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Bulk LPG - Cheapest suppliers / supply route?

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  • LittleVermin
    LittleVermin Posts: 737 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 22 February 2012 at 8:56PM
    Mister_G wrote: »
    North-West Hampshire yesterday 1000litres at 45ppl from local independent HBS and they do not charge tank rental or require a contract.

    It's a pity that though HBS has grown it only supplies around Andover! HBS website here.

    You mentioned (here) HBS's price last August was 45ppl - so no change.

    If you used the average figure of 2,500l p.a. you'll pay £1125 at 45ppl. But for someone paying £60 p.a. rental that total would be £1185 ...which works out at a total cost per litre of 47.4p. It's probably more useful for forum readers to assume a notional cost of £60 p.a. for your tank, for comparison, and then your LPG costs 42.6ppl. - not bad!

    (Yes, you've posted - here - that you use 3,500 - 4,000 litres p.a. so the saving per litre is not so great - notionally at 43.3ppl for 3,500l p.a.).

    If you look at the ANSI graph here then HBS would have been justified in putting up the price to match the steep wholesale increase this month - but probably they hope the wholesale price will drop back again before they have to refill the tanks at their depot. We know that several other suppliers (Countrywide, Avanti, ..) have put up their prices - and I guess these larger suppliers have far more storage so can risk waiting for the present prices to drop back. (Iran's refusal to supply its crude to some EU countries, even before EU sanctions start, wouldn't seem to be likely to help their damaged economy - unless the Chinese have promised to take all the slack.)
    ..
  • safara wrote: »
    We had no idea what the previous LPG supplier or usage was. But following some phonecalls we find out that the tank is currently owned by Flogas.

    We are obviously out of contract, so free to start a contract with whomever we like etc.

    There are 4 suppliers in our area, according to UKLPG.org

    I have contacted them all and have the following rates they offer. All are for the mandatory 2 years. We are in North Wales.

    Flogas (current owners of the tank)
    Standing Charge - £60 / Year
    Price per l - 45p (set for 6 months)

    Calor Gas
    Standing Charge - £60 / Year
    Price per l - 45.4p (set for 9 months)
    £150 of free gas for switching to them

    AvantiGas
    Standing Charge - £60 / Year
    Price per l - 42.5p (set for 6 months)
    If price goes up more than 5ppl in 6 month period, free to change contract.

    Cambrian Gas
    Standing Charge - £40 / Year
    Price per l - 49.5p

    What would be your thoughts. I would imagine Cambrian is out of the picture.

    With Flogas, would not have to change supplier etc. Are the rates/deal with either Flogas or Calor worth swapping from Flogas?

    Cheers for any thoughts :)

    Hi safara - and welcome to the forum.

    Good luck with turning the ex-pub into a home!

    Firstly, switching is now easy - and should take a maximum of 28 days if the new supplier chooses to buy the tank (at a price calculated from the published Competition Commission formula) otherwise 42 days if you get a 'new' tank (it may be refurb'ed).

    If you assume an annual usage of, say, 3000l you can calculate the costs of the deals - making allowance for Calor's £150 'free gas' (that's probably spread over 2 years. BTW the 2 yr exclusivity is not mandatory: CC made it the maximum a domestic supply contract can run, but sometimes contracts are shorter for rental properties (there've been one or two mentioned on this thread).

    It would be good to get Calor to offer a maximum rate of rise. Flogas never do. Mind you, Calor have told people to walk when they've complained about rises in excess of the maximum (you'll need to check your contract VERY carefully to see if they have a clause about charging you a million squid for uplift of the tank if you do end the contract early).

    In fact, I'd get EACH company to send you a draft contract before you decide. Then you might wish to post any iffy clauses on the forum!
  • safara wrote: »

    Flogas (current owners of the tank)
    Standing Charge - £60 / Year
    Price per l - 45p (set for 6 months)

    Calor Gas
    Standing Charge - £60 / Year
    Price per l - 45.4p (set for 9 months)
    £150 of free gas for switching to them

    AvantiGas
    Standing Charge - £60 / Year
    Price per l - 42.5p (set for 6 months)
    If price goes up more than 5ppl in 6 month period, free to change contract.

