The government has announced plans to strengthen regulation in the heating oil market, aiming to protect consumers and promote competition. This decision follows a recommendation from the UK's competition watchdog, the Competition and Markets Authority (CMA).
Ministers have stated they will work with the industry to develop a new regulatory regime. This will include a review of minimum order levels, which for some customers are set at 500 litres, potentially forcing them to buy more oil than needed. Clearer compensation routes for customers when issues arise are also planned.
Energy minister Polly Billington said the government would not accept a situation where customers felt they had nowhere to turn due to rising costs. She added that energy is an essential good and people should feel protected in the market.
The CMA previously found that 1,700 households were forced to re-order at significantly higher prices or go without fuel after the US-Israeli war with Iran began, costing them up to £350. These customers were told they were entitled to compensation.
Heating oil prices have nearly doubled in the past year. While some campaigners have called for a price cap similar to gas and electricity tariffs, there is no indication the government is proposing such a measure, nor a timeline for when the stricter rules will take effect.