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Heating oil customers face winter challenges as government promises regulatory reforms
Heating oil customers in the UK are bracing for a difficult winter despite government promises to improve regulation of the sector. The government has pledged to tighten rules, promote competition, and provide clearer compensation routes for customers facing issues. However, with heating oil prices nearly doubling over the past year, campaigners are calling for the same price cap applied to gas and electricity tariffs to be extended to heating oil. The government has not indicated any plans to implement such a cap, nor has it specified when stricter regulations will take effect. Energy minister Polly Billington stated that thousands of heating oil customers felt unprotected when facing rising oil and gas costs, emphasizing that energy is an essential good requiring consumer protection. The Competition and Markets Authority (CMA) found that 1,700 households were forced to reorder at significantly higher prices or go without fuel after the outbreak of the US-Israeli war with Iran, costing them up to £350. While the government has accepted the CMA's recommendation to strengthen sector regulation, many customers remain concerned about the lack of immediate relief. Domestic heating oil users, who number around 1.5 million households, do not have the same consumer protections as those using gas and electricity. Most heating oil customers are in Northern Ireland, where 60% of households rely on it, but regulation there is separate from the rest of the UK. The government has also offered discounts on heat pumps and is reviewing industry practices that set minimum order volumes at 500 litres for some consumers, a practice that has left some paying for more oil than needed. Industry experts like Tim Buckman of Boiler Juice argue that regulation alone won't reduce prices, suggesting instead that VAT should be removed from heating oil. Despite the government's promises, heating oil users continue to face financial strain, with prices more than doubling in a year to 111p per litre for some customers. Nick, a heating oil customer from West Suffolk, described heating his home as 'almost an investment' due to the high costs, highlighting the urgent need for policy changes to protect off-grid households.
