SOCIAL and POLITICAL |
Some whinges and celebrations about the way we live in the 21st. century
in no order of importance; just as
they arrive, latest at the top.
What a hoo-hah re. MPs' expenses, eh? ************************************************************** To go to the latest developments in the LPG saga, including a kind of result, click here. ___________________________________________________
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Just adding my two penn'orth here without going into too much lengthy finger-wagging, though I'm getting really tired of the "Sorry"s. They sound extremely hollow now and the only thing most of these inepts are really sorry about is having been caught.
Another thing that gets more irritating with every revelation is the stuck-record phrases about having "done nothing wrong" or that "the whole system needs to be reorganised". Having read the The Green Book, I find that, broadly, there is little wrong with it. Many of the apologists have done something wrong and hope that they can get away with just repaying stolen monies.
The only actual reorganisation of the entire system that is required is, firstly, to elect MPs who rigidly will abide by both the letter and the spirit of the Green Book and, secondly, to remove the Pomeranians, Poodles and Pussy Cats from the Fees Office and install Rotweilers and Pit Bulls.That's my answer!
Support Body for Users of Oil-Based Domestic Heating Fuels.
You will know that petrol and diesel fuel prices have been coming down again recently - a very welcome trend, of course. I have looked back and find that these prices were last at these levels in October 2007. I was prompted to look back too at the price I was paying for Liquid Petroleum Gas (LPG), the fuel on which I run my central heating. I found that since June 2007, the price of LPG has gone up 29.4%. The significant difference was that where the car fuels are now back down, LPG remains up.
I wrote to my supplier pointing this out to him and requesting his comments, but I have heard nothing from him - hardly surprising, as he will not want to discuss his profit margins with me, a mere customer. Knowing that electricity and mains gas customers have OFGEM and other statutory bodies to help them fight inequalities in their energy supplies, I went online to find an equivalent supporting body for LPG users.
OFGEM will not deal with individual people, Energy Watch referred me to the LPG Association, which is a trade one..... [and all I could find otherwise was a newly set-up (September 2008) organisation called Customer Focus, which said they would be pursuing the kind of goal I was seeking some time in the future - a start, but how long will they take to achieve anything?]
Coincidentally, I was surprised and pleased to hear a five-minute "plug" on last Saturday's Money Programme (BBC Radio 4, 12 noon 13th. Dec.) on this very subject. It dealt with fuel poverty among a group of some four million, mainly rural dwellers, who rely on oil fuel for their heating. It was here that I learned that there is no statutory body to monitor, nor, indeed, any regulation of, the oil supply industry regarding domestic energy. In the programme, LPG was not mentioned, but that while oil fuel has gone up by 70% but down by only 50%, my finding is that LPG has not come down at all and we are, to an extent, victims of whatever our suppliers throw at us.
Even ‘shopping around’ does not seem to be a feasible option. My present supplier is my nearest; more distant ones seem to be more expensive anyway...... It was said (on the programme mentioned) that there are some strategies which can help oil consumers (bulk buying for multiple households within a community, for example), but in a broader, more general sense, it seems to me, that it is only fair that if electricity and main gas consumers can have bodies who will champion their causes, then, when it comes to the use of oil products for (particularly domestic) heating, those consumers too should have a statutory right of support.
I should be very much obliged if you could give some consideration to the points I have made and, if you agree, apply whatever pressure you can to whoever you think might be appropriate, person or organisation, who may be able to begin implementation of such a scheme. It may need nothing more complicated than extending the remit of OFGEM ......
I should add that after writing this, I did hear from my supplier. The following is his (edited) reply:
You are correct in your statement that petrol and LPG are derived from the same base material. LPG is, however, a totally different commodity and is subject to many different price drivers. The price of Naptha, weather conditions, particularly in North America, and various other pressures all have an effect upon LPG prices. Additionally, stocks of propane are bought in advance of heavy winter demand at a fixed price to attempt to assist price stability; this is obviously a double edged sword. Also, the crude oil price also takes time to work into the LPG market so, although it may affect the price of LPG, there is inevitably a delay.
