Cheap LPG heating for your home
Find the cheapest prices & haggle down costs
Nearly 200,000 off-grid households across the UK use LPG for cooking, heating and hot water. But buying in an unregulated market can be complicated. Your choice of supplier can be limited so you need to be savvy about when and how to buy, and be prepared to haggle for the best price. We've got all you need to know to keep you cooking on (liquid) gas...
This is the first incarnation of this guide. If you've any feedback or tips, let us know. Or share your haggling and cost-cutting tips with other MoneySavers in the Cheap LPG heating forum thread.
Thanks to trade association Liquid Gas UK, for its feedback on this guide.
What is LPG heating?
LPG (or Liquefied Petroleum Gas), is used for heating as an alternative to mains gas heating systems. It's generally used where there's no piped mains gas in the area, or it's too costly to connect your home.
There's no regulator for LPG, however there is a trade body for the industry, Liquid Gas UK, which helps to ensure safety and best practice among suppliers.
LPG comes in two forms – propane and butane – but it's typically propane that's used for off-grid domestic LPG central heating and cookers.
An LPG tank is classed as a 'pressure vessel', and so has to be tested and formally certified by an LPG gas tank specialist every 10 years.
In addition, your LPG tank's regulator (the device that controls the flow of gas from the tank to your home) should be replaced every 10 years. If in doubt, get in touch with your supplier. Bulk LPG tanks typically have a shelf-life of around 30 years, after which it'll need to be replaced.
Check if the maintenance of your tank is the responsibility of your supplier, as it might save you money on servicing and repairs.
Your tank will need to be professionally tested every 10 years
Safety warning: Never connect a propane or butane supply to a natural gas appliance and always make sure you use a Gas Safe registered engineer to install and service your LPG appliances.
You can switch LPG suppliers – but you'll usually be locked in for two years
Though your current LPG supplier usually owns the storage tank you use for LPG, that doesn't mean you can't switch suppliers for a better deal.
When you switch, your current supplier will transfer ownership of your tank to your new supplier (or in some instances, you'll get a new tank installed). Transferring ownership of your tank shouldn't cost you anything – it's down to the new supplier to cover the costs, though do bear in mind, a new supplier isn't obliged to accept you as a new customer.
Most firms lock you into a two year contract
While you can switch, most firms will lock you into a two-year contract for the supply of your LPG. If wanted to switch suppliers before that contracts ends, it's likely you'll have to pay a hefty early exit fee.
Be aware, the price you pay isn't necessarily fixed during the contract, so do make sure to check exactly how much prices could go up – or ensure the prices are fully fixed before signing up.
Supplied by a communal LPG tank on a 'metered estate'? You can still switch if 90% of residents are out of contract
A metered estate is a group of homes that share a communal LPG tank, which is located on the estate and is filled by one supplier. Each property on the estate has its own meter and the supplier will bill each property separately for the amount they use. All homes being supplied by the same tank should be paying the same rates.
As long as 90% of residents on a metered estate are out of contract with the supplier, your supplier must allow you to switch if you choose. If there are fewer than 10 homes on the metered estate, as long as no more than one home is in contract, the whole estate can switch suppliers.
Be aware of hire charges (tank rental costs)
Typically suppliers will charge between £60 and £70 a year for an ‘above ground’ LPG storage tank, and £90 to £130 a year for a ‘below ground’ tank. Most companies charge this as a daily hire charge (but it can be monthly or annually), which goes towards covering maintenance costs, insurance and emergency call out cover.
If you're on a metered estate, you can sign into a contract with the LPG supplier for a maximum of two years, or you can chose to receive your supply without a contract – but this may affect the price you pay.
Park or holiday home sites often have a single communal LPG tank. The site owner may have their own contract with an LPG supplier for the whole estate. It's still possible to switch suppliers to get a better deal, but you'll need your site owner to do this.
If you sell your property, or you're renting and you leave the property, your LPG supply agreement will end immediately.
If you change to a renewable heating system or mains gas, you'll be able to end your contract early. But you'll have to pay to have your tank removed.
If you're on a metered estate, you don't have to sign into a fixed term contract
Park homes are usually metered estates
Moving home will terminate your supply contract
What if I change to a different heating system?
