Regulation of heating oil market

doesn’t go far enough

Regulating the heating oil market will not tackle the immediate problem of high and volatile prices, which continue to hit families hard.

The government announced earlier this month that regulation would be introduced after the Competition and Markets Authority’s market study found that customers needed better protections.

However, the CMA found the market was generally competitive and did not recommend price regulation, so it will not help families needing to fill their tanks this winter.

Corinne Pluchino, Chief Executive of ACRE, said: “Heating oil bills have risen dramatically this year, and significantly more than the four per cent increase felt by gas and electricity customers.

“And with the fuel price changing from day to day, it is now extremely difficult for households to know when they should refill their tank ahead of winter.

“The CMA did not recommend regulation of the price of heating oil. Its focus was on increasing consumer protection and standards in the market.

“And while that is certainly important, it will not address the urgent issue that off grid families are facing today who are not protected by the energy price cap.

“It also does nothing to address the fact that fuel poverty is already higher in off grid households than those on the grid.

“The government should provide additional financial support to households on heating oil and LPG urgently and give breathing space to off-grid households.”

Announcing the new regulations, Polly Billington MP, Minister for Energy Consumers, said: “Energy is an essential good and people should not have to think twice about whether they’re protected in the market.”

Further information about the government’s plans, along with the findings of the CMA’s report, can be found on the gov.uk website.