Bulk LPG - Cheapest suppliers / supply route?

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  • Den2Mark
    Den2Mark Posts: 15 Forumite
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    To update my earlier post about the Countrywide price increase, they called back and after some discussion we agreed to split the difference, so I'm now paying 46ppl.

    Their view is that it is ancillary costs, not LPG itself, which has prompted this increase.

    I settled at this price because my 2yr contract will expire in late summer, so I have a round of haggling to look forward to with all our local suppliers.

    Thanks to everyone who posts on this forum: it is invaluable backup when it comes to negotiation.
  • HateLPG
    HateLPG Posts: 464 Forumite
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    I seem to remember reading somewhere if the the price went above 3/3.5 ppl we could change suppliers.
    Can anyone confirm this or was it just with one supplier?

    It varies from supplier-to-supplier, and also from contract-to-contract with a given supplier. For example, Calor in recent times have offered contracts with "get out" clauses set at rates of 3ppl every six months, 3.5ppl every six months and even 3.5ppl every three months, so you'll need to check your contract carefully.

    Also, not all suppliers include any such clause at present, Flogas being a notable and probably the most significant example. Previous Flogas contracts have been criticised by the OFT for failing to include such a clause, and this is an area that the OFT are (supposedly) looking to tighten up on. There has been a lot of discussion on these points in this thread over the past year to 18 months, so if you read back a few pages, I'm sure all your questions on this matter will be answered.
    A slightly different matter, has anyone thought about trying to raise a petition of 100,000 signatures via the e-petition scheme to start a debate about LPG capping or introducing a regulator in the House of Commons?
    Considering we have 4 million (mostly disgruntled) users it shouldn't be too difficult. We could start a simple website where LPG users register.
    Anybody interested?

    Nice idea. I am one of the eight who have already signed, so only another 99,992 to go! The problem is finding 100,000 users to sign it. I am going from memory here, but the figure of 4 million is the total number of Off Mains energy users in the UK. The majority of these use heating oil, with a small number using wood stoves or renewables. The number of domestic LPG users in the UK is closer to the 270,000 mark, of whom a signifiant proportion use bottled LPG. I seem to remember that the total number of bulk LPG users was recently quoted as being closer to 150,000, which in the grand scheme of things is a pretty minority voice.

    Anyway, no harm to be had in signing - and for those who wish to, the petition can be found here: http://epetitions.direct.gov.uk/petitions/14598

    As for moving LPG regulation further up the agenda, the recent OFT study into Off Mains Energy Supply did LPG users no favours at all (plenty on that subject posted in this thread too!); And persistent letter writing to MPs, the OFT and the Secretary of State seems to have no more significant affect than banging your head repeatedly against a (very thick) brick wall, partly because LPG users are such a small minority and partly because of political reluctance to do anything that would discourage any movement away from any non-renewable energy source. I really would like to see this moved up the political agenda but I'm really not entirely sure how this can be done.

    Make no mistake, there are a few good and honest guys out there, (i.e. some of the smaller independent suppliers), but the domestic LPG supply industry is self-regulated (via UKLPG) and by-and-large appears to me and to many other users to be dangerously out of control. Despite the Competition Commision Order of 2009 competition simply does not work effectively in this market, indeed, some would even argue that the CC Orders have, in hindsight, served to reduce competition and increase prices! (Incidentally, in repsect of pricing, I have also heard some pretty convincing arguments that for many lower-consumption bulk users, moving to 47kg cylinder supply could also work out significantly cheaper than continuing with bulk supply in the medium to long term).

    I fear that the bottom line is that, like it or not, every LPG user probably has to accept the the LPG market is likely to stay pretty much as it is for the forseeable future. So we have to take responsibility to educate ourselves, to understand our contracts, to ensure that we don't get taken for a ride over price increases, to insulate our homes like it's going out of fashion, and prepare to move to microgeneration and/or renewable heat sources as soon as practically and economically viable (i.e. when your LPG boiler reaches the end of its life, of not sooner). And look on the bright side - Calor, Flogas et. al. aren't going to look quite so smug or smart when nobody is buying their LPG anymore ;)
  • HateLPG
    HateLPG Posts: 464 Forumite
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    McSkint wrote: »
    I seem to be getting price increases of 3.5p/l every 6 months with Calor and I'm not too thrilled.

    I fear that seems to be pretty much standard Calor Operating Policy in my experience. However...
    McSkint wrote: »
    here's what I am paying in Fife, Scotland........
    Sept 2010 - 39.90p per litre
    March 2011 - 43.40p per litre
    Sept 2011 - 46.90p per litre

    ... which are actually not outrageous prices. Indeed, I would go so far as to say that since September 2010, you have probably been paying less than the majority of LPG users, although another increase of 3.5ppl in March would probably drop you at about a fair market price for an average user, assuming prices don't change hugely in the next month or so. Of course, you are a "high" user, not an average user, so your prices *should* always be at the lower end of the spectrum, but even so, you're certainly not being ripped-off big-time with those prices.

