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LPG gas savings - change in competition law
IanC_Derby
Posts: 1 Newbie
in Energy
We are not on mains gas and have an LPG tank which is filled up by a tanker delivery on request. The tank itself is owned by the gas supplier.
We recently rang our supplier to ask why the price of our LP gas supply had not gone down in line with general energy price decreases. Some interesting things transpired:
1) They immediately offered us a price reduction of 11%, provided we signed up to a 2 year supply agreement (previous price 47.5 pence per litre, new price 42.5 pence per litre). If we didn't sign up, they would still give us a reduced price of 44.5 pence (6% off).
2) We nearly signed up to this 2 year deal but then decided to shop around a bit first. A rival supplier said they could supply us for 38 pence per litre (a 20% reduction) but we would have to pay significant tank replacement charges, which made it unattractive to switch. However...
3) There is a change in legislation due early in 2009 which will mean that the consumer does not have to pay for the cost of removing the old tank (and reinstalling a new one) when he switches supplier. Instead, the new supplier buys the tank directly off the old supplier. (Don't know the exact source for this. - Maybe the Competition Commission?)
4) The rival supplier suggested we wait and come back to them after the change in legislation.
5) We went back to our original supplier with this information and they then offered us an immediate new price of 36.6 pence per litre (a 23% reduction), provided we signed up to a 2 year deal. Even if we didn't sign up, they would still give us a reduced price of 42.5 pence (11% off).
6) We needed a fill-up straight away and we signed the 23% deal. At an average cost of £500 every time we fill the tank, this is going to save us over £110 a time.
It makes you wonder how much profit the companies are creaming off due to consumer inertia. They would have offered us nothing if we hadn't asked...
- Go for it!
We recently rang our supplier to ask why the price of our LP gas supply had not gone down in line with general energy price decreases. Some interesting things transpired:
1) They immediately offered us a price reduction of 11%, provided we signed up to a 2 year supply agreement (previous price 47.5 pence per litre, new price 42.5 pence per litre). If we didn't sign up, they would still give us a reduced price of 44.5 pence (6% off).
2) We nearly signed up to this 2 year deal but then decided to shop around a bit first. A rival supplier said they could supply us for 38 pence per litre (a 20% reduction) but we would have to pay significant tank replacement charges, which made it unattractive to switch. However...
3) There is a change in legislation due early in 2009 which will mean that the consumer does not have to pay for the cost of removing the old tank (and reinstalling a new one) when he switches supplier. Instead, the new supplier buys the tank directly off the old supplier. (Don't know the exact source for this. - Maybe the Competition Commission?)
4) The rival supplier suggested we wait and come back to them after the change in legislation.
5) We went back to our original supplier with this information and they then offered us an immediate new price of 36.6 pence per litre (a 23% reduction), provided we signed up to a 2 year deal. Even if we didn't sign up, they would still give us a reduced price of 42.5 pence (11% off).
6) We needed a fill-up straight away and we signed the 23% deal. At an average cost of £500 every time we fill the tank, this is going to save us over £110 a time.
It makes you wonder how much profit the companies are creaming off due to consumer inertia. They would have offered us nothing if we hadn't asked...
- Go for it!
0
Comments
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See here for more info: http://www.uklpg.org/latestnews_one.php?id=30IT Consultant in the utilities industry specialising in the retail electricity market.
4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).0 -
If anyone else reads this, they should also search the forum before deciding to sign anything. Lots of info available on how to deal with the current situation.
Advice has been consistently not to sign a contract until after the new legislation is in force.0
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