Families living in rural areas of the West Midlands have welcomed a recommendation from the Competition and Markets Authority (CMA) to improve protections for heating oil customers. The CMA's report, released on Wednesday, suggests that the UK government should bolster the rights of 1.5 million households reliant on heating oil as their primary fuel source.
The cost of heating oil has nearly doubled for many households after the start of the United States-Israel war with Iran in February. Average retail prices peaked 92% higher than normal, causing significant financial strain for those who rely on this fuel source.
Residents, such as Jemma McCarron from Worcestershire, have shared their experiences of struggling with high prices. McCarron's household of four, including her mother, daughter, and husband, was fortunate to have filled their 2,000 litre tank for £1,200 before the conflict began. However, many others were not as lucky.
The CMA's investigation found that price increases largely reflected rising wholesale costs. However, it concluded that there were 'clear gaps' in the protections available for customers, including access to alternative dispute resolution. The improved protections recommended by the CMA should cover how prices are quoted, cancellations are handled, and support for vulnerable consumers.
Some heating oil suppliers have already agreed to compensate those affected by the price increases. However, the CMA is considering legal action against those who have refused to do so. Chancellor Rachel Reeves has expressed concern about the lack of protection for these households and has promised to look seriously at what can be done.