Flogas rip off standing charges

Jonsnape

We took out a new contract with Flogas for the supply of LPG in December 2020. We had agreed a fixed price for LPG for the first 12 months and a maximum price for the year after. A standing charge was also agreed at 22.18p per day. That standing charge was increased to 27.65p per day last September. We have just received a letter advising us that as of October 19th the standing charge will be increased to 41.47p per day, an increase of 50%.

When I phoned to ask why, I was told that all costs had gone up including deliveries and tank maintenance. I pointed out that we had not had a delivery this year and that we had not had any maintenance or inspection of the tank, therefore there was no justification in increasing the standing charge. They disagreed.

I decided to call them pretending to be a new customer and was quoted 56p per litre and a standing charge of 21.9p per day, 19.5pence less that they want to charge me now!

My LPG is on a fixed price of 42p per litre until the end of December and there is nothing Flogas can do about that as it is contractual. However they can increase the standing charge but not by more that 50% per annum. It would seem to me that as they can not increase the gas price, they have increased the standing charge by the maximum possible to compensate for the fixed LPG price.

I do not believe that the costs have gone up by 87% in 20 months and I would imagine delivery costs are included in the gas price especially for those who have multiple deliveries a year. We have had 2 deliveries and not maintenance or inspections since December 2020.

Lets not forget, they have offered me LPG at 56p per litre and a standing charge of 21.9p per day, less than it was when we took out the contract!

Sorting_Hat

Tanks are tested every 10 years with UG tanks having an additional 3 yearly test.

So apart from the initial visit to rebrand the lpg firm may never have cause to visit again.

Its best to think of these charges as rental for the tank.

drsquirrel

Is it possible to buy tanks outright and not have to pay a standing charge? I only found out about LPG standing charges recently which surprised me, I use Oil so this doesn't happen.

Sorting_Hat

Yes there are "self owners" but its rather a dead end as (here comes the science bit).
 Before the law change in 2009 if you rented the tank and wanted to change supplier it involved the physical removal of the existing tank (the old supplier) and the installation of a new tank by the new supplier. Even if the tank was underground.
 It was such a grind no -one would change, no wonder folk were encouraged to have underground tanks. So if you owned your own tank you were not tied and could shop about fill by fill.

It is illegal for a gas firm to fill another firms  tank, and the customer is agreeing that for a period of 2 years they will rent this or that firms tank and will exclusively buy gas from whoever's tank is at their property.

However

In 2009 the tank switching became easier and now (when the customer switches) the tanks are merely bought and sold between the gas firms and no physical exchange takes place (for the most part). This removes the advantage of owning your own tank, the LPG firms market and concentrate on the rented tanks (the ones with contracts) and the self owners get much higher gas prices, the hassle of paying to maintain and repair their tanks etc.

I should add for commercial the switch still involves the removal/installation process but that's another story.

Doorbundle

Just had this Email from Flogas!

Hi Mr ……..,   From 1 October 2026, your standing charge will increase to 27.84 pence per day per tank (plus VAT).   We understand that no price rise is welcome, so we'd like to reassure you that this increase is in line with inflation, and is being made in accordance with the terms of your supply agreement.   Understanding why your standing charge increases  Your standing charge helps cover the cost of keeping your LPG supply safe, reliable and ready whenever you need it. This includes maintaining our network and equipment, delivering excellent customer service, and meeting the ongoing costs of operating and maintaining your supply.   Like many businesses, we've continued to see these costs rise over time, and this small increase helps us continue providing the service you expect.   If you're worried about paying your bills or would like to spread the cost over the year, we're here to help. We have a range of payment options available, including budget Direct Debit plans. Please reply to this email or get in touch on My Account  if you'd like to discuss the support available   We're committed to doing energy right by you, and we'd like to thank you for your continued custom.

Andrew McCann Head of Consumer and Customer Experience | Flogas Britain Ltd

We have two tanks.

Here's my response sent today:

Good morning Mr McCann,

Thank you for your email regarding the proposed increase in the standing charge from 27p + VAT to 27.84p + VAT per day.

I am a domestic customer and have been since November 1988, through the various iterations of suppliers now operating as Flogas. I have two tanks at my property, and historically the standing charge of currently 27p per day has covered both tanks together.

Your email states that the standing charge will now be applied per tank. If this is correct, the change would effectively double my daily standing charge, which clearly exceeds the rate of inflation by a considerable margin.

Given that your technician services both tanks during the same visit, and that LPG tanks are largely maintenance‑free, I find the introduction of a separate daily charge per tank to be both unfair and unreasonable. The cost of maintaining two static tanks on the same domestic property does not double simply because there are two of them.

Before I can accept this change, I would appreciate clarification on:

Whether the standing charge has indeed been redefined as per tank rather than per installation,

and, if so, the justification for applying a doubled daily charge when the service requirements for both tanks are fulfilled in a single visit.

I look forward to your explanation so I can understand the basis for this increase.

Regards,

Signed

…………………..

Grateful to know if others with more than one tank have recieved the Flogas Email today, if so how have you responded?

JonnySegway

Move to Northern Energy instead.