LPG Competition Commission, Measures

After investigating the competition in the LPG market, the LPG Competition Commission showed some concerns regarding the health of the competition and the role of the larger players of the market in making the competitive environment the way it is. The LPG Competition Commission proposed certain measures that can be taken for resolving the concerns and making the competition a healthier one, which would benefit not only the customers but also the smaller, new players in the market.

The LPG Competition Commission emphasised the need for a regulatory system for the LPG industry, which can determine, regulate and monitor the practices of the different LPG suppliers. This is needed because the relatively larger suppliers are using additional equipment, specifications and features that enhance their operations, and it is these additional factors that are now determining the competition in the market and putting the new entrants and smaller suppliers at a disadvantage. For this, there should be a regulatory system that can specify and define the minimum acceptance level for the different companies.

The LPG Competition Commission expressed all of its concerns in order to improve the conditions of the market, and to look out for the benefit of the customer by making the market more competent and increasing the opportunities for the new entrants in the LPG market - and also those smaller suppliers that are already present in the market.

Most of the solutions proposed were related to supplier switching, so that the customers have the opportunity to change the supplier without the fear of an ordeal in the case that they are not satisfied with the existing supplier’s services. The first remedy that has been proposed is that there should be a different arrangement regarding the ownership of the tank so that the customer doesn’t have to go through the process of getting another tank for the term with a new supplier.

There should be standardised process for the changeover of suppliers, and the information available to the people regarding the switching policies should be improved and the customers should have access to the knowledge related to other suppliers and the prices and deals that are offered. In this way the customers won’t have to feel trapped with a supplier they’re not satisfied with.

There should also be some measures related to the contracts and their terms, and the period of term with a supplier defined in the contract should not be as long as they currently are.

The LPG Competition Commission has taken some measures regarding the changeover of suppliers and specified some rules and regulations that would have to be followed from the month of April this year. A set of provisions has been defined for the suppliers, and they have to follow those provisions in case a customer wishes to switch. A limitation on the length of the contract term has also been defined, and the suppliers cannot create a contract exceeding that term. If the contract expires and the customer wishes to switch, then a written request will have to be sent to both the new supplier and the existing one.

Article Source: http://www.contentspool.com

Flogas UK Ltd is one of the largest LPG suppliers in the UK amending the rules and regulations set by LPG Competition Commission.

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