About to buy a new-build with LPG - locked into Calor to start with? And tips?

pinkteapot · 23 October 2019 at 8:45AM

We'll shortly be buying a new-build with LPG (rural area). I've not had LPG before. I've been reading up online and on here so have already learned a lot (and have double-checked with the builder that the tank is >3m from the boundary!!).

My questions are:

1) The builder's installed a tank from Calor so says I have to sign up with them (i.e. can't choose a supplier myself). I've assumed that's true and I'm stuck with Calor as my supplier for the first contract. Does that sound right though? I'm expecting to be absolutely hammered on price for those first two years as I won't be able to negotiate if they know I can't sign up with someone else.

Has anyone bought a new-build which 'comes with' an LPG supplier and been able to negotiate anything?!

2) When I phone them to open our account: Is my understanding correct that our charges will be made up of a tank rental charge (similar to a standing charge) with a daily rate, plus a cost per litre/kg for fill-ups? Are they the only two costs I need to be asking for?

G_M · 23 October 2019 at 7:01PM

I'd be surprised if you can be forced to sign a contract against your will.

But I don't have LPG and so may be wrong - maybe it's somehow part of the contract you sign with the builder?

Is the tank owned (by the builder and subsequently you), or rented from Calor?

Neil49 · 24 October 2019 at 10:56AM

I would have your solicitor establish the situation formally and have it documented rather than by word of mouth.

You could be committed to purchasing your supply from Calor at whatever rate they set. If this was the case then you could also have problems when you come to sell your house in the future

pinkteapot · 24 October 2019 at 12:22PM

Thanks, both. Calor installed the tank (well, the developer had to dig the hole and Calor came out and dropped the tank in) and put an initial 100l in. The developer just said I needed to phone Calor when we get the house to open an account, so I assumed we were stuck with them to start with.

I can't imagine we'll be in a situation where we're locked to them for life! I assume it'll just be as normal - Calor own and supply the tank but we can switch supplier in the future as long as the new supplier is happy to take over that particular tank. I certainly haven't signed anything to say the house can only ever be supplied by Calor (though to be fair, I've not signed anything at all re the energy supply).

You have got me wondering now so I'm asking the developer more questions. Ta!

Mister_G · 24 October 2019 at 12:49PM

You would normally enter into a 2 year contract with Calor. After that time, you are free to shop around.

Certainly look to see if there are any independent suppliers, as they can often be cheaper than Calor, Flogas or Avanti.

pinkteapot · 24 October 2019 at 1:32PM

Thanks. That’s exactly what we’ve been assuming but the earlier replies made me wonder.

We’ve assumed we’ll get battered on price for those first two years as Calor will know we’ve got no choice, but just wondered if anyone had ever tried to haggle in that situation.

pinkteapot · 25 October 2019 at 9:47AM

jeepjunkie wrote: »

You do know that if you sign a contract you will get adhoc topups so you will have to budget for this, each will be the low £hundreds.

Yup. I spoke to Calor to find out how things worked (but haven't signed up yet as the purchase is still going through). I'd assumed they'd take money on a monthly DD then top-up when needed but they said you pay when you get a top-up. That's fine - we've always put money for utilities into a specific savings account each month, for use when bills come in.

I've put a huge amount in the monthly budget for LPG at the new house, having read so many times that it's horrendously expensive. Hopefully we won't need quite as much as I've budgeted but we can reduce it in the future if that's the case.

jeepjunkie wrote: »

If you don't sign a contract, and stick a padlock on the tank, you will be in control of topups but will pay a bit more.

To be honest I liked the sound of Calor monitoring the level remotely and arranging top-ups for us. Saves us having to remember to check whether it's running low.

jeepjunkie wrote: »

Switching suppliers involves a lot of hassle.

Fair enough. We're pretty lazy so probably won't switch. I do want to make sure we're able to if we do want to though (mostly so I can use other suppliers prices to try and haggle with Calor).

ScreamingDead · 25 October 2019 at 12:44PM

I've always found switching LPG suppliers an easy process, the new supplier does all the work and takes ownership of the tank from the old supplier, just start the process of getting quotes before the end of your existing contract. Most contracts have a fixed price per litre for the first year then allow a price increase in the second year so ensure you fill the tank just before the end of the first year. My main tip would be never sign up with Flogas, they were the worst supplier for increasing prices in the second year.

Mister_G · 25 October 2019 at 1:46PM

I've had LPG for 36 years now and have had at least 6 suppliers. Changing between them has never been a problem.

bertiewhite · 25 October 2019 at 5:19PM

jeepjunkie wrote: »

You do know that if you sign a contract you will get adhoc topups so you will have to budget for this, each will be the low £hundreds.

pinkteapot wrote: »

I'd assumed they'd take money on a monthly DD then top-up when needed but they said you pay when you get a top-up.

I had Calor LPG in my last house and found them nice to deal with. I had a fixed-price 2 year contract and paid through a DD which reduced half way through as my account was well in credit.

I also had a telemetred gauge which enabled automatic top-ups when the tank got down to 20% but they would let me know when they were coming. I was also able to get half-fills which was useful when I knew I was selling up.

pinkteapot · 27 October 2019 at 5:24PM

Thanks, all. Info much appreciated.

It is a new-build with a good energy rating so that should offset the higher unit prices than we’re used to on mains gas in older houses.

About to buy a new-build with LPG - locked into Calor to start with? And tips?

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