Bulk LPG - Cheapest suppliers / supply route?

Andrew1066

As promised the reply from Flogas and my subsequent response. - 

Good morning Mr 

 

Thank you for taking the time to put your concerns in writing, we sincerely apologise you have had cause to raise a concern on your account regarding the lack of customer service you have received and pricing. 

The contract agreed was fixed for 12 months at 33ppl+vat with the additional 5p cap in the 2ndyear, and can assure you that when applying increases we do carefully consider the impact on our customer and do everything possible to minimise this, we can confirm that the level of price increases is in line with your agreed contract. 

Over the past year, especially during the winter months all LPG suppliers had a limited supply of gas, this has resulting in us having to import gas from Europe to maintain a supply to all our customers which comes at a premium cost.  LPG rates are very volatile and although they may mirror the rise and fall of oil LPG is subject to its own varies and vagaries, with rates changing on a daily basis which means every time we buy LPG

we are paying a different rate,  in the 12 month period between December 2018 and December 2019 refinery costs increased by 6% along with a 14% increase in primary distribution costs alone, and as we are sure you are aware as a business nominal price changes are essential to continue offering great service. 

With regards to the lack of customer service we have provided feedback to the customer experience centre manager who will deal with the individuals concerned accordingly,  to ensure if a call back has been promised this must be followed up, even if they have not received an update they should advise customer and keep them informed.

We believe our explanation and apology to be fair and therefore, this email represents our final consideration of your complaint. LPG suppliers are not regulated by the Ombudsman, however, if you remain unhappy then please refer your complaint to the Consumer Dispute Resolution Ltd ( which a Government approved alternative dispute resolutions scheme), their details are as follows. 

Consumer Dispute Resolution Ltd. 
W: www.cdrl.org.uk

T: {Removed by Forum Team}
12-14 Walker Avenue,

Stratford Office Village,

Wolverton Mill

Milton Keynes

MK12 5TW

Kindest regards

{Name removed by Forum Team} 

MY RESPONSE - 

 Dear {Name removed by Forum Team} 

Thank you for your reply. 

Unfortunately I believe you may have been misinformed. 

When I spoke to your customer care representative Tom three months ago, he stated that the “gas was bought 12 months ahead” and on that basis it would have been purchased in May 2019, based on your annual report and accounts on a like for like accounting basis costs either remained the same or in some areas reduced. ( I believe the calls are recorded so you can verify his statement.)

Or was he being deceitful about this too? 

There were some additional costs relating to acquisitions and amortisation, but these are not base operating costs.   

This still doesn’t address the threats that “I am lucky, we could increase the price 12 pence per litre” which Is an out right lie. Please feel free to verify this in the telephone recording. 

Therefore, I don’t believe you have adequately addressed my complaint. 

I would ask that the tank therefore be filled at 33ppl rate. 

Thank you 

JerryW

"The contract agreed was fixed for 12 months at 33ppl+vat with the additional 5p cap in the 2ndyear"

.. and as I understand it, they have met that criterion? If so, I am not sure you have a case worth taking to any form of arbitration. All they have to do is prove their internal costs justify the increase, which is not hard to do given covid etc etc. Nothing in the contract about following wholesale prices down, is there?

Sympathy, but personally I would save my energies for an actual contract breach, of which there are plenty around ..

Andrew1066

Unfortunately, I think your right. 

Whilst their quarterly financial reporting and 18/19 accounts don’t evidence their costs increasing, It would take a huge amount effort to go through that process. 

JerryW

Andrew1066 said:

Unfortunately, I think your right. 

Whilst their quarterly financial reporting and 18/19 accounts don’t evidence their costs increasing, It would take a huge amount effort to go through that process. 

To be honest, the lpg market is so uncompetitive, and so bad, and the major players so uninterested in their customers, that if you are able to go through a 2 year contract with no more increase than the maximum the contract specifies, you have not done so badly.

Save your energies until two months before the contract expires and then do all you can to find a two year fix that is a reasonable price, or an independent supplier that still has principles.