I do not profess to be an expert in what is a very complicated subject but I hope that my limited knowledge may shed some light upon it. On a basic level I can assure you that when the propane price to us does decrease, the reduction will be passed onto our customers.
The following is the reply by e-mail from Consumer Focus:
Many thanks for your letter concerning support for users of oil-based domestic heating fuels. This is an area that is of particular interest to Consumer Focus and that we will be working on in the coming months.
Earlier this year, the Business and Enterprise House of Commons Select Committee undertook an inquiry into the competitiveness of the GB energy markets. In its report, the Committee raised concerns about the prices paid by households that are not connected to the gas network for domestic heating fuels and the lack of regulatory oversight of this market. The Committee recommended that Government consider whether the statutory duties of Ofgem and Consumer Focus should explicitly cover the market for domestic heating fuels.
In our forward work programme, Consumer Focus has committed to ‘develop an understanding of problems facing those who are off the gas network and reliant on heating oil, propane or other fuels’ and ‘exploring the case for further advocacy on a potential regulatory gap by developing our understanding of the needs of energy consumer who are outside mainstream regulation’. Early in 2009, we will be developing our project plans and will feed in the concerns you raised in your letter into this area of our work.
At the start of December 2008, we submitted our response to Ofgem’s energy supply probe initial findings report. In our response, we highlighted the problems faced by consumers not connected to the gas network. We argued that there is a strong case to give full regulatory responsibility for domestic fuel including heating oil and LPG to Ofgem. We stated that regulation by Ofgem would help ensure that there is no gap in the protections offered to these consumers across the different types of energy they use.
There was an energy debate in the House of Commons on 16 December 2008. A number of the MPs that spoke at the debate raised concerns about the lack of competition and prices paid by consumers for domestic heating fuels. They were concerned that this group of consumers are not being treated fairly or consistently by suppliers. There was some support amongst MPs to extend Ofgem’s remit to cover this market. We will be following this up in 2009.
My response of 29.12.08:
Many thanks for your reply.
I was particularly interested to note that this issue has been picked up by certain parts of the Government and by Consumer Focus. I hope that developments will be well-publicised and pursued, shall we say, ruthlessly? I use the word because, as you will be aware, issues are often approached with initial enthusiasm, with a regrettable fall-off in persistence, particularly when other issues come along and take precedence.
I assume that any progress on this subject will be posted on the CF website; I will follow it with interest.
Consumer Focus response of 31.12.08:
Your points about the need for continued focus are noted and I will share this with colleagues. As you mentioned in your email, it will be important for us to communicate our work in this area and we will be working up a public affairs/communications strategy as part our project plan. I have made a note to update you on progress.
I felt I had to write to you in the light of the sheer irony of receiving the your advertising card (with the green pig money box)...... It shows how I can change from solid fuel, electricity or oil to gas and potentially receive generous grants.The irony is that I am already on Calor gas and in some respects, I wish I were not. I note (it has to be said, with some bitterness) that the last of the encouragements on p.3 of your card is “….we’ll ensure that you enjoy all the benefits of gas in non-mains gas areas….”. Good. Does that include the cost? I suspect not.
We have all seen the price of crude oil climb to all-time highs in 2008 – it could be seen (and felt!) in the price of petrol and other oil products – including LPG – as they all followed suit. However, the oil price, as you will know, has come down. I am now paying for car fuel what I was paying in October 2007, but the price I am paying for LPG is still some 30% more than I was paying at that time. I have put this to my supplier who has, of course, brushed off my protests with technical reasons, which in the short term may be valid, but which in nearly eighteen months can hardly be justified.
In some 20 years’ use of LPG, I have never seen a price reduction and would be interested to hear from you how the high price is justified, if it is not merely to boost profits on what I imagine is a comparatively low volume market.
As you may expect, I received no reply. I copied the letter to Consumer Focus and received the following reply(23.03.09):
Since January I have been leading our research and development of both policy and future advocacy for LPG. The concerns and issues you bring up in your emails seem worryingly typical in the market, hence Consumer Focus’ work. Thus far this has included meeting with representatives of the LPG industry and obtaining information from consumers such as yourself. Once a firm policy line has been developed, this will be available publicly, including on the website.
