Propane supply agreements

Propane supply agreements

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When choosing a propane company, it is advisable to compare detailed quote between different suppliers in your area to decide on the one that best suits your needs.

As you do this, you should know that propane companies require customers to sign propane supply agreements framing their services and what you pay for them. In propane supply agreements, you find the general conditions for propane deliveries, maintenance and repair services, fees and charges, safety, equipment, etc.

Having a reference for your propane supply

It is important to have an idea of the type of contract you will sign when making a deal with a propane company. This is especially true insofar as the contract will serve as a reference should any dispute arise between the customer and the propane company.

Furthermore, propane companies are more or less free to decide on what price they charge for each service they offer and little information is available openly. This is all the more reason for new customers to ask for as many details of the agreement to be written down as possible.

Company and customer responsibilities

Generally, propane supply agreements establish what the propane company is liable for and what customers are responsible for (e.g., yearly system inspections and payment). This is usually accompanied by disclaimers should consumers not respect their obligations.

Products offered and conditions

Similarly, propane supply agreements specify what conditions apply for equipment (e.g., maintenance, rental or purchase), repairs (usually at a local hourly rate), pricing (determined on a case-by-case basis but the agreement will list the factors that may contribute to how it is decided), propane delivery (automatic or will-call, access to property) and billing (whether your account is paid in a single or multiple installments).

Fees and charges

It is particular important insofar as it lists the fees and charges a propane company may apply. These usually offset costs (e.g., safety and hazardous materials training for employees and customers), deliveries (e.g., asking for an emergency delivery), special services (e.g., having a tank removed) and payment (e.g., late payment).

Not respecting, ending, changing or disputing your contract

You should pay particular attention to what you might be charged if you pay your bill late, how long the contract is valid for and what the process is should you need to terminate your contract, what the procedure is to change your contract (your situation might change), and what the rules are should you disagree with your propane company about the way part of your contract is being implemented.

Compliance and safety

Your propane supply agreement also underlines what laws and regulations your propane company operates. In terms of safety, propane supply agreements usually specify that unless all company recommendations are respected they are not liable for damages, injuries or deaths.