Can LPG supplier add surcharge on fixed price contract?

PJ9506
PJ9506 Posts: 13 Forumite
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We signed a new (continuing) contract at the end of last summer to retain our price of LPG with our supplier at 42ppl. 

In October we received a letter saying we need to pay 10ppl surcharge due to the rising cost of fuel.  Can our supplier do this?

We are tied to the one supplier unfortunately due to where our tank was put when installed (it now doesn't conform to safety regs apparently but retains "grandfather rights") so it's not as simple for us to just switch... Switching supplier isn't an option but I can't see that what they are doing is legal... Or is it? 

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    What does your contract say? If your supplier is forced to sell at a considerable loss then you might not have a supplier much longer. 
  • PJ9506
    PJ9506 Posts: 13 Forumite
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    What does your contract say? If your supplier is forced to sell at a considerable loss then you might not have a supplier much longer. 
    It's just a basic 1 page agreement with our details, signatures and current price which says "42p fixed for 12 months max rise of 10% in year 2".  
  • Glad
    Glad Posts: 18,862 Senior Ambassador
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    PJ9506 said:
    We signed a new (continuing) contract at the end of last summer to retain our price of LPG with our supplier at 42ppl. 

    In October we received a letter saying we need to pay 10ppl surcharge due to the rising cost of fuel.  Can our supplier do this?

    We are tied to the one supplier unfortunately due to where our tank was put when installed (it now doesn't conform to safety regs apparently but retains "grandfather rights") so it's not as simple for us to just switch... Switching supplier isn't an option but I can't see that what they are doing is legal... Or is it? 
    I've moved your thread as I think you will get even more help on the energy board
    I am a Senior Forum Ambassador and I support the Forum Team on the Wales, Small Biz MoneySaving, In My Home (includes DIY) MoneySaving, and Old style MoneySaving boards. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.All views are my own and not the official line of MoneySavingExpert.
  • canaldumidi
    canaldumidi Posts: 3,511 Forumite
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    PJ9506 said:
    What does your contract say? If your supplier is forced to sell at a considerable loss then you might not have a supplier much longer. 
    It's just a basic 1 page agreement with our details, signatures and current price which says "42p fixed for 12 months max rise of 10% in year 2".  
    Well there's your answer then.......
  • Sorting_Hat
    Sorting_Hat Posts: 123 Forumite
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    edited 6 April 2022 at 1:30PM
    A comment on tank locations. To burst a bubble apart from the rules on power cables overhead having changed (a long while ago) really nothing else has. So no there are not any grandfather rights (unlike driving) .  I advise getting the tank compliant or if it cant be switching to 47's.
  • Our supplier has added 3 surcharges since our fixed term contract started in Feb 21 at 38ppl, July 21 added 8ppl. There have been further surcharges added that we haven't been notified of and just had a recent delivery at 78ppl. I complained and they have credited 10ppl but have just said "due to the volatility of prices they made the decision, rightly or wrongly, not to notify further increases". Does anyone know if they are allowed to add surcharges but not notify us prior to delivery? Contract doesn't even specify how much the surcharge can be.
  • canaldumidi
    canaldumidi Posts: 3,511 Forumite
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    I can't see what your contract says unfortunately.
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