Many rental properties use propane gas, which tends to be more expensive than city gas, leading many tenants to consider switching. This article explains the differences between propane gas and city gas, whether you can change gas providers in a rental property, and the cancellation process.
What Are the Differences Between Propane Gas and City Gas?
There are two types of gas used in residential properties: propane gas (LP gas) and city gas. Understanding the characteristics of each allows you to make the best gas choice.
Characteristics of Propane Gas
Propane gas is a type of liquefied petroleum gas (LPG) supplied to individual homes via cylinders. There are two types: centralized propane (shared within a block) and individual propane (installed per unit).
- Heavier than air (accumulates near the floor in the event of a gas leak)
- Contains approximately twice the calorific value of city gas per unit volume
- No supply area restrictions — available anywhere in the country
- Pricing follows a "free-rate system" where gas companies set their own rates
Characteristics of City Gas
City gas uses natural gas as its primary source and is supplied through underground pipelines. The three major companies — Tokyo Gas, Osaka Gas, and Toho Gas — account for approximately 70% of the national supply.
- Lighter than air (accumulates near the ceiling in the event of a gas leak)
- Only available in areas with established pipeline infrastructure
- Rates are relatively stable as a public utility
Why Should You Pay Attention to the Type of Gas When Choosing a Rental Property?
The type of gas significantly affects your monthly utility bills, making it an important factor when choosing a rental property.
Why Propane Gas Rates Are Higher
There are three main reasons why propane gas is more expensive than city gas.
- Free-rate system: Gas companies can set their own prices independently
- Delivery costs: Labor and transportation costs are incurred for cylinder delivery and replacement
- Free-loan equipment contracts: Equipment costs are sometimes added on top of the gas bill
In general, monthly propane gas bills are said to be 1.5 to 2 times higher than city gas.
Is It Possible to Change Propane Gas Providers in a Rental Property?
In short, tenants generally cannot change propane gas providers on their own. This is because the contract with the gas company is made by the property owner (landlord).
How to Consult Your Landlord
If you feel the gas rates are too high, first consult your landlord or property management company about reviewing the rates or switching gas providers. The following points are effective to raise.
- Comparative data between your current gas rates and the regional average
- Quotes from other gas companies
- Suggestion that high gas costs could be a reason for moving out
Steps to Switch Propane Gas Providers (For Property Owners)
- Review the terms of your current gas contract (whether a free-loan equipment contract exists and the remaining term)
- Obtain quotes from multiple gas companies
- Confirm whether early termination fees apply and the amount
- Sign a contract with the new gas company and carry out the switchover work
Is It Possible to Switch from Propane Gas to City Gas?
If the property is within a city gas supply area, switching from propane gas to city gas is possible. However, the following conditions must be met.
- The property must be within the city gas supply area
- A gas main must be buried under the road in front of the property
- The cost of connection work (approximately 100,000–200,000 yen) must be covered
- The cost of replacing gas appliances (switching to city gas-compatible equipment) must be covered
What Is the Process for Cancelling Propane Gas?
Follow these steps to cancel your propane gas service.
Cancellation Process
- Notify your current gas company of your intention to cancel (contact information is listed on your meter reading slip or receipt)
- Decide on a cancellation date (aim for 1 to 10 days in advance)
- Arrange a date for the removal of the gas cylinder and meter
- Cancellation is complete once removal is finished
When Switching to a New Gas Provider
When switching to a new gas company, in most cases the new gas company will handle the cancellation notice and removal request to the old gas company on your behalf. Simply submit the application form and letter of authorization, and they will take care of the rest.
Tips for Reducing Your Gas Bill
Even if switching gas providers is difficult, you can reduce your gas costs through everyday efforts.
- Optimizing water heater temperature: Avoid setting the temperature higher than necessary
- Reducing reheating frequency: Coordinate family bath times
- Installing a water-saving showerhead: Can reduce gas consumption by 20–30%
- Efficient use of the reheating function: Use insulating bath sheets
Frequently Asked Questions (FAQ)
Q. Can tenants change their propane gas provider?
A. Generally, no. Since the gas contract is held by the landlord, tenants who wish to switch must consult their landlord.
Q. How much difference is there in monthly bills between propane gas and city gas?
A. It varies by region and provider, but propane gas is generally 1.5 to 2 times more expensive than city gas.
Q. Are there cancellation fees for propane gas?
A. If you have a free-loan equipment contract, cancelling within the contract period may result in an early termination fee for the remaining term.
Q. What can you do if city gas is not available in your area?
A. It is important to get quotes from multiple propane gas companies and choose one with fair rates. Switching to all-electric is also an option.
