UK energy consumers minister Martin McCluskey has stated that it is not possible to compensate every household affected by the sharp rise in heating oil prices triggered by the conflict in the Middle East. Speaking on Thursday, McCluskey acknowledged that while some suppliers have voluntarily provided compensation, others have not, and the Competition and Markets Authority (CMA) is now pursuing enforcement action against those firms.
CMA Report Highlights Widespread Impact
The CMA's report, released this week, recommended stronger protections for the 1.5 million UK households that rely on heating oil. At the peak of the crisis, average heating oil prices soared by 92%, leading to contract cancellations and forcing customers to reorder at significantly higher costs. CMA chief executive Sarah Cardell noted that around 1,700 customers were left in limbo after suppliers cancelled orders as the crisis unfolded.
Voluntary Compensation and Enforcement
McCluskey explained that compensation cannot be provided to everyone, as some price increases were within contractual terms. He stated: "It is not possible to provide compensation to everyone, in some cases these price increases were within contract. In a number of cases people have already been compensated, so some suppliers have already voluntarily compensated customers for those price increase. But there are still some suppliers who have not done that and that is where the CMA is now beginning the work of enforcement action to enforce those contracts that people signed."
Future Regulation Left to New Government
With Sir Keir Starmer stepping down as Prime Minister and Andy Burnham set to take over, McCluskey emphasised that it will be for the incoming government to decide on introducing regulations for the heating oil sector. The CMA has recommended that governments require suppliers to register and meet minimum standards covering price quoting, cancellation management, and access to independent dispute resolution. Suppliers should also clearly outline available payment plans and create a register for vulnerable households.
Minimum Order Volumes Under Review
The CMA has also called for a review of rules around minimum order volumes, allowing households to purchase smaller amounts of heating oil. McCluskey expressed confidence that the next government would take forward these recommendations, stating: "I see no reason why the government would not take forward these recommendations, given what has been very clearly stated by myself, the Prime Minister and others, about the need for regulation in this sector. The CMA have made an incredibly strong case in their report for regulation for heating oil."
