Business · Energy & Commodities · 4 hrs ago
UK plans stronger protections for heating oil customers
The UK Government plans stronger rules for heating oil suppliers to help ensure households are treated fairly.
The move follows a market study by the Competition and Markets Authority after conflict in the Middle East drove heating oil prices sharply higher.
The study found that rising wholesale costs largely explained the increases, but 1,700 households were owed compensation after suppliers cancelled orders and customers had to reorder at higher prices.
Heating oil customers are not covered by Ofgem’s energy price cap, and many buy large amounts at once.
A short-term code of conduct will strengthen consumer protection while longer-term regulation is developed.
The Government will also review minimum order rules that can require customers to buy 500 litres or more.
The regulator recommended supplier registration, minimum standards and access to independent dispute resolution.
The UK Government will strengthen regulation of the heating oil market to improve protections for households.
The Department for Energy and Net Zero said it would accept the Competition and Markets Authority’s recommendation to strengthen regulation.
The CMA found that 1,700 households were owed compensation after suppliers cancelled orders and customers had to reorder at higher prices.
In the short term, households will get stronger protection through a code of conduct, and rules on minimum order volumes will be reviewed.
Heating oil customers are not covered by Ofgem’s energy price cap, which fixes prices until the end of December.
- Who
- The UK Government and heating oil suppliers. Households that use heating oil are to receive stronger protections.
- What
- The Government plans to strengthen regulation of the heating oil market and introduce a code of conduct.
- When
- Announced on October 13, 2026. The code of conduct is described as a short-term measure.
- Where
- The UK.
- Why
- The CMA found consumers were less protected than households connected to the energy grid, including when suppliers cancelled orders.
This story does not have two clearly opposing sides.
Harriet Cross wrote to the CMA and the then energy secretary Ed Miliband calling for an investigation and help for households facing price hikes.
The CMA launched a market study after heating oil costs rose to record highs for households across Britain.
The Government announced it would accept the CMA’s recommendation to strengthen regulation of the heating oil sector.
- Households owed compensation
- 1,700
- Short-term protection
- A code of conduct for heating oil suppliers
- Minimum order volumes
- Some consumers are required to order 500 litres
- Energy price cap
- Heating oil customers are not covered; the cap fixes prices until the end of December
- Over 60%
- Share of Northern Ireland households relying on heating oil
What people are saying
Energy is an essential good and people should not have to think twice about whether they’re protected in the market.
That’s why we will reform the sector, holding heating oil suppliers to account and giving consumers confidence that they will get a fair deal.
Sources
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