Price Drop in LPG

HateLPG

For what it's worth, I recently received a letter from Calor stating that there WILL be a price reduction in April.

I'll believe it when I see it - and I bet they'll try arm-twisting to lock you into a new 2 year contract to get the best price just before the market opens up on 13th April!!!!

denise123

http://www.extrafuel.co.uk/index.php?type=press&article=5

on the top of the page it reads todays price is, 32.77p PL exc vat.

why do prices differ so much?

HateLPG

Read the rest of that page :-(

Says it all!!!

HateLPG

WhooooooooHoooooooooo :j:j:j

It's taken some persistence.......... but....... I have just received a very nice and apologetic letter from Calor................ Having got their legal bods to look over the contract, they have finally agreed that Clause 6.1 does INDEED apply for the 12 months following the expiry of any Special Entry Price, and have amended our account and future price accordingly

I knew there was a good reason to stay awake during those dull contract law tutorials at college

I would sugest that ANYONE on contract with Calor, no matter how long ago any entry price expired, would be well advised to get a calculator out, work out whether they were overcharged for the second year and if so, ask Calor for an account adjustment!!!

yardhawk194

I have been offered 39p ltr from flogas, my neighbour was offered 36p the week before - flogas say he uses more (true, but so what) can only suggest anyone in wales talks to countrywide who are talking about 35p, we'll see when the guy comes out next week - will see if next door are interested
have been looking since reading times money article month or so back
do google search of UKLPG for full list of companies - not all deliver to all areas
get together with people locally, form a group for better bargaining power
yardhawk194

Big_Nick_2

Originally with Calor and paying back in 2004 38ppl I've been with BP LPG for 5 years now and for the last 2 have been paying 31.95ppl. I got a letter yesterday informing me of a 40% increase to 44.95ppl.
I called their customer service department to complain but they are completely intransigent and will not budge so I asked to speak to the MD. They refused to transfer me so I've complained in writing asking for him to call me within the next 7 days, I'm not holding my breath.
I found out his name, home address and telephone number and I will call him at home as many times as it takes until I get some satisfaction.
The CC investigation has really done little to inject competition into this market. There are few producers and they hold the purse strings.

iwantasmallholding

OMG I am paying 47pence per ltr, and I use an excessive amount, about 6000 ltrs a year (old house) so I am paying 150pm to heat my house. If i could get it down to 30ppl as someone else on her is I would be soooooo much better off. is it easy to switch then?

Boolbar

I am currently with Calor Gas and I was looking at the contract that they would love me to sign (£100 incentive to stay with them).
However the section 6.2 is puzzling me,

6.2 The price of the Gas at the start of this Agreement is as shown in your personal details in your online renewal. We price our Gas and our service costs competitively and from time to time price changes will be necessary. In the event of a price rise at any time exceeding the rate of 3.5 pence per litre in any period of six months you have the right (by giving us 42 days’ written notice in accordance with clause 10.2 within 30 days after we have told you of the price rise) to terminate this Agreement. In the event of such termination you will pay the Tank uplift charge as set out in clause 8.3 in the circumstances referred to in clause 8.1.2 below, but you will not have to pay the higher price for Gas during the period of your notice, or any losses for breach referred to in clause 8.1.3 below.

Am I right in thinking that if they do decide to increase the price by more than 3.5p in a 6 month period (during the 2 year contract) and I decide to terminate the contract (and swap to another supplier) then I also have to pay the Tank Uplift charge ? It sounds a bit dodgy to me if that is the case. They could wait 6 months, increase the price massively, and give me the choice of either paying the new price or have the extra expense of the Tank Uplift charge and the hassle of changing supplier.

Note : Section 8.1.2 as follows:
8.1.2 Termination at or after the end of the Minimum Period:
This Agreement may be terminated by either of us giving the other 42 days’
written notice in the way described in clause 10.2 below to expire at or after
the end of the Minimum Period. Accordingly, if you wish to end this
Agreement at the end of the Minimum Period we should receive your
notification 42 days before that.
If you are terminating this Agreement but you are changing to another bulk
LPG supplier to your Address, you are eligible to do this on or after the end of
the Minimum Period, by giving notice as described above. In such event you
will not be liable for any Tank uplift charges under clause 8.3 below regardless
of whether the Tank(s) and Equipment remain at your Address and are
purchased by your new supplier, or we remove the Tank(s) and Equipment.
If you are not changing to another bulk LPG supplier to your Address you will
be responsible for the Tank uplift charges under clause 8.3 below.

paceinternet

Is the "minimum period" 2 years, or defined as some other length of time?
So, if you want to change suppliers before the end of the "minimum period", you will have to pay the uplift charge. After that period, you will not have to pay it.
In fact you may not be able to terminate within that "minimum period" unless the increases are as stated.

HateLPG

In reply to Boolbar:

No you haven't quite got that right. What you have to remember is that (for pretty obvious safety reasons) the tank is and remains the property of your supplier. Prior to the Competition Commission ruling of April 2009, if you changed supplier your EXISTING supplier would NEVER transfer ownership and so you would have to pay the uplift fee. The Competition Commission ruled that this was a major obstacle to competition (because the uplift fee would discourage users from switching suppliers), so they made a ruling that now COMPELS suppliers to transfer ownership of the tank when the customer switches. So, from April 2009, if you terminate your contract AND CHANGE TO ANOTHER SUPPLIER, your new supplier effectively "buys" the tank from your existing supplier and your existing supplier MAY NOT charge you an uplift fee.

If you simply terminate your contract, but WITHOUT signing up to a new supplier (ie you are scrapping LPG entirely) then you WOULD be liable for an uplift fee as the tank remains the property of your existing supplier.

To be honest, if I were able to scrap LPG for heating (not that there's any chance of this for me), I would seriously consider keeping the LPG tank anyway and use it JUST for cooking - LPG is great for cooking on (most of the top restaurants use it apparently), you'd be using naff all so one fill would last you probably more than a year and you'd avoid paying the uplift charge

Also (and this is important) read para 6.2 CAREFULLY:

"... In the event of a price rise at any time exceeding the rate of 3.5 pence per litre in any period of six months..."

This actually offers a fair degree of protection against massive price hikes (although 3.5ppl is pretty steep in itself). I've fought Calor on a similar Clause in my contract (and won after a bit of a battle) so you need to remember this one as long as you are signed up - it's effectively a ROLLING cap - once they have raised the price by 3.5ppl they cannot raise it again for a further 6 months FROM THE DATE OF THE INCREASE and if they DO, you are effectively released from your contract with them (provided that you inform them in writing etc etc). The 42 days seems a bit unreasonably long to me - if I ever got into a fight with them again over this, I would be inclined to take advice as to whether this is a fair contract term. My knowledge of contract law is limited, but I believe it to be the case that if ANY clause in a contract is deemed to be unfair, then the ENTIRE contract becomes null and void and unenforceable - I'm sure there will be a legal eagle on here who will put me right if I am wrong on that one ;-)