More protection for heating oil

users as market set to be regulated

Heating oil users may have some new protections after an investigation found the current fuel market to be in need of proper regulation.

The Competitions and Market Authority (CMA) began looking at the heating oil market earlier this year, after events in the Middle East led fuel prices to skyrocket.

Up to 1.5 million homes across the UK rely on heating oil, with a large proportion of those situated in rural areas.

As well as increasing bills, some homes had existing orders cancelled, leaving them no option but to re-purchase at the new higher price.

The CMA has said while the market is broadly competitive, there is clear variation in the levels of protection offered to homes connected to the gas grid and those that rely on heating oil.

Its report recommends that a new regulatory regime be introduced, which would require suppliers to meet minimum standards and offer customers a choice of purchase options, including paying with instalments.

A register of households considered most vulnerable to price rises will also be created, which should ensure low-income families and people with disabilities have extra protection.

In addition to the new regulatory powers, the report outlines measures to compensate households whose heating oil orders were unfairly cancelled.

The regulator has said that any suppliers who refuse to provide compensation should face legal action.

The government is now reviewing the report and must decide which recommendations it will take forward.

ACRE is continuing to present proposals to the government for support for households with heating oil bills as winter approaches.

After slowing dropping since a peak in March, the price per litre is now 30 per cent higher than it was at the start of July.

The full report of the CMA’s investigation can be seen online at www.gov.uk/cma-cases/heating-oil-market-study.