Complaints

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• Initial Complaint

  Date:10/23/2024

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  We pre-bought propane at 1.65 per gallon. On 10/21/24 I called and asked what the current price of propane was if you owned your own tank. I was told 1.40 per gallon. I told the lady on the phone that I had prepaid for gas and did not want to use that since gas was cheaper now. The lady said ok. On 10/22/24 my propane was delivered and I was charged 1.65 per gallon. I called the company and spoke to *******. I was told that since I had pre-pay that is what I had to pay. My wife, ****** then called back and asked to speak to the manager. She was transferred to *****. ***** also told her that the pre-bought price was what you were charged. She requested a refund of $65.63 the difference of 1.65-1.40 =.25 x ***** gallons that had been delivered. ***** assured her that the wording on the contract would be evaluated to make sure it was clear. She had explained to him that other local companies honored the cheaper price. He told her that was not their policy. She was unaware of the conversation I had before I ordered gas. Once I told her that she asked me to call back and pay for the delivery we received today and just credit our prebuy bank back. ***** informed me that he would have to see if he could reverse those charges. He then called me back and said unfortunately as soon as the gas was delivered the transaction was processed and he could not have it reversed. This is outlandish to me. You cannot recredit an account that is within your own facility and let me pay for what I received today? He also told me that the contract clearly stated that I had to use my pre-pay before I could buy gas at the current price. He did send me a copy of the contract, which I have attached. I disagree with their interpretation of the contract. No where does it say that I cannot choose to pay for my gas instead of using my pre-pay.

  Business Response

  Date: 10/30/2024

  On October 21, 2024, the customer contacted our office and received a quote for the current market price of propane, which was $1.40 per gallon. This price is applicable only to customers without an existing pricing agreement. Customers with a Pre-Buy agreement are charged according to the terms of their contract, which in this customers case was $1.65 per gallon for the delivery.
  
  The customers wife subsequently spoke with our Operations Manager, *****, who clarified the reasons for the higher charge. In accordance with industry standards, our Pre-Buy Program stipulates that propane purchased under this agreement must be used before customers buy ******************** at market rates. This policy safeguards both the customer and our company from potential disputes.
  
  When enrolling in the Pre-Buy Program, customers secure a fixed price for a designated volume of propane. While this may lead to varying costs throughout the year, the primary benefit is protection against market price increases, particularly during winter shortages. For our company, this program ensures guaranteed sales during peak demand periods.
  
  The customer has utilized this same program in previous years. During their conversation, ***** also informed the customer about our Price Cap Program, which allows customers to purchase ******************** at market rates until reaching a set price cap, after which they pay no more than that cap regardless of market fluctuations. The appeal of the Pre-Buy Program lies in its lower pricing compared to the Price Cap Program, although they operate under different terms.
  
  It is important to note that our Pre-Buy agreement clearly states: NW Ohio Propane agrees to provide propane between October 1 and April 30 to the above-named customer at the agreed-upon price for the specified quantity. Once the balance of Pre-Buy Pricing is exhausted before April 30, the customer will be billed at the current market price on the day of delivery.Given the customers understanding of the program they signed, we believe the transaction is binding and cannot be reversed. While we recognize the desire to purchase market gas while enrolled in the Pre-Buy Program, such an approach would undermine the programs integrity. The Price Cap Program is specifically designed to address market price fluctuations.