Heating oil users need more consumer protections, regulator says

Stronger safeguards are needed to protect the 1.5 million households relying on heating oil, regulator the Competition and Markets Authority (CMA) has said. Following a market-wide review, it's recommended a series of "practical changes" to ensure heating oil users are treated fairly in future.
The CMA's review found that those in remote areas "generally have less choice of suppliers and face higher prices", with global conflict pushing prices up even further.
It added that there are "clear gaps in the protections available to heating oil customers" compared to those covering domestic gas and electricity users – which it says could be addressed through "a new proportionate regulatory regime".
Earlier this year, we submitted a dossier of evidence to the CMA and the Department for Energy, explaining that heating oil users were "being clobbered by a perfect storm". We detailed examples of sharp and unexpected price increases, unfair practices including delayed or cancelled orders, and a general lack of regulation and protection.
What the regulator has recommended
The CMA says additional regulation is needed to "better protect people and improve outcomes, especially during periods of volatility". These suggested new rules would require suppliers to:
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Register with the regulator and meet "minimum standards". This could include how they quote prices, how they handle cancellations and the routes for independent dispute resolution they offer customers when something goes wrong.
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Ensure they "clearly signpost" information about their services. This should include the payment plans available to customers and the minimum purchase volumes they offer. The CMA has also recommended a follow-up review of the rules around minimum order volumes "to allow people to buy smaller amounts of heating oil".
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Create a register of vulnerable households. This would enable suppliers to provide better support.
A potential new "price checker" for consumers in Scotland has also been suggested, similar to the one currently available in Northern Ireland.
The CMA says it will now work with the UK Government, the devolved administrations, other regulators and suppliers to make its recommendations happen.
1,700 customers who had heating oil orders cancelled 'should be compensated'
As part of the announcement, the regulator has also confirmed that it's pushing to get compensation for an estimated 1,700 heating oil customers who it says were impacted "by possible breaches of contract". This would have occurred when some suppliers cancelled orders just as the conflict in the Middle East began in early 2026.
The CMA found that though affected customers did receive refunds, many "had to re-order at significantly higher prices or go without fuel". This means some customers will have paid between £150 and £350 more for their heating oil at the time than they normally would have, according to the CMA.
After it intervened, the regulator said SOME suppliers did offer up compensation, with some affected customers either receiving payments to cover the difference or having their original orders fulfilled at the original price. But the CMA added that "not all affected suppliers have agreed to such compensation", saying that it's now "preparing to take court-based enforcement action against firms" that fail to pay up voluntarily.


















