LP Gas suppliers generally offer to fix the price of LPG at a discount to the existing rates for a period of six months in return for a new 3 year contract on their standard terms. This enables the supplier to revert to their standard prices once the initial 6 month fixed price deal finished.
Once the initial ‘deal’ period has expired you have absolutely no control over your supply price for the rest of the 3 year contract. You either buy it at the monthly ‘schedule’ price, plus any ‘temporary surcharges’ or you do without LPG. The supplier has you trapped.
Our Yorkshire based client had done exactly this and tied themselves into a number of traditional LPG contracts. Once the initial 6 month fixed rate period expired, they were unwittingly being hammered by the suppliers standard price reaction to the market fluctuations on LPG prices. They didn’t have the time or expertise to break away from the day to day running and development of their charity to keep track of these rising costs, let alone sort it all out for themselves.
Having engaged with the client on other categories such as electricity and water, we noticed that the incumbent LPG provider was increasing their prices yet again, by a whopping 23%! At the time, the LPG market had increased a little, but nothing like the hie the incumbent supplier was applying.
Using our experience of the LPG market and our negotiating skills, we have managed to move the client to a new supplier saving them 54% on their current prices – an actual saving of £25,000.
Not only have we made them this initial saving, but the contract we have put in place is far more transparent, tracking actual movement in wholesale prices, giving the client confidence that they will not be ripped off in the future by sudden and unsubstantiated price increases.
If you are experiencing price increases from your LPG supplier, or just want to check that you are paying competitive rates, contact Enerteq today on 01423 815299 or click the button below for a free review and see if we can make you substantial savings.