Bulk LPG - Cheapest suppliers / supply route?

bobmac62

Confirmation that bulk LPG for February has increased to 30.59ppl + 5% VAT, an increase of 3ppl from January. This is for those on the rolling monthly pricing scheme, making it more expensive than those on the fixed 6 monthly scheme. I suspect that this will be short lived when the April pricing is announced for the latter customers. Better stock up soon!

Lumphammer1

I am on an ANSI tracker (Lister) and will be paying 39.83p if I now re-order - as I am down to under 10%. I am out of contract.

After reading recent comments on here, I have contacted Woldlink and have been told they offer 6 month reviews on the current 27.85p. No fixed periods, no cap. £150 free gas. Two year contract.

I think I will get a minimum order quality from existing supplier and then review once the 1st April review price is known and I can at least fix for 6 months that way. Us that a reasonable move?

Would I be right in saying that, as no fix or cap, that there is in theory no maximum amount that they could charge me in months 7-24 of the contract?

Thanks for the great info and advice on here.

mcmullank

Lumphammer1 wrote: »

I am on an ANSI tracker (Lister) and will be paying 39.83p if I now re-order - as I am down to under 10%. I am out of contract.

After reading recent comments on here, I have contacted Woldlink and have been told they offer 6 month reviews on the current 27.85p. No fixed periods, no cap. £150 free gas. Two year contract.

I think I will get a minimum order quality from existing supplier and then review once the 1st April review price is known and I can at least fix for 6 months that way. Us that a reasonable move?

Would I be right in saying that, as no fix or cap, that there is in theory no maximum amount that they could charge me in months 7-24 of the contract?

Thanks for the great info and advice on here.

Getting a fill from your current supplier to tide you over may be the sensible move although you have not indicated your annual consumption, tank size or minimum fill qty. All these have to be taken into account when deciding the best option. In terms of the Woldlink fix, you are correct that the price is in no way capped, however I don't think you will get any supplier to offer you a capped price. As has been shown in earlier posts, the supplier may say that they will limit the increases but in practise they will have T & Cs that allow them to go above any agreed increase. I have also heard on the grapevine that some of the national suppliers have been unilaterally cancelling contracts over pricing.

The_Hornet

I'm just over a year (15 months) into a 2 year contract with Countrywide which was fixed for 1 year at 30ppl. I just received this letter from them:

It is with sincere regret that I am writing to you to confirm an increase in the cost of LPG. The wholesale LPG market has risen by over 80% in the past twelve months, and despite every effort to reduce the impact of these increases to our customers, we are unable to absorb these market movements alone.

With immediate effect, your LPG rate will increase by 4.5 pence per litre.

I understand that increases in the cost of utilities is always unwelcome and I am sorry that this action is necessary. The LPG market has enjoyed a sustained period of stability in recent years, making the past twelve months of instability even more disappointing. Countrywide will continue to monitor the market closely and, as in recent years, will reduce prices when it is possible to do so.

Looking at the charts it would seem that they are correct in their price assertion so I guess I can't complain too much. As it happens I just got a fill at the old price and should be OK for just one more fill until the contract expires. It'll be interesting to see how prices go over the coming months.

longforgotten

Also had the letter from CWF, lpg UP BY 4.5ppl.

LittleVermin

chubbs85240 wrote: »

....

As I asked before, Does anyone know of a longer than 2 year fix option (3-5 years)

thanks

As mcmullank says, the maximum term for an enforceable bulk LPG contract is 2 years, after the Competition Commission ruling. But this is for a domestic contract and we've had at least one person posting that they have a longer contract - it seems because they lived in a residential development (converted barns) on a farm and came under the farm's contract.

Also Carver run, or used to, 5 year contracts but they apparently can do this because the contract is non-exclusive. If you can get a cheaper price quoted you are free to use it if they can't match it. But their tank rental is very high - several figues over £200 quoted on the forum for an above-ground tank when you'd normally expect to pay £50-75. The link here is to a quote of £239.40 +VAT (of 5%, corrected from original post) in 2012.

This is why people are recommended to get the rental cost for the tank as well as the price of the LPG. There is an element of rent in the LPG price.

For example, with a rental of £50 (5,000 p) for an average user of 2500l pa that's 2ppl for the tank. But say Carver quoted a rental of £200 (20,000 p) that's 8ppl for the tank...which is why it would be hard to get another supplier to undercut Carver's (apparently low) price. Carver post a price on their website - but give everyone a discount, they say. Can you feel the LPG fog rolling in?
..

Lumphammer1

Thanks mcmullank for your earlier reply. I ordered 500 litres which was the minimum delivery and I think we have a 1000 litre tank which should do us for a couple of months.

I contacted Woldlink today re their next fixed price and was told they had hoped to finalise it last week. So it could be any day now!?

Lumphammer1

With regard to firms who cap price rises bit with t & c which allow customers to exit the contract if the cap is broken...is this such a bad thing from a customers point of view??

mcmullank

Lumphammer1 wrote: »

With regard to firms who cap price rises bit with t & c which allow customers to exit the contract if the cap is broken...is this such a bad thing from a customers point of view??

It isn't that the ability to cancel the contract is a bad thing from the viewpoint of the customer, rather that it comes as a shock when the price is increased beyond what people thought was the "maximum" increase.

Also, you have to consider that your supplier is probably not the only one that is increasing the price and you have theoretically went from being certain of your maximum price to stepping into a market with rising prices and either having to accept the excessive increase or trying to negotiate better in the market.

Lumphammer1

And, I suppose, it forces the customer to be 'in contract' for another 2 years, when I like being out of contract to get leverage from my existing supplier. Although there are usually sweetners to move.