In the meantime try to arrange your tank fills for minimum outlay. Nobody should ever sign up to monthly budget debits or to tank monitoring. That just hands the whole refill thing over to suppliers who will invariably (a) put the price up and only then (b) fill your tank brim full...

No_to_flogas

Hi all
I was with Flogas until 2012. Moved to Premier LPG that year after getting terrible customer service and nowhere with price negoiations. I have been doing a bit of research on prices via LPG save. There best offer is....wait for it, Flogas. 35p litre +5% VAT FIXED for 24 months, this is a "Special Term" that supersedes Clause 8.4.
My feeling is its to good to be true. Has anybody else managed to get a 24 month fixed term contract?

bobmac62

Back in March 2020 I was offered the same 35ppl + 5% VAT via LPG Save fixed for a 12 month period from the start of 2 year contract. Looking for a more advantageous quote, I accepted a quote via LPG  Solutions to be supplied by Avanti Gas at 30ppl +5% VAT, fixed for the first 12 months of the 2 year contract, commencing July 2020.

heather8

Hi

i haven’t been on here for a while.  I live in Yorkshire, can anyone recommend any local independent suppliers.  I’ve had two quotes so far one for 36pp litre for two years and their current variable is 31.6 pp litre.  Another quote for 37pp litre with a 4p cap in year 2, their current variable is 52pp litre😳

JerryW

No_to_flogas said:

Hi all
I was with Flogas until 2012. Moved to Premier LPG that year after getting terrible customer service and nowhere with price negoiations. I have been doing a bit of research on prices via LPG save. There best offer is....wait for it, Flogas. 35p litre +5% VAT FIXED for 24 months, this is a "Special Term" that supersedes Clause 8.4.
My feeling is its to good to be true. Has anybody else managed to get a 24 month fixed term contract?

Why would it be too good to be true? A contract is a contract and if that is truly what is agreed they will have to honour it, won't they?

There have been one or two other 2year fixes reported on here, yes ..

thozza

heather8 said:

Hi

i haven’t been on here for a while.  I live in Yorkshire, can anyone recommend any local independent suppliers.  I’ve had two quotes so far one for 36pp litre for two years and their current variable is 31.6 pp litre.  Another quote for 37pp litre with a 4p cap in year 2, their current variable is 52pp litre😳

We recently had to move again as Woldlink were no longer offering the (brilliant) deal they had been, so changed to Northern LPG in Harrogate, they were not the cheapest but didn't have any problems with the vegetation around our tank (unlike Avanti). The variable rate was 37ppl inc vat (they add vat to the price then refund it) last top up in April, not sure what it is today, but it tracks the wholesale price. We have been with Northern LPG previously and their customer service is excellent, they delivered gas in awful snow when other companies let people run out in our village.

Peanut777

Hi.  We are currently running on a 28 day contract with Carvers (based in Wolverhampton) and we are in Warwickshire.  We have been happy with their service and the fact we are not tied in to a 2 year contract and prices were reasonable.  We are now having a new boiler with oil tank so have informed Carvers of this and they tell me that if we were moving to another LPG supplier they would remove the tank with no charge, or transfer ownership to the new supplier   But due to the fact we will be purchasing oil instead of LPG means that we will be responsible for the costs for them to remove the tank. (approx £500).

Reading their contract I cannot find a specific point regarding this but it does say -
5.4  Upon termination of this agreement for any reason the customer shall forthwith cease to be in possession of the  equipment with the consent of the supplier and shall permit the supplier to enter the premises to remove the equipment at the customers expense unless a domestic customer  has switched to a new supplier using a supplier switch notice, in which case the customer will not be charged with any costs directly connected with uplifting the equipment.  The supplier shall allow the customer to retain possession of the equipment for a reasonable period not exceeding 1 month after the termination of the agreement to use up any residual LPG contained in the equipment.  no refund of installation charges or any residual LPG will be available on termination of this agreement.

Please can you advise us on this matter.  Many thanks