Like the Idea of a Heating Oil Monthly Savings Scheme?

June 21, 2010 | Fuel Poverty

Gas and electricity suppliers do something similar; phone providers do it and now BoilerJuice could be doing it too… if you’d like us to.

Basically, the plan would be for you to pay for your heating oil on a monthly payment basis so you build up a ‘Tank Account’ of savings to go towards each heating oil purchase.

It’s not a direct debit scheme; instead we’d charge your debit card with the same pre-agreed amount every month. You only need to tell us your debit card details once. And if you ever want to cancel, you can – at any time.

The great thing about a Heating Oil Savings Scheme is that it means you don’t have to pay for your oil in one go. And if your tank is particularly big, it could soften the blow quite a bit!

Also it makes sense to pay a smaller amount all year round rather than a hefty sum in the depths of winter when you suddenly realise you’re running low on heating oil – especially if that happens around Christmas.

How much you pay per month would be based on your annual heating oil usage to date divided by 12 – so unless your heating oil usage has decreased dramatically, there wouldn’t be any risk of you over paying. However if, come the end of the year, we find you have overpaid you’ll get the option to carry it forward to the next year or get a rebate.

But what else would you get out of us hanging on to your cash rather than it sitting in your bank account earning interest?

Perhaps we could give you an incentive – like offering a discount on heating oil prices to thank you for agreeing to pay monthly in advance. Or maybe you’ve some other ideas on how this could best work for you.

Our new Heating Oil Savings Scheme is still very much at ‘drawing board’ stage, so we’d welcome your suggestions on (a) whether you think it’s a good idea and (b) what (if any) incentives you’d like to see to encourage you to sign up for it.

What we don’t want to do is suddenly ‘dump’ a Heating Oil Savings Scheme onto you which isn’t what you want – or which you feel could be done differently or better. So we’d welcome your suggestions.

Over to you – we’re all ears!

Update: Thank you all for your comments. Based on your answers we have set up the Boilerjuice monthly savings scheme. Comments are now closed for this post.

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  1. This is the only reason I haven’t yet signed up with boiler juice !

    I currently have a monthly payment account with an oil supply company and would be pleased to switch over to you if you also had an “easy-pay” scheme.

    As you will be earning interest on my money, it seems only reasonable to expect a discount off your “normal” oil price under such a scheme.

    Pls let me know if/when it goes live !

  2. great idea please get it up and running asap as im due a top up in a few months!!

  3. good idea,let me know if and when the scheme starts up.

  4. Would be very interested have been with another company for 25 years and they are not prepared to match your price so I have just cancelled my Direct Debit with them, would much rather pay monthly

    please contact me when up and running, need to order soon

  5. This sounds like a great idea, the only problem I see is this. Over the last 3 years I have filled my tank 7 times. We have 6 companies that will deliver to me. Each time I need oil I check Boiler Juice, then also phone each of the supplyers. every time at least half of them are cheeper that what Boiler Juice have been able to offer. Each time ists been 2p or more, on one occasion it was 3.3p on an 1800L tanks thats quite a bit. Sorry Boiler Juice, not good enough.

  6. This is a great idea. Lots of other companies do this but I would wait till you start up a system. Its great to be able to spread out the cost. Possible incentives could be discount of additives or boiler services?

  7. I think this has the potential to be good. I have resisted any kind of savings scheme with one oil company because I don’t like the idea of being tied to one supplier – suspecting they might not charge me a competitative rate. However assuming you can continue to shop around and get the best deals from a range of companies through bolier juice then I would be really interested in this. Given you will be getting a “guaranteed income” I think a discount would be reasonable. All other energy suppliers provide discounts for monthly payment.

  8. hi it sounds a good idea an extra discount would be a good thing to make customers want to join so let me no when it starts

  9. This does sound like a good idea, how long before its up and running.

  10. These savings accounts are all a con, unless they guarantee a discount over the normal price as an incentive. What’s the advantage of paying money over to suppliers before you have to. They just sit on it and earn interest on it. Why not just open a savings account yourself and pay the same amount into the savings account each month that you would have paid over to the supplier. Same effect but you get to keep the interest.

  11. Agree with the others who welcome the scheme and suggest a discount on the oil prices for those taking part in the scheme on top of the normal savings when group/bulk buying.

    I personally don’t object to Boilerjuice making a small profit on the sales, as they do the work of checking the prices ….. I don’t have time to ring around.

  12. I think its a great idea.It will certainly enable me to spread the cost of my oil over the year.Bring it on Boilerjuice and let me know when its up and running.

