Flogas price going up even though fixed

manda1205

Hi,
Can anyone help with how LPG works please?
My parents moved into house with LPG last year. They joined flogas as were previous company. They are paying 86ppl and entered a fixed 2 year contract. Flogas are now saying they're putting it up to 95ppl! 
Saying "they need a little more to keep things going!"
Can they do that?
Surely fixed means fixed. That's the whole point of fixing a price. So it doesn't change in that term. Why is LPG any different to other energy companies?
I've just got a quote from Avantigas and it's 47ppl for a year fix and £66 a year standing charge. Nearly half the price of flogas. 
Does anyone know the penalty for leaving flogas early as my parents don't know or can they just argue they're putting price up, so we'll leave? 
Thanks for any help. 

QrizB

manda1205 said:

Can anyone help with how LPG works please?

The LPG market is unregulated. Caveat emptor.

manda1205 said:

My parents moved into house with LPG last year. They joined flogas as were previous company. They are paying 86ppl and entered a fixed 2 year contract. Flogas are now saying they're putting it up to 95ppl! 
Saying "they need a little more to keep things going!"
Can they do that?
Surely fixed means fixed. That's the whole point of fixing a price.

They need to check the terms of their contract. It's fairly common for a two-year LPG contract to be fixed for the fiirst year only, with an increase permitted in the second year.

manda1205 said:

Does anyone know the penalty for leaving flogas early as my parents don't know or can they just argue they're putting price up, so we'll leave?

Again, check the contract.

You might get somewhere by phoning them up and haggling, considering that LPG has come down in price since last year and saying "they need a little more to keep things going!" is really taking the mickey. But check the contract first and see what it says about increases.

manda1205

Thanks very much @QrizB
My parents called flogas yesterday to be told they are in 2 year contract one year fix. They said they are well within their rights to put it up after the year, which is exactly what they are doing. 
My father asked if they could leave early and also mentioned the prices elsewhere to be told by the CS person that she had a law degree and they could not leave a
Nor argue the costs. 
They seem a lovely company to deal with.
I will be giving them a call today to discuss. 

Mister_G

Welcome to the wonderful world of LPG!  As has been pointed out, the market is still unregulated and Flogas have a lot of "previous" in the area of outrageous price rises.

I know, as I've had LPG for 40 years!

You certainly need to check the contract.  Sometimes the second year price rise will have a cap on the percentage price rise - but not always.  If they exceed this percentage then you are at liberty to leave.

The price they are paying is exorbitantly high.  I paid 53ppl on my last 1000 litre fill back in February, which appears to be about the "going rate".

Sorting_Hat

I would echo the above. All the agreements are 2 years usually with the 1st 12 months fixed unless specifically stating its 24 month fixed. Check that cap in year 2 is the entire price and not just a cap on the gas price leaving an increase in "operating costs" to be applied, of conversely the cap is on "operating costs" and the gas price can go up.  

Sorting_Hat

I know people here have terminated LPG agreements early but the agreements tend to be worded such that since the tank is the property of the LPG firm an early exit could mean the removal of the tank by the departing firm.  I'm sure others with more direct experience of negating that sort of clause will be able to advise.