Our Promise to You
Many of our customers with fixed price contracts have asked whether we could amend their contracts to reflect today's lower market prices. Unfortunately, a contract is a contract - and is binding by law. Unless you have downside protection, you are required to pay us the agreed-upon price, and we apologize for any inconvenience.
The good news is, our price protection customers also have the value-added advantages of automatic delivery, even monthly payments and the peace of mind that comes with uninterrupted warmth. Most of all, you have our promise to you that we will always be committed to your comfort for many winters to come.
For a PDF of MOC's "Heating Oil Contracts & You" brochure, please click here.
How Should I Buy My Fuel?
By planning ahead with their energy budgets and conserving energy wherever possible, customers can have more control over their heating bills.
This Customer Information section covers the various Oilheat payment and delivery plans now available and offers some insights on service plans. We hope this easy-to-understand Question and Answer format gives you the straight answers you've been looking for to make an informed choice.
What is price protection?
Most homeowners pay for 75% of their annual heating costs over a short three-month period. To help customers struggling with rising energy costs, especially during the winter, many Oilheat dealers now offer convenient payment plans that can ease the financial burden.
To provide price protection, dealers contract for fuel oil and price insurance almost a year in advance, lock in a lower price, and pass the savings on to their customers. Price protection plans include Price Caps and Pre-Buy plans.
^ top
What is a Price Cap Plan?
As opposed to paying a fixed price, a price cap (per gallon of oil), allows for market changes. You can lock in a low price for the entire heating season with a Price Cap, which is the highest price you will pay, no matter how high oil prices may go throughout the heating season. If the retail price goes up the customer pays the cap price, but if the retail price goes down the customer pays the lower price. You'll have the security of never paying more than the capped price.
^ top
What is a Pre-Buy Plan?
This is a free "lock-in" program that can help you manage your energy bills. You purchase your heating fuel in advance of the heating season, at a lower pre-season price (there is a minimum purchase required). Most Oilheat dealers require a minimum purchase of 500 gallons and that you be an Automatic Delivery customer.
^ top
What about paying a Fixed Price?
Some Oilheat dealers may offer a fixed price plan. Under this plan, the price you pay for oil is fixed for a given period of time and will never go up or down. If the retail price goes up the cost to the customer remains the same, but if the price goes down the customer does not benefit. Fixed price plans are good for people who need to know how much their oil is going to cost throughout the season so they can budget the rest of their expenses accordingly.
^ top
What is a Budget Plan?
A Budget Plan is a proven shield against price fluctuations - your energy expenses are under control, even if temperatures drop or fuel prices rise.
Upon credit approval from an Oilheat dealer, you may enter into a budget plan each spring for the following heating season. Oilheat dealers then take your yearly energy costs and divide them into equal monthly payments. Your annual costs are determined by analyzing your past fuel usage. At the end of the budget season, your Oilheat dealer will either credit your account for the following year or bill you for the remaining balance due. Budget Plans are free of charge, there's absolutely no cost to join.
Some dealers spread your annual heating cost over 10 equal payments from August to May, while others may offer plans with 9, 11 or 12 payments. Either way, a budget plan takes the guesswork out of bill paying and can take the worry out of winter for most homeowners.
^ top
Why should I enroll in a Budget Plan?
It's a great way to take control of your monthly expenses. You'll have the peace of mind and convenience of knowing exactly what you'll pay every month. Without a budget plan, your monthly bills can pile up, especially during the holidays when you can least afford it.
In addition, some Oilheat dealers offer cash incentives for paying your bill on time. There's no finance charge when you make timely monthly payments … and you can even add your service and equipment costs onto your monthly payments, allowing you to pay all of your bills in one convenient lump sum.
^ top
What other benefits come with Price Protection and Budget Plans?
Most dealers offer Automatic Delivery for their price protection, budget and service plan customers, and some offer a "No Runout Guarantee".
^ top
What is Automatic Delivery?
Customers with Automatic Delivery are not responsible for monitoring their tank or notifying their Oilheat dealer when they are low. Heating oil deliveries will be made according to a schedule set by your Oilheat dealer. Your Oilheat dealer is responsible for making timely deliveries based on the size of your home, the size of your oil tank, your estimated consumption and the day-to-day weather conditions. That means no more worries about measuring your tank or running low on fuel.
^ top
How Will My Oilheat Dealer Know When I Need An Oil Delivery?
Most Oilheat dealers use 'degree day' technology and estimates based on your tank size and past consumption to schedule regular refills. They even take the weather into account when severe winter weather is forecast to make sure you will not run out. In the rare event that you do run out of oil, on-call drivers will guarantee a fast fuel delivery and re-start your system on the spot.
^ top
What Is Will-Call Delivery?
Some customers want to monitor their own consumption and schedule their deliveries accordingly. You must notify your Oilheat dealer 48 hours before you need a delivery. Customers are urged to order their oil when the gauge reads no less than 1/4 of a tank. Oilheat dealers are not responsible for "run-outs" resulting from customers who fail to give the required two-day notice.
^ top
What is C.O.D. (Cash On Delivery)?
Some customers choose to pay for their deliveries as they receive them. You must be home when a delivery is made and pay cash for that delivery. Some Oilheat dealers will not accept personal checks for C.O.D. deliveries. If you do not have payment at the time of the delivery, the delivery will not be made.
^ top
Your Oilheat Comes With Reliable Service.
What is a service plan?
Also called maintenance plans or contracts, service plans are a convenient way to cover the annual costs of maintenance, repairs and replacement parts for your heating system. You pay an annual fee to cover the yearly costs of repairs and maintenance on your system. During the life of this agreement, at no extra charge to you, an Oilheat provider will repair or replace specified parts of your system that may become defective due to normal wear and tear. The labor associated with these repairs is included at no cost to you. Some comprehensive plans cover emergency service 24 hours a day, 365 days a year.
^ top
Are all service plans the same?
The terms of service contracts vary, but generally a contract entitles you to an annual system maintenance visit, emergency service and free replacement of certain parts.
Dealers offer different levels of coverage to suit your budget and needs. Service plan coverage ranges from basic parts service and annual tune-up to all-inclusive, top-of-the-line plans that can cover the repair and/or replacement of over 100 parts and include replacement allowances for oil tanks, boilers, heat exchangers or furnaces.
^ top
What are the benefits of having a service contract?
A service contract shields you from unexpected repair costs and includes efficiency-enhancing system tune-ups. An annual system maintenance visit can be crucial to how well a system operates throughout the winter and can provide valuable protection for your home comfort system and peace of mind for you and your family.
Annual cleaning, tuning and testing help increase your heating system's performance and longevity. In fact, tests conducted by the Department of Energy have proven that a tune-up can lower a homeowner's annual heating bill by as much as 10 percent.
Service plan benefits include prompt, around-the-clock emergency service, as well as "priority response" over those customers not enrolled in a plan. Most service contracts come with free Automatic Delivery.
Some Oilheat dealers also offer Loyalty Credits to reward loyal customers on their service plans. These valuable credits are earned each year and can be used toward the purchase of a variety of heating and cooling equipment or repairs.
^ top
Home
