While only about 10% of homes use propane to stay warm in the winter, many more use propane for powering appliances like grills and ovens. If this is the case, you might be fully reliant on your propane services, meaning that if your residential propane company is bought out, you need to know what to do.
Here are five things that you need to think about if your company has been bought by a larger company.
1. Do You Lease or Own Your Tank?
When you own your own propane tank, it’s much easier to get by. The merger of companies shouldn’t matter to you. Hopefully, the acquisition means better service and lower prices but at the end of the day, your day to day life getting propane shouldn’t be too heavily impacted.
When you lease your propane tank, you might need to switch over to the new company or you might now be leasing it from another company. They are within their rights, for better or worse, to raise the price that they charge for the lease. They can even remove you from their service area, so get in touch with the new company ASAP.
When a company is acquired, they might have special plans for their equipment like their propane tanks. This means that the old company might want to reach out and get their tank back. They’ll take any infrastructure that they own along with it, so be wary of this before you agree to anything.
Some companies will need you to buy the tank from them outright if you want to keep it. You might be able to get your own tank now if you’re just leasing. This means you won’t have to worry about this in the future.
The new company might want you to lease one of their own official tanks before they can provide service to you.
Expect some changes with the company and it could end up costing you some extra money in the end. Just make sure that you have access to propane and a tank, no matter what happens. The new company is likely going to be happy to keep you on as a customer so feel free to reach out to them.
2. What About Contracts?
If you have a contract with your previous propane company, it might be written in your contract that you still have to stay on for the duration. In some cases, you might be able to get out of your contract, which could be good if you’re selling the property.
Termination fees can be a pain in the neck so make sure you’re not going to be hit with a major fee for ending services with the company. If you’re not careful, you could end up having to pay hundreds extra just because you’re no longer interested in having service from the new company.
You might even need to pay for the company to pump out the additional propane in your system. Tanks that are full can’t be moved, they’ll need to be pumped out and back into the company’s storage facility. The new company might also charge you a tank pickup and a closeout fee.
3. Look At Fees From the New Company
In best case scenarios, the acquisition of your propane company shouldn’t impact you at all. You should be able to continue your day to day use of propane as if nothing happened at all. However, in some cases, the new company is going to consider you a new customer and end up charging you like one.
The first transaction might have a few fees attached to it, meaning setup frees and initial delivery charges for the new tank. If they’re not actually delivering you a new tank, raise a flag and let them know. The setup fees might just be a formality.
A new company that absorbs you as a customer might end up charging you a tank rental fee even if you own the tank. This is because they don’t know you or the deal that you have with the propane company yet. When this is the case, be as cordial as possible to start off on the right foot with your company.
4. There Might Be Some Great New Benefits
When you first set up with a new company, you might be eligible for some new services and benefits you didn’t have access to before. Your new propane supplier can offer lots of other services, which is what got them to the point of acquiring your old company.
Ask if they’re able to provide maintenance services for your appliances. When your company is bought out, you might end up with a higher-quality and more comprehensive service provider. Ask around if you’re not sure how you like your new provider and see if there’s a company that can provide you the level of service you’re looking for.
5. Price Isn’t Everything
When your old company is acquired, one of the major reasons is price cutting. If your new company was able to undercut the competition by a lot, they can then attract more people, even if their services aren’t as good.
When you’re paying less, you might be sacrificing some quality in service. Since propane prices are fairly steady, you’re often getting what you pay for when it comes to propane.
It’s those extra fees that are going to gouge you. You’ll lose money when you have to pay tank rental, connection fees, or fuel surcharges.
Residential Propane Has Serious Benefits
If you’re trying to keep your home warm and comfortable with residential propane, you need to make sure that know your provider. Propane companies come and go, are absorbed and merge together. You shouldn’t be a pawn through it all.
If you’re worried about winter emergencies, here’s everything you should know about winter weather and your propane provider.