Fair Prices and Full Service: How it works.

People's Discount Heating Oil Service operates like a buyers club or a co-op. We use the buying power of our 12,000+ members in Massachusetts and Rhode Island to negotiate better prices for consumers.

Our program works because our contracts with dealers limit how much our dealers can charge the retail consumer above the wholesale price they pay for heating oil. Over the past twenty-six years, members using our program have saved between 15 and 30 cents per gallon versus the regular retail price, while enjoying the benefits of full-service dealers.

When you join People's Power & Light, we will assign you to a local, full service oil dealer from our network. We’ll find the dealer that best fits your needs. Once you’ve been assigned a dealer, you can take deliveries or receive burner service anytime.

How good are the savings?

Typically, our members combined save over $1 million per year! Savings vary from year to year, in some years our members save as much as $300. Our staff collects the wholesale prices and establishes our prices every day. You may call at anytime or visit this website to see what price your dealer is charging for that day. Once you are a member, you'll have access to our special member's area, which will show your price and price history. (TOP)

Peace of mind, Full Service Discount

As a member of People's Power & Light, you can be confident in your dealer. All of our dealers are full service, with a live voice answering the phone during the business day and staff on call 24 hours a day, 7 days a week. We have checked references on all of our dealers and have made sure that they do not have a history of complaints with the state Attorney General's office and the Better Business Bureau.

You can choose to take a full service contract with your assigned dealer. Make sure you ask your dealer for the People's Discount Service Contract Price. Automatic delivery plans are also available to those that establish credit with the dealer. (TOP).

Delivery Options

The two basic options are Automatic Delivery or Will Call Delivery. Automatic Delivery puts the burden of keeping your oil tank full on the dealer. They estimate your consumption with their computer using weather data and fill on their schedule. Customers need to have an established credit account or a balance with the dealer to qualify as an Automatic Customer.

Automatic Delivery is the most efficient mode for delivering oil, so WE URGE ALL MEMBERS TO STRONGLY CONSIDER BECOMING AUTOMATIC CUSTOMERS. With efficiency being our key selling point with dealers, the more Automatic Customers we have the better it is when we negotiate new contracts.

The second option, Will Call Delivery, puts the burden of keeping your oil tank full on you the consumer. We urge you not to let your tank go less than a quarter of a tank of oil, particularly during periods of cold weather. When you need oil, you are required to call and place your order with your dealer. Most dealers require 24 to 48 hours notice before they will deliver to a Will Call Customer. Unless you have a balance or credit with your dealer, you will also need to be at home when the delivery is made. If you are not there when a truck stops by, you might be subject to a surcharge for them to return, or they may refuse future delivery requests.

Being a Will Call Customer is best for consumers who want to monitor their oil tanks, like playing the market, or are unable to establish an account or credit balance.

Minimum deliveries for Will Call Customers are 100 to 150 gallons depending upon the dealer. Cash is often required for the first delivery. Some dealers take credit cards and most accept personal checks. Please confirm what the dealer expects in terms of payment.

Please remember that dealers are unable to make deliveries “by appointment” for all of their customers. They make dozens of deliveries each day. Many can give you a time frame within a couple of hours of when they may come based on the route for the day, but they cannot schedule to the hour. Please be aware of that when scheduling a delivery. (TOP)

Payment Options

Related to delivery options is the payment option. There are three basic payment options: Billing, COD and Budget. The dealer you are assigned will outline their terms and conditions. We will also outline them for you in our Welcome Letter.

Billing can give a consumer up to 30 days to pay their oil bill. Customers may take an additional 2 to 6 cents per gallon off their bill if they pay within 5 to 10 days. This is called the Prompt Payment option. The credit portion of our membership form needs to be filled out in order for a dealer to do a credit search in order to open a credit account. We do nothing with your credit information except relay it to the dealer and keep it in our dealer file.

COD means Cash On Delivery. Often cash is required. Most dealers, however, will accept personal checks. Some also accept credit cards. The dealers determine the requirement. The advantage to COD is that the additional 3 to 5 cents have already been discounted from the bill. The disadvantage is that you need to have a credit balance with the dealer, or be present with cash when the delivery is made.

A Budget Plan customer is the most efficient option available. The dealer considers your annual consumption and establishes what they feel will be a fair average price for the coming winter. Then they come up with a total cost for the season. Most Budget Plans call for ten monthly payments. Oil is delivered automatically and charged to your budget account.

Twice during the season, Budget Plans are reviewed to see if you are paying too much or not enough. The dealer will then adjust your budget payment accordingly. We have input with the dealer for the first adjustment in October. The dealer has the option in January to adjust their budget figure. Often, the budget amount turns out to be more than what you actually spend. You may end up the year with a credit balance that the dealer will happily return to you or they may apply it towards your next year’s budget plan. Occasionally, you will have a final larger payment to make as well.

Using a Budget Plan makes using oil most like a regular utility like your phone or water bill. Your cost is fairly even and there are no nasty huge oil bills to sneak up on you. It also helps our dealers plan, reduce their costs and become more efficient. WE STRONGLY URGE ALL MEMBERS TO CONSIDER ESTABLISHING A BUDGET ACCOUNT with our dealers.

Budget plans are seasonal and dealers try to have them established during the summer months. If the season has begun, you may have to pay a large initial payment to catch up. (TOP)

Service Options

A very important component of our membership is that we contract with full service oil dealers or have other service options. They provide repair and replacement service as well as 24/7 coverage. How you use the service offered by our dealers is an important consideration.

Part of our contracts with dealers is establishing the cost of a Service Contract. The cost of a contract depends upon the dealer. Each contract covers a defined set of service and parts. Every policy covers an annual Tune-Up. The dealer will provide you a copy of their contract upon request. Be sure to review it with your dealer before signing up. Contact our office (861-6111) for service options in your area.

Signing up for a Service Contract may not be the cheapest option for consumers. Getting a service contract is a form of insurance. Dealers are figuring the cost of a Tune-Up, plus the chance that you will call them for service. If you have a newer system, just paying for the Tune-Up is your cheapest option. If by chance you need an emergency service call, the dealer will send a service technician as long as you have an established account with them. You will have to pay then, but if you have gone two years without a service call you will have already saved money ($80-120) by not having a service contract.

If your heating system is very old or in disrepair, the heating oil dealer we assign to you may not offer a Service Contract. That is the dealer’s right. If your system is denied a Service Contract, we strongly recommend that you take steps towards addressing the problem. If the dealer recommends getting the system replaced, ask for a bid from that dealer and get two more bids.

If the dealer recommends a repair and is offering to do that repair for a good price, make the repair as soon as you can. If the repair quote is high, you may want to get a second opinion.

For most systems, a Service Contract does make sense. But do not buy the Service Contract until you have read it. It is normal practice in the heating oil industry to exclude certain parts and repairs from service contracts. By reading the contract before you buy it, you can avoid misunderstandings. A good service contract is one that is clear and competitive with those offered by other full-service dealers.

Whatever choice you make we highly recommend YOU ORDER A TUNE-UP EVERY YEAR. The saving gained in efficiency and by reducing future service calls more than pays for a tune-up each year.

Things you need to know about your furnace: Happy Furnace