The UK’s Competition and Markets Authority has concluded an investigation into heating oil suppliers following complaints about order cancellations during a period of elevated prices. The watchdog found that approximately 1,700 customers experienced contract breaches when suppliers cancelled existing delivery orders and offered replacements at substantially higher prices.
The pricing volatility stemmed from a Middle East conflict that caused significant energy market disruption. Heating oil prices peaked in April, reaching 123 pence per litre, representing a 92% increase from earlier levels. During this period, affected customers faced additional costs ranging from £150 to £350 for replacement deliveries, or were forced to proceed without fuel after their original orders were scrapped.
Following the CMA’s investigation, several suppliers have voluntarily agreed to provide compensation. Customers who paid premium prices for replacement oil will receive reimbursement for the difference, while those who could not secure alternative supplies will have their original orders fulfilled at the originally agreed rates. However, the regulator noted that some suppliers have not yet committed to compensation measures.
CMA leadership stated the authority is continuing discussions with non-compliant suppliers and has indicated readiness to pursue court-based enforcement action against companies refusing voluntary compensation. The regulator’s market study determined that price increases largely reflected genuine wholesale cost rises rather than supplier profiteering, though it found consumers lack protections equivalent to those on mains gas networks.
To address gaps in consumer protection, the CMA recommended governments establish a new regulatory framework for the heating oil sector. Proposed measures include a supplier registry and mandatory minimum standards governing order cancellation procedures, along with mandatory access to independent dispute resolution mechanisms. Government officials indicated receptiveness to implementing stronger safeguards for the approximately 1.5 million UK households, primarily in rural areas, that depend on heating oil for warmth and hot water.
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