CMA Urges Heating Oil Rules, Seeks Compensation for 1,700 Customers

Q: How did a distant Middle East war leave thousands of British families facing a winter without heating?

A war in the Middle East hit British households through the global oil market, then exposed a weakly regulated corner of the UK energy system. The conflict involving the US, Israel and Iran disrupted oil production and transport in the region, with the Strait of Hormuz a key pressure point. Wholesale oil prices rose from about $70 a barrel to nearly $120 between February and March. In the UK, that fed quickly into heating-oil costs: average retail prices peaked 92% higher, rising from about 64p a litre to 123p. That mattered because around 1.5 million to 1.7 million UK homes, mostly off the gas grid and concentrated in rural areas, rely on heating oil. In Northern Ireland, roughly 60% of households use it. Unlike gas and electricity customers, they are not protected by an Ofgem price cap or the same consumer safeguards. The CMA found that about 1,700 customers had existing orders cancelled as prices surged. Many then had to reorder at much higher rates, sometimes paying up to £350 more, while others risked running out of fuel altogether. Some reported extreme jumps, such as a 500-litre order rising from around £300 to more than £800. The watchdog said suppliers did not materially profit overall from the crisis, but the market rules left consumers exposed. That is why the CMA is now pushing compensation, legal action against firms that refuse to pay, and new rules on price quotes, cancellations, dispute resolution and support for vulnerable households.

3 articles · Updated · BBC.com · Jul 15

About 1,700 heating-oil customers across the UK may be owed compensation after suppliers allegedly cancelled lower-priced orders during the March Iran conflict and forced reorders at higher rates.
The CMA said some households paid £150-£350 more or went without fuel, and it is pressing holdout firms to compensate customers while preparing enforcement action if they refuse.
Its wider review found the market generally competitive and rejected gas-style price controls, but said heating-oil users lack equivalent consumer protections and need a proportionate new regulatory regime.
The watchdog recommended supplier registration, minimum standards on price quotes and cancellations, clearer payment-plan information, and a vulnerable-household register, with Northern Ireland especially exposed because about two-thirds of homes use heating oil.
Northern Ireland prices jumped a record 92% at the start of the conflict, though the CMA said the surge largely tracked wholesale costs; Stormont said it would consider the recommendations.