UK Government Reforms Heating Oil Sector to Protect Consumers
The British government is strengthening heating oil regulations and reviewing minimum order levels after a study found 1,700 households were overcharged during price spikes.
The Government of the United Kingdom announced plans to reform the heating oil sector following a market study by the Competition and Markets Authority. The investigation revealed that 1,700 households were forced to purchase fuel at significantly inflated prices after supplier cancellations during price spikes caused by Middle East conflict. In some cases, heating oil prices more than doubled within a year, with some costs reaching £350.
Minister for energy consumers Polly Billington stated that energy is an essential good and that the government will strengthen regulation to ensure consumers receive a fair deal. Proposed reforms include requiring suppliers to register and adhere to minimum standards for price quoting, cancellation management, and access to independent dispute resolution. The Department for Energy Security and Net Zero will also implement a short-term code of conduct and review industry practices that mandate minimum order volumes, such as the 500-litre minimum currently faced by some consumers.
While the government allocated £53 million in March for low-income families using heating oil, campaigners continue to call for a price cap similar to those used for gas and electricity tariffs. The government has not proposed such a measure as part of the current reform package.