How and when to buy LPG
There are four main suppliers of these tanks in the UK – AvantiGas Ltd, Calor Gas Ltd, Flogas Britain Limited and JGas Ltd – plus several smaller regional suppliers. You can check suppliers in your area through the Liquid Gas UK trade association.
Compare LPG prices
To get quotes, Liquid Gas UK recommend you deal directly with suppliers, rather than using a broker. With brokers, they secure a deal and you pay them if you're happy with the price. If you want to double check how broker prices compare to going to direct, you could try some of these (feedback is scant, so they're listed in no particular order):
Do you use a better comparison site or broker? Please let us know.
It's worth noting that brokers may charge more for doing the grunt work for you. But often they can get better rates due to the volume of customers they pass onto LPG suppliers, and they often get their commission from the LPG supplier rather than you.
Haggle down prices
Once you've benchmarked prices, you can start to whittle costs down even more by haggling. Ask your supplier if it can beat the quote you have. Be polite, charming and treat the process with humour, you'll get further – never be aggressive.
After your first haggle, whether it worked or not, call a few more suppliers, quoting the best price you've had and see who can beat it. To speed up the process, you could simply knock some off your existing price and say this is what you want them to beat. But don't go too far with this – if it's unrealistic, it may say no.
If you've got a regular or preferred supplier, or someone who has spent lots of time helping you, go back to it to see if it will match the best price you've found.
Bulk buy in summer when demand is low so prices are cheaper
The best time to buy LPG is when demand is low – which generally is in the summer. Yet it's also important not to leave buying gas to the last minute. Emergency deliveries can cost significantly more.
Get into a routine of checking your gas level and plan ahead - get quotes with a few weeks to spare, to give yourself the most flexibility and best prices.
Telemetry units can remotely monitor your gas levels and trigger automatic deliveries
You can get a device, known as a 'telemetry unit’ that's fitted to your LPG tank, and monitors how much fuel is left in it. It'll automatically tell your supplier when you're running low, and it can arrange a delivery to top it up.
However, some people suggest it's better to regularly monitor the gas level yourself, and simply tell your supplier to fill it when it gets down to 25-30% (which gives you a buffer to cover your usage, even in extreme weather conditions, until your delivery arrives). But if you do it this way, ensure you don't end up needing an emergency delivery, as this can add hundreds to your bill.
You have a few options when it comes delivery and payment method. So make sure you choose the one that's right for you:
-
Budget Direct Debit. You spread the cost of your gas equally over 12 months.
-
Variable Direct Debit. The full amount owed is taken by Direct Debit. This may be the case if you have opted for automatic top-ups – when your tank reaches an agreed level, (normally 25-30%) a delivery will be created for you automatically and your tank will be ‘topped-up’, ensuring that you never run out of gas.
-
Payment upfront. You pay for the full order by credit or debit card, cheque or bank transfer (BACS). Consider getting a cashback credit card to offset some of the cost. Alternatively, some people suggest paying into a separate savings account each month and then paying for your supply in one lump sum.
Choose a payment method that suits you
How to switch your LPG supplier
The Competition and Markets Authority (CMA) requires LPG suppliers to include switching information on all new contracts and invoices, making it easier for LPG customers to switch.
Your existing supplier should let you know one month before you're able to switch
Your notice period should be no more than 42 days, but your existing LPG supplier should let you know when you are able to switch. You should also be able to find this date on your supply contract.
Remember, if you want to switch supplier before your contract ends (or outside of this 42 day notice period), you'll likely have to pay an early-exit fee.
If you're on a metered estate, see if there is a metered estate manager or tenants association who deals with the current contract. They can help you connect with neighbours and switch suppliers.
Found a new supplier? Let your old supplier know in writing
Once you've shopped around and found a good deal, check that the new supplier is willing to take you on as a customer. If it agrees, you'll need to contact your current supplier to let them know you want to terminate your contract and switch to a new supplier. Make sure you put this in writing by email.
Complete a 'supplier switch notice' and sign a new contract
Your new supplier will require you to complete a 'supplier switch notice' (a form that you complete to notify your existing LPG supplier that you are switching to a new supplier).
You'll then have to sign a new contract (likely for two years) with the new supplier.
