- Around 1,700 heating oil customers could receive up to £350 in compensation.
- The CMA says suppliers cancelled orders during the Middle East price spike.
- The watchdog is also calling for new consumer protections for heating oil users.
Around 1,700 heating oil customers could receive up to £350 in compensation after suppliers cancelled deliveries during the sharp price surge triggered by the Middle East conflict, according to the Competition and Markets Authority (CMA).
The watchdog said its investigation found that while affected customers were refunded for their original orders, many were forced to buy heating oil at significantly higher prices or go without fuel altogether. The CMA estimates some households ended up paying between £150 and £350 more after suppliers cancelled confirmed orders.
The findings come as the regulator publishes the outcome of its review into the heating oil market, launched after prices surged following the escalation of tensions in the Middle East. The investigation concluded that suppliers did not make significant profits from the crisis, but also found that heating oil customers lack the protections available to households connected to the gas and electricity grid.
Watchdog pushes for stronger protections
CMA chief executive Sarah Cardell said around 1,700 customers had been "left in limbo" after their orders were cancelled. She reportedly said it was encouraging that some suppliers had agreed to compensate affected households, but added that several firms had yet to do so. The regulator is preparing enforcement action against companies that refuse to provide compensation.
The CMA is also urging the UK and devolved governments to introduce a dedicated regulatory framework for heating oil suppliers. Unlike gas and electricity providers, heating oil companies are not regulated by Ofgem and are not covered by the energy price cap, leaving customers more exposed to sudden price rises and contract disputes.
The proposed compensation package follows concerns that many rural households had little choice but to pay substantially more to refill their tanks during the crisis.
Government weighs further action
Chancellor Rachel Reeves reportedly said the government had moved quickly to provide financial support when heating oil prices spiked and had asked the CMA to investigate whether consumers had been treated fairly.
She reportedly added that while it was reassuring the market remained competitive, the lack of consumer protection for heating oil users remained a concern and the government would consider further action.
Earlier this year, ministers announced more than £50 million in targeted support for low-income households relying on heating oil, including £27 million for England, £17 million for Northern Ireland, £4.6 million for Scotland and £3.8 million for Wales. The funding is intended to help vulnerable households cope with rising heating costs while the government explores new consumer protection measures.
The CMA said its recommendations aim to ensure heating oil customers receive safeguards comparable to those already available in the wider energy market.
