Gas Service Charge Explained
Many think that the gas service charge is rental. It is not.
You will normally only see a service charge* once a year, as it is an annual fee.
It will typically appear as a separate invoice.
Why is There a Service Charge?
Elgas typically provides LPG 45kg gas cylinders for our customers’ use.
We maintain ownership and responsibility for the cylinders at the customer’s property.
As owner of the cylinders, we are responsible for any needed maintenance and compliance with all applicable safety regulations.
If the cylinders ever need repair or replacement, we do that with no additional charge to the customer.
The Service Charge helps defray our costs associated with cylinder acquisition, maintenance, insurance and periodic testing that must be performed to ensure that the cylinder is in a safe condition.
As it relates primarily to the cylinders, it varies based on the number and type of cylinders you may have.
No Rental Charge
The Service Charge is not a rental fee.
We do not charge “rent”.
Less than Natural Gas Fees
The Service Charge is very similar to the “Supply Charge” or “Facility Fee” billed by natural gas companies, except that our Service Charge is usually less.
In addition, unlike natural gas suppliers, we have NO meter reading fees, payment processing fees, early termination fees, meter testing charges or account establishment fees, all of which are common with natural gas suppliers.
In fact, our fees are so much lower that, for certain customers, using LPG can be less expensive than natural gas.
*Please note that the above relates to the supply of residential gas in the majority of circumstances and when sourced directly from Elgas or an Elgas agent.
Commercial supply terms may be different.
Customers who purchase gas from a distributor are subject to terms as set by the distributor. This may or may not include a service charge from Elgas.