Can LPG supplier add surcharge on fixed price contract? 3 March 2022 at 4:14PM edited 2 April 2022 at 10:29PM in LPG, heating oil, solid & other fuels 7 replies 348 views

PJ9506

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? 

Thrugelmir

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

Thrugelmir 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".  

Glad

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

canaldumidi

PJ9506 said:

Thrugelmir 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

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.

kevinb12

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

I can't see what your contract says unfortunately.