Of particular relevance is the Competition Commission’s draft order on LPG, which comes into force next month on the 13th. Effectively these new rules – which we support, and are waiting to see how they will work in practice – will vastly increase the ability of LPG consumers to switch and/or get out of poor contracts with suppliers quicker. FAQs regarding this can be found at http://www.competition-commission.org.uk/inquiries/current/gas/lpgas_order_faq.pdf.
The ability to switch more easily seems relevant in your case given the behaviour of Calor Gas, especially over pricing. Clearly LPG tends to track the price of oil and so there will be an inherent instability to its price; however suppliers should be passing on falls in the base price at the same rate as they do increases.
I hope this helps; please do keep in touch. I would be particularly interested in any possible switching of supplier you attempt.
My reply of 27.03.09:
Thank you for your early reply.
It is very encouraging to note your progress and the involvement of the Competition Commission. I look forward to hearing the extent of any effects this may have on the LPG supply industry.
I had not pursued the possibility of changing suppliers too seriously, as there are not very many near where I live and the one to whom I did make an enquiry was even dearer than my existing.However, with the encouragement of your existence, I may pursue this.
The ability to change suppliers, in the same way that mains customers can, is, of course, very important. However, the prices charged by wholesalers to the retailers is equally as important, as you will know, and this must be the other side of the same coin, as it were. On a practical level, while all mains suppliers are online, facilitating customer change, I think fewer retailers are, or are in a position to do this, inevitably making change more time-consuming. Perhaps the introduction of more regulation can encourage change, however.
I look forward to hearing any future developments and will be pleased to pass on to you any consumer-related information which I may feel is relevant to your work.
Thank you again.
On 03.04.09, I received my usual monthly account and Lo and Behold! with it was a letter from the Managing Director. It was a photocopy, so presumably all customers of my supplier will receive one and know that we have a sort of RESULT! The body of the letter says:
Dear Customer,
You will be well aware that political, economic uncertainty and supply issues have had a severe affect (sic) on the price of energy products, which, unfortunately, includes LPG. Calor has done all it can to negate the consequences over the past few periods including buying forward and hedging of supplies, which has at least ensured stability of our cylinder prices for the past few months. Factors out of our control continue to add problems and, whilst the cost of product has dropped in recent times, the dollar/sterling exchange rate is now working against LPG, which is of course purchased in dollars.
However, having reviewed all these aspects, Calor have announced reductions to certain sectors in the cost of our cylinder gas. As such the price of our 47kg fills will reduce by £2.00 inc vat each and our 19kg fills by £1.00 inc vat.
Please be assured that Calor are keeping these matters under constant review during these times of unprecedented price volatility. Meanwhile, I would like to take this opportunity to thank you for your continued custom and support in these difficult times.
So don't spend those £2s all at once - but still, Owt's better 'n Nowt !
These are the responses received so far. As and if I get more, I will post them here.
1. I run a Mondeo and a classic car. The VED for these is £145 and £185 respectively. But I do 8,000 miles p.a. in the Mondeo and only 800 in the classic. So they charge me MORE for the car which, on an actual yearly output, pollutes LESS.
2. Moreover, the tax is for possession, not for use (cf. the TV licence). Which actually pollutes more, a Prius driving a mile a week or a Centurion Tank locked in a shed?
3. They (the SDs) will put up VED for big gas-guzzlers by over £400 p.a. On the basis that the people who can afford large GGs will be able to find the extra duty in back pocket change, how will this alter people's car use behaviour?
4. On the contrary, if I were having to pay much more for a fixed yearly tax on a particular vehicle, I would use it even more to ensure I was getting my moneysworth out of it.
5. If VED were removed entirely and an addition made on fuel duty to cover that loss , watch the scramble for more economical cars !
6. And for a really radical set-up, ban all commercial delivery journeys by road of greater than, say, 80 miles. Then watch the sudden sensible use of rail and water transport !
Whenever I receive such a thing, I do what I would hope everybody does: check it out!
If it doesn't appear on either of the sites quoted below, then by all means exercise some caution.
If they appear on either of these sites, do not forward them to the whole of your Address Book. Delete the messages and carry on with the rest of your life!
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