News From OilFiredUp
RSS
LPG Customers set to benefit from Competition Commission Order
31st October 2008
The Competition Commission has responded to concerns expressed about the manner in which the domestic LPG market operates and has published an Order for the Supply of Bulk LPG for Domestic Use as part of the Commission's ongoing Inquiry into the LPG industry.
The Order comes into effect in April 2009 and established processes and procedures which the Commission believes will improve competition within the domestic LPG heating industry.
Central to the order is the creation of a framework which makes it easier for domestic customers to change suppliers. The framework includes a tank transfer process; limits exclusive supply contracts to a period no greater than 2 years; requires LPG suppliers to provide information to customers on their right to switch; and outlines a tank transfer process between LPG suppliers.
Unlike most heating oil customers, LPG customers have traditionally been effectively tied to a single fuel supplier. LPG suppliers have in the past benefitted from exclusive supply contracts and leasing tanks to customers. The result was that unlike oil heating customers who in most instances own their tanks and can switch supplier at any time, switching between LPG suppliers for the small numbers of domestic LPG users in the UK, was far from straightforward. The new Order aims to change that.
However, the Order does not apply to certain categories of LPG customers, including those who draw fuel from a central tank on a 'metred estate', which is shared with other households.
According to UKLPG, the trade association for the LPG industry in the United Kingdom, "UKLPG as the trade association for the industry has been cooperating fully with the Competition Commission and believes that the outcome will contribute further to maintaining domestic customer satisfaction. Over the next 6 months UKLPG will be adding information to its website specifically for domestic LPG consumers."
Further information on the Order can be found on the Competition Commission website, together with a useful FAQ guide to the Order.