The Competition and Markets Authority (CMA) has warned heating oil suppliers that it expects customers who have placed orders to receive their fuel at the agreed price, amid price spikes caused by the Middle East conflict. The watchdog said it “won’t hesitate to take action” if it suspects consumer or competition law is being broken.
Home heating oil is used by around 1.5 million households in the UK, but sudden volatility in the global oil trade has caused prices to spike by up to £100 in the past week alone. The problem is particularly acute in Northern Ireland, where 62.5% of homes rely on the fuel, compared to the UK average of just over 5%.
Heating oil customers fall outside of Ofgem’s energy price cap protections, which currently fixes prices until the end of June. Emma Cochrane, acting executive director for consumer protection at the CMA, said: “We know the situation in the Middle East is putting pressure on heating oil prices, and we recognise that this will worry people who may find it hard to afford these extra costs. Generally, we would expect that customers who have placed orders for heating oil should receive it at the agreed price. Suppliers should be clear what they are charging and terms must be fair.”
Earlier on Monday, Energy Secretary Ed Miliband and energy minister Michael Shanks wrote to the UK and Ireland Fuel Distributors Association, telling them that the CMA was gathering evidence and looking at whether consumers were being treated fairly. The letter stated: “To be clear, our firm expectation is that pricing remains fair, transparent and fully justifiable, reflecting genuine market conditions. Customers should be provided with clear, timely and clear explanations for any price changes, including where prices are confirmed shortly before delivery.”