The switch process should take around one month to complete
It usually takes around a month for the whole switch process to fully complete, unless your tank needs to be replaced, in which case the switch can take longer.
Your new supplier will liaise with your current supplier, do an on-site survey, and sort out all the paperwork, so you shouldn't have to do anything. It shouldn't cost you anything and most importantly, you shouldn't lose your gas supply at any point.
Your rights if things go wrong
Your first port of call is to talk to your supplier.
If you're having difficulties with your LPG supply or issues with a bill and the company that supplies your LPG is a member of Liquid Gas UK, you'll be able to get free independent help with supplier disputes by lodging a complaint with UtilitiesADR. They aim to resolve complaints within 90 days.
The first step is to phone the company's customer help line (or go back to the shop, in the case of LPG cylinders). Explain the problem and your suggested resolution.
If you go in with polite gusto, saying you know what your rights are, chances are they'll sort your problem in a flash.
If the supplier won't help, send a complaint letter by post of email to the company head office. Send all letters by recorded delivery, so you can prove they received it, and always save a copy.
Your complaint should mention any statutory rights you think have been broken. Don't go overboard – concisely explain the problem. Crucially, always include what you want them to do to put it right. If you have documentary evidence (or photos if it's damage), include it.
It is worth adding that you will consider court action if this is not satisfactorily resolved.
-
Does your supplier belong to the trade body? Liquid Gas UK has a code of practice which it asks all members to adhere to. If the firm doesn't, it may be kicked out. It's also a member of an independent alternative dispute resolution scheme for utility providers – UtilitiesADR.
If you've exhausted all routes via the supplier and the trade body, there are two consumer rights which may help you: -
Section 75 of the Consumer Credit Act. On goods worth £100+ and you pay at least 1p on a credit card, then if something goes wrong, the card company is jointly liable for whole cost of the item or service, along with the retailer, under a special law called Section 75.
This is particularly valuable for LPG consumers, as the next step is the small claims court. Section 75 gives you a robust option without having to go to that trouble, plus allows you to take up the issue with the Financial Ombudsman Service (for free). See the Section 75 guide for more. Though only do this if you can clear the card in full the next month to avoid interest. -
Consumer contracts regulations. These regulations give a 14-day cooling-off period after you've had an order delivered (see Consumer Rights for more info). However, it may be difficult to enforce these regulations once the LPG has been put in your tank.
If you live in an area where there's a high number of LPG customers, your local Citizens Advice might be able to offer support. Citizens Advice can offer practical, legal and impartial advice to consumers and can pass information about complaints to Trading Standards.
This article is based on the process for England and Wales. We've included the basics for other jurisdictions, but for more, see Northern Ireland Courts and Scottish Sheriff Small Claims.
If all else fails and the shop hasn't given you a satisfactory response, don't be disheartened. You can still go to court, but the only person who can force action is a county court judge (sheriff court in Scotland).
Yet before you get legal on their butts, you're expected to try to resolve things directly. Ideally, send a "letter before action" to say you are going to take them to court. If you don't try, the judge is likely to look unfavourably on your case, so always use the steps above first.
Legal action in what's usually known as the small claims court is limited to claims under £10,000.
See the Small Claims Court guide for full info.
Complain in person/by phone to the supplier
Send an official complaint in writing
Check if you can use an independent complaints service, or if you can rely on your consumer rights
Contact your local Citizens Advice centre
If all else fails, take court action
Is LPG heating being phased out in the UK?
In 2021, the previous Conservative Government set out its plans to make buildings in the UK more environmentally friendly and get closer to its 2050 net zero goal. As part of this plan, it was proposing to phase out fossil fuels, such as LPG, by 2026, which was later pushed back to 2035. This phasing-out of fossil fuel heating systems in the UK will only affect those buying a new boiler. So if you currently have an LPG boiler, you won’t be expected to replace it.
Plus, there are now renewable alternatives to traditional LPG, such as BioLPG (also known as biopropane) which is chemically identical to LPG, but is created using a variety of biological raw materials, such as used cooking oil, animal fat, vegetable oil, and waste. It can be used in the same way as LPG and can replace a household’s existing supply, without any need to change your tank, pipes or appliances.
BioLPG is already widely marked in the UK, so get in touch with your supplier to see if it’s possible to switch and compare prices.
Share this guide?
