FAQ’s about pricing Programs…”Are they for me?”

FAQ’s About Pricing Programs…”Are they for me?”

1.    Why should I enroll in a program?

• Predictability - different plan choices offer different levels of predictability, but all choices give you more predictability then just “paying as you go”.
• Cash flow - A pre-buy plan will “buy down” your price and probably save you more on your fuel than that money will earn you sitting in the bank. A budget plan will spread your heating costs out over the whole year, rather than having to compress those bills into the heating months.
• Price protection - Without price protection, market volatility can take a huge chunk out of your budget with very little notice. A plan that includes price protection can protect you from that volatility and keep your budget in check.
• Automatic delivery - Being on a program allows customers to enjoy the freedom and convenience of automatic deliveries without the hassle of having to worry about when the last delivery came, and can I pay it on time? By planning ahead with a program, you no longer need to dread delivery day.
• Flexibility - Our plans are designed with options and flexibility and are custom tailored to your needs, as different things are important to different customers. This does mean making a few decisions about your needs, but who knows your needs better than you? Don’t worry, enrolling is a simple process and we’ll help you through every step.
• Security - High fuel costs are a burden to everyone. By planning ahead with a program you can minimize the impact of those costs and ensure your fuel will be there when you need it.

    2. How do I find out more about these programs?

PLEASE call us! We know that this matter can be confusing and we’d be happy to spend time discussing your question with you over the phone or in person. You spend a lot of money on your fuels and it is very important to us that you understand what options are available to you.

3.    When should I enroll in a pricing program?

Program terms are July 1^st to May 31^st, which simply means that is when the program is in effect and when deliveries will be made, however enrollment is available anytime. Since market pricing is changing all the time, “when” you lock in can have a considerable impact on your pricing if you choose a fixed or capped price program.

4.    Why do I have to make so many choices to enroll in a plan?

The reason that we don’t push a 1 dimensional program with a catchy name is simple. Different customers have different needs and wants. Every option that we offer is a direct result of customers asking for it.

5.    Why do I have to sign a contract?

For some programs Maine law requires a contract. We also find that it is the best way for us to communicate with each individual customer on the commitment that we are making to them, as well as their obligation. We have done our very best to make the contracts easy to understand, but if you have any questions on the contents or a contract please call us before you sign it!

6.    Why do I have to choose the gallons to put on my contract?

The number of gallons you use obviously is a key factor in your total heating costs for the year  and is where designing a successful program should start. For fixed and capped price plans, we have to buy your product by the gallon with contracts from our suppliers. It is only prudent that we would resell those gallons with similar terms. We will gladly assist you with deciding on how many gallons to put on your plan.

7.    What happens if I use more or less gallons than what are stated on my contract?

This depends highly upon what type of program you enrolled in. It should be explained in the contract but please call us with any questions. 

8.    Why does my fixed price contract say that I may have to pay a penalty if I don’t use all of the gallons?

We have signed a contract to buy those gallons from a supplier at a fixed price as well. We have no choice but to purchase them or pay a penalty. We are simply passing this obligation on to the customer. We would only charge such a penalty if additional costs were incurred by us. Some dealers require you to pay for all of the oil on the contract even if you don’t take delivery of it all! We do not.

9.    What happens if I move while enrolled in a program?

If you move to another location within our delivery area, we can likely transfer your contract to your new location. Another possibility may be to transfer your contract to the buyer of your home. If not, most contracts provide for a nominal cancellation fee, and fixed price contracts have a penalty provision that may apply to the unused gallons.

10.Why doesn’t my fixed price go down if prices go down?

For the same reason it doesn’t go up when prices go up. Our purchase cost has been locked in and doesn’t change when prices go up or down. 

11.Why is there an up front fee for CAP plans?

A CAP plan is basically a fixed price plan with “downside insurance”. That insurance has to be purchased by us upfront to cover your contract. This insurance pays us back when prices fall which allows us to lower your price. During the dreaded winter of 2007/2008 when prices began the season at record highs & then fell dramatically, we had many CAP customers that had enough credit on their account at the end of the season to buy over half their oil for the following year!

12. What if I use more than one product?

 No problem. You can do separate contracts for each product, or contract for one and not the others.