    Cambrian Gas
    Standing Charge - £40 / Year
    Price per l - 49.5p

    What would be your thoughts. I would imagine Cambrian is out of the picture.

    With Flogas, would not have to change supplier etc. Are the rates/deal with either Avanti or Calor worth swapping from Flogas? Postcode is LL32

    Cheers for any thoughts :)

    Hi Safara
    We're in North Wales too & just moved into a property with a new LPG tank owned by Calor.
    Do you know how much rental the other companies would be charging for the tank? I presume this is different to the standing charge?
    Thanks
  • safara
    safara Posts: 76 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    CaroleP wrote: »
    Hi Safara
    We're in North Wales too & just moved into a property with a new LPG tank owned by Calor.
    Do you know how much rental the other companies would be charging for the tank? I presume this is different to the standing charge?
    Thanks

    Hi CaroleP :)

    Ummm, I think they are the same thing. They have mentioned rental/standing charge in the same vein ...... Not had any of the 4 quoting 2 charges, one for rental and one for standing...

    Something I need to check?
  • CaroleP wrote: »
    Hi Safara
    We're in North Wales too & just moved into a property with a new LPG tank owned by Calor.
    Do you know how much rental the other companies would be charging for the tank? I presume this is different to the standing charge?
    Thanks

    Hi CaroleP,

    Welcome to the forum!

    standing charge = rental.

    I guess some companies are using "standing charge" to make it sound more like the usual utilities.

    What prices are you being offered? It would be good to compare with safara's! How much did the previous owner use?
  • LittleVermin
    LittleVermin Posts: 737 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 22 February 2012 at 9:36PM
    Hi CaroleP and safara,

    You may be able to get a good deal by buying LPG through a farmers' co-op.

    Mole Valley Farmers - based in the SW - operates nationally on-line and if you become a member (a tenner a year, I believe) you can access their fuel deals. Maybe worth an email/phone call. Website here. You do not have to be a farmer!

    There may be a local farmers' co-op in North Wales. Probably is!

    Another option for you might be trying to set up your own buying consortium! Easier for oil than LPG, I agree, but at least one user (mbday) has posted about their consortium (here - you might add your thanks for telling us that it IS possible!).
  • safara
    safara Posts: 76 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Super LittleVermin - will do some research into the consortium's route.

    But in the mean-time, I need some LPG, and not sure I can sort out a consortium in time before it runs out ;)

    Looking like I will stay with Flogas for the moment, while seeing what I can organise for when the contract comes up for renewal.

    Unless it is better to do this another way...
  • safara wrote: »
    <snip>

    Looking like I will stay with Flogas for the moment,

    <snip>

    Hmmm! You might like to put "Flogas" into "Search this Thread".

    But of course if you're running low you may need to sign up for 2 years - or use electric heaters, etc until you've a new supplier. Flogas is unlikely to agree to fill without a contract.
  • safara
    safara Posts: 76 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Hmmm! You might like to put "Flogas" into "Search this Thread".

    But of course if you're running low you may need to sign up for 2 years - or use electric heaters, etc until you've a new supplier. Flogas is unlikely to agree to fill without a contract.

    Indeed - my present thoughts are to lump it with Flogas for the initial 2 years, while exploring other options for subsequent and following years. As time is against me on this one.

    Unless it is worth making the hop to Calor or Avanti now, and waiting a further couple of weeks to get some gas while the change of gas tank ownership takes place...
  • safara wrote: »
    Indeed - my present thoughts are to lump it with Flogas for the initial 2 years, <snip>.

    If you went the Mole Valley route you'd actually sign a contract with Flo but pay MVF rates. Maybe the contract in your area and with your local farmers' co-op might be with a different supplier.

    In the past going with Mole Valley has meant a substantial discount - see here.
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