Heating oil customers are set to receive up to £350 in compensation for canceled orders, following an investigation by the UK competition watchdog, the Competition and Markets Authority (CMA). This decision comes as a response to the significant price surge in heating oil caused by the war in the Middle East, which led to existing orders being scrapped and new deliveries offered at much higher prices. The CMA's report reveals that approximately 1,700 customers were affected by these potential contract breaches, with many having to pay more or go without fuel despite receiving refunds for their original orders. The price of heating oil skyrocketed by 92% to 123p a liter during the peak of the crisis in April, and some customers paid an additional £150 to £350 for their heating oil. The CMA's chief executive, Sarah Cardell, emphasized the situation's impact on customers, stating that they were left in limbo after their orders were canceled. She also noted that while some suppliers have agreed to compensate affected customers, others have not, and the CMA is prepared to take enforcement action if necessary. This incident highlights the vulnerability of heating oil customers, who, unlike those connected to the mains gas network, have limited protection. The CMA's market study found that price increases were largely due to rising wholesale costs, but it also recommended stronger safeguards, including a register of suppliers, minimum standards for order cancellations, and access to an independent dispute resolution service. The UK government is considering these recommendations, with Chancellor Rachel Reeves expressing concern over the lack of protection for these households and promising to look into potential solutions.
