Mundell welcomes improvements for LPG customers
David Mundell has welcomed news from the Office of Fair Trading that will secure improvements for domestic bulk LPG customers, following an Off-Grid Energy Market Study which identified concerns that some suppliers were not treating their customers fairly.
The OFT has secured voluntary agreements from the major liquefied petroleum gas (LPG) suppliers to make changes to their domestic bulk customer contracts and improve transparency around switching and cancellation rights. Avanti Gas Limited, BP Gas, Calor Gas Limited and its sister company Calor Gas Northern Ireland, Flogas UK Limited and its sister company DCC Energy Limited (trading as Flogas Northern Ireland) have all agreed to make changes.
Most people with a large supplier-owned LPG tank on their premises, rather than the smaller cylinders, will usually enter into contracts for the supply of domestic bulk LPG. These contracts typically begin with a two-year exclusive supply arrangement, during which the customer is tied to the supplier.
The improvements to the terms and conditions for the supply of LPG and other relevant customer information will mean that customers can better understand how prices can change during this two-year period. In particular, the changes should also ensure that exit charges are clearer to customers; improved rights to cancel or to switch supplier; and that customers fully understand their options after an initial lock-in period.
The MP for Dumfriesshire, Clydesdale and Tweeddale has welcomed the improvements and has a long-standing interest in off-grid energy.
Commenting on the announcement, Mr Mundell said: "I've long argued for greater transparency between LPG suppliers and customers, and many people will hopefully benefit from the steps now being taken to ensure this happens.
“150,000 people rely on LPG to heat their homes, and they need to know where they stand when they are dealing with suppliers. Customers have a right to be better informed about how prices can change as well as their cancellation rights, and I view these improvements as significant step in the right direction."