 The Competition Commission has published the long awaited findings of its enquiry into the supply of domestic bulk LPG. It has found that the industry as a whole would benefit from greater competition in the market place, and has proposed a number of ‘remedies’ which it believes will achieve this aim.
In practice, the Commission wants clearer information available to customers about switching suppliers. It has also called for a cap on termination charges, for customer contracts to be improved, and for a new system of transferring ownership of tanks from one supplier to another, if a customer decides to switch.
The remedies have been announced despite the excellent levels of customer satisfaction found amongst LPG customers generally.
Calor has co-operated fully with the Commission throughout the inquiry and supports many of its findings. However, we have concerns that the industry’s stringent safety regimes and standards could be adversely affected by the Commission’s proposed remedy of tank transfer.
One particular area of concern is the requirement to transfer ownership of tanks. Calor remains in dialogue with the Commission, our competitors, and the HSE to establish a workable process that will enable LPG customers to continue to receive a safe and secure service.
Calor believes that customers will continue to decide on their preferred supplier on the basis of cost, safety, security of supply and customer service. We have always focused on these areas and are able to offer attractive, competitive packages with additional benefits such as ‘The Think Tank®’, our telemetry service.
Calor’s success as market leader and high levels of customer satisfaction demonstrate that we are giving LPG customers what they want from a supplier, and for the vast majority, switching is the last thing on their mind.
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