    As far as Calor coming in to replace some pipework is concerned, it would be interesting to find out whether they deem your existing tank installation (pre or post pipe upgrade) to be compliant with current standards. If you read back through this forum, this is now an issue that is coming up increasingly frequently and many suppliers seem to be turning a blind-eye to this to ensure that they retain the supply contract. I suspect they could be in potential hot-water if they do a pipe-upgrade and commision the new installation if it is not at that stage compliant. Knowing that it meets the current standards should also give you the peace of mind that you will freely be able to change supplier when your contract expires, or a very big stick to beat Calor with if it is not compliant at that time!
  • frankie
    frankie Posts: 845 Forumite
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    Thanks for the e-petition link Hate duly signed. Remember, what seems, way back when Voisin posted his manifesto on here that Martin Lewis was supposed to follow up? As I remember we achieved quite a few sign ups and was about the level where ML should have taken it up. Whatever happened to the Manifesto I wonder??
  • LittleVermin
    LittleVermin Posts: 737 Forumite
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    edited 1 February 2012 at 9:43PM
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    frankie wrote: »
    Thanks for the e-petition link Hate duly signed. Remember, what seems, way back when Voisin posted his manifesto on here that Martin Lewis was supposed to follow up? As I remember we achieved quite a few sign ups and was about the level where ML should have taken it up. Whatever happened to the Manifesto I wonder??

    http://forums.moneysavingexpert.com/showpost.php?p=39205254&postcount=477


    That's the link to vosin's post - with its 106 thanks so far. That's the most thanked (i.e. best supported) proposal for the 'MSE moneyfesto' (see here), I believe - so by now MSE should have included in their moneyfesto, I would have thought. But MSE say they have been very busy with lobbying about compulsory financial education in schools and reclaiming PPI.

    Please add your thanks - if you haven't: the thread is closed but you can still add 'thanks'. And we'll ask MSE again what they intend. Maybe we can get some of the 106 thankers to support the e-petition (which had 10 supporters just now! ... only 99,900 to go!) - here's the link again: http://epetitions.direct.gov.uk/petitions/14598

    PS Here's MSE Wendy last June (here): "I just wanted to let you know that we've not forgotten about the Moneyfesto."
    ..
  • Ace_gas_guzzler
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    No further call from Countrywide.......
  • HateLPG
    HateLPG Posts: 464 Forumite
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    No further call from Countrywide.......

    Why am I not surprised?

    This is LPG-land - if you want a deal, you've got to do all the homework and all the running. No supplier out there is going to offer you any sort of deal until they fully realise that you are serious and that you are not simply going to roll over and continue buying LPG from them as if nothing had happened!
  • dickiedoodah
    dickiedoodah Posts: 10 Forumite
    edited 2 February 2012 at 11:16AM
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    HateLPG wrote: »
    Why am I not surprised?

    This is LPG-land - if you want a deal, you've got to do all the homework and all the running. No supplier out there is going to offer you any sort of deal until they fully realise that you are serious and that you are not simply going to roll over and continue buying LPG from them as if nothing had happened!

    Great reply earlier Hatelpg - many Thanks.

    Re Countrywide had a call last night, The chap I spoke to humbly admitted that it wasn't the most brilliant idea of Countrywide to increase prices in the current climate as all others had done their dirty work before Christmas. For some reason Countrywide had held, maybe to see how the market played out.
    He emphasised the light and heavy users would get differing prices and also added that many LPG suppliers had over bought stocks because of last winter and this may hold off further rises until stocks have dropped. They have certainly noticed how customers have reacted especially in reducing their heating habits this together with large price increases is all effecting supply.
    He also said that customers could ring/write to Countrywide and they would be happy to negotiate where they could, (he had received a number of calls since the annoucement of the 3.5ppl rise)!

    The E-petition idea would require some heavy PR to succeed and I added another thread on this forum to promote, let's hope something comes of it! And of course as you say, there is a big difference between 4 million and 150,000!
  • HateLPG
    HateLPG Posts: 464 Forumite
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    Not unexpected, but it has been announced that BP are planning to divest their downstream LPG operations: http://www.lse.co.uk/FinanceNews.asp?ArticleCode=9ahbg7runr6wqkx&ArticleHeadline=Oil_giant_BP_to_sell_LPG_filling_assets

    I wonder who will be lining up to buy their UK/European business?

    Flogas have to be well positioned in respect of the UK operation as it is probably small enough for DCC/Flogas to afford, and they have already, I believe, co-located their operations at a number of sites.

    Worrying.
  • HateLPG
    HateLPG Posts: 464 Forumite
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    Lucky me!

    Received a letter earlier today from Avanti (ex Shell). Apparently:
    Over recent months the product price of LPG has continued on an upward trend, and whilst we have absorbed as many costs as possible an increase in our LPG price has become necessary.

    With immediate effect an increase of 2 pence per litre has been applied to your account.
    It's so nice to know that I haven't been forgotten. I wonder if this is an "across the board" rise, or is just being targeted at certain customers? Has anyone else had a similar letter recently?

    Or, hot on the heels of Countrywide's latest increase, is this just the second in the latest round of price rises?
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