  13. Most of these schemes require you to pay up front for your first delivery and then start paying a DD. I agree with those who have said it would be better to open a savings account because you will earn the interest instead of the oil co. But what would be of interest is a monthly payment scheme where you don’t have to pay for your first fill up – effectively this is offering a credit scheme. For this I wouldn’t expect a discount but it makes things easier for people who move into oil fired homes.

    I have just moved into an oil fired home and on top of all the usual moving costs I now have to find around £750 to fill up my tank (which is empty)! I can’t find any company willing to offer credit so once again the credit card company makes the profit!

    If boilerjuice were to offer such a scheme I’m sure there would be many takers, but if its just another saving scheme a bank account, or equivalent discount would be preferable.

  14. I would be interested inthis if I didn’t have to pay a heafty amount up front but it was run on a credit scheme

  15. If there is a discount on offer then I think its a great idea. Otherwise you may as well use a savings account. Thats what I currently do. I have an account with my local credit union.

  16. We would sign up for such a scheme, especially if you offer a discount or say a free bottle of boilermax.

  17. definitley interested anything to ease the lump sum bill

  18. What protection will be provided if Boiler Juice was to go bust? It’s happened to some banks and it’s happened to other savings schemes like Farepak.

  19. i would definately be interested as a single parent spreading the cost is really important at the moment we are with another oil supplyer whivh i think is expensive they do do a monthly scheme but again it is costly interested to see what boiler juice come up with its a very competetative market ill keep an eye on the website

  20. Hi I am interested in your monthly payment scheme

  21. I am in agreement with this and like others have resisted joining any similar scheme with an individual oil company through fear of being tied to one supplier and possibly not benefiting from the “best price”. Please let me know when you are ready to start this new scheme as I will definitely be willing to join.

  22. I think the idea is great also you could include at a extra £!! month for a boiler service yearly as this would be a great way of making sure that when you get your oil your boiler is in tip top condition

    • If I save my money in my bank account I can get 3% interest and choose the cheapest supplier at the time of delivery. Your proposal has obvious attractions but must at least compensate me for that 3%.

  23. This is what I currently do using a savings account. A monthly amount accumulates and any residual balance is interest earning. Unless the Boilerjuice scheme offers an incentive to recognise they are holding your cash (& benefiting financially from it) customers will be better off using their own savings account to build up a reserve. A fixed % discount on any purchase would be sufficient or cashback offered on placed orders. That aside I think its a wonderful idea and subject to it being worth my while I would certainly use the facility.

  24. I would like to sign up to it also when it is up and running as long as your prices are competitive,especially if you offer a discount for those signed up, it will help us get a better price and more people would join, giving more custom to you.

    We need to look to see why companies like Tesco have done so well, they have higher profits than thei competitors by reducing there prices but have reported a huge turn over due to the volume of customers getting a good deal.

    I have orderd from you before and was about to sign up to a sceme with another company but I think i will hold fire if you are planning this soon.

    please let me know when this could possibly happen?

  25. A great Idea !! But a small incentive to save with you would catch more peoples interest ie; Discount on orders , also not trying to enforce a set amount on people of what they should save , not all people can afford very high amounts , and this is why i have opted out of these schemes before , flexibility here by yourselves is the key , Thanks .

  26. Hi

    I think this would be a great idea, the cavets would be around

    1) The protection of the monies paid in – who holds it and where does it lie

    2) What discount or incentive is offered, savings accounts with banks do offer so little protection on interest that a guarantee of a % off the total bill would be an incentive?

    3) There would be no penalty for removing the funds (save the interest) should you wish to withdrawl your funds.

    Would the offer of a free annual service be enough for people to consider this??

    Anyway a great idea especially as the price has just rocketed £75 on my usual £214 ish bill

    Dave

  27. Definitely a good idea. Would be very keen to sign up when it is up and running. Considering the present weather and the way these winters seem to be going it just seems to make a lot of sense.

  28. Knowing the current fluctuation of oil prices at the moment it does come as a shock sometimes. I think that such a scheme would be an excellent idea and I would participate.

  29. A very good idea. I know my friend has an account with Watson Fuels and they pay 4% interest on credit balances.

  30. This is a good idea and I would be prepared to sign up provided that the incentive(s) offered would be at least equivalent to interest earned in a savings account after tax.

  31. I’m interested in paying monthly installments, but would only want to pay for what i ordered, because it vary’s greatly, as does the price of oil. It would have to be interest free too. Let me know when this is up and running, I need to order soon.

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