It should not be hard to switch propane suppliers!
There are several reasons you might choose to switch propane companies. Maybe the company is charging too much for propane. Maybe you were left without a propane delivery on a cold winter’s day. Maybe you are just fed up with poor customer service.
But the bottom line is, it shouldn’t be a big hassle for you. The right company will be flexible and help you make the change. Being an educated consumer can help make sure you make the right choice and don’t have to make it again!
1. Do you own or lease your propane gas tank
If you own the propane tank, switching propane companies will be easy. If you lease your tank from the propane company, it’s going to be more difficult.
If you lease your propane tank and want to switch companies, you have a few options. When you lease your tank, you can only have the company that owns it service your propane. So depending on how the propane companies deal with it, here is what you might encounter.
Uninstall and reinstallation – Company 1 might want their propane tank back. In this case, they will have to come to your house and unhook the propane tank. You will want to schedule your new propane company to install the new propane tank same day to avoid interruptions for you. While switching above ground propane tanks is fairly simple, switching propane companies when you have an underground propane tank can be a nightmare!
Purchase and resell propane tank – It is most common for companies to require you to purchase your existing propane tank from them if you want to switch propane companies. You can choose to own your propane tank henceforth, which places the liability on you. Or you can resell the propane tank to the new company, Company B, and lease the tank from them. When you lease your tank, the liability and service fall on the company.
Purchasing and reselling your tank to the new company is far more convenient than a reinstallation, but it might set you back a few thousand dollars for a short period of time. After you purchase the tank from company 1, you will have to present the new company with proof of ownership. They will then purchase it from you.
Sell propane tank directly to new propane company – Propane companies that are more flexible will often offer to sell the propane tank directly to the new company of your choosing. If this is the case, good for you! You don’t have to be the middle man in the process. Unfortunately, this is not a common situation when switching propane companies.
2. What are the early termination costs for switching propane companies
If you want to end your contract early, you will probably have to shell out a little extra. If you lease your propane tank, termination fees are usually around $100
This may include a propane tank pump-out fee (tanks can’t be moved if they’re above 5% capacity), tank pick up fees, and maybe a close out fee.
3. What are the startup and delivery fees for the new company
Like we said, you want switching propane companies to be easy! But this transaction usually has a few extra fees attached with it. Companies may charge a delivery fee, an installation fee, a tank rental fee.
If you need to install a new propane tank, as your new supplier if they will offer a free tank installation and hookup for new customers. The investment is worth it to them!
4. What does your new propane gas company offer in addition to propane
Ask if your new propane supplier also offers maintenance services for propane gas appliances. If you’re switching companies, switch to a higher quality and more comprehensive company!
5. Low propane prices don’t always equal a high quality propane company!
In the propane industry, you often get what you pay for. If Company A is advertising rock bottom propane prices, there is likely a catch. It’s common for companies to reel you in with low prices, but make up the cost with hidden fees on the bill. Tank rental fees, reconnect fees, fuel surcharges, off-route delivery fees. You don’t want to see these add on on your monthly bill!
Companies that charge a little more for propane might partially build these fees into their price. Their prices are often more steady as a result.