installation by a supplier of liquefied petroleum gas of a bulk gas tank regarded as essential to the supply of liquefied petroleum gas.
    • ......
    • Rental of a bulk gas tank in conjunction with the supply of liquid petroleum gas to that tank.
    ...so even if you buy a tank (e.g. through Extra Fuel, I believe) you still qualify for the reduced rate of VAT (but not if the installation is subcontracted out and you pay the sub-contractor, it seems).

    The VAT rate for the actual LPG is also the reduced rate (currently 5%) but many (?most) people know that.

    It strikes me that Carver might not be too chuffed with a potential customer quoting clauses from the CC Order plus Revenue notices at them!

    It's sad that though there are possibly 170,000 households using LPG in the UK I estimate that only a couple of hundred, at most, are signed up to this forum, though more may look in.
    ..
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