HEATING OIL CUSTOMERS TO RECEIVE UP TO £350 COMPENSATION

Approximately 1,700 heating oil customers affected by cancelled deliveries during a Middle East-triggered price surge will receive compensation of up to £350 each, the Competition and Markets Authority (CMA) announced following an investigation. When the crisis unfolded, suppliers cancelled existing orders and offered new deliveries at significantly higher prices. The CMA found that whilst customers received refunds for their original orders, many faced the choice of paying substantially more or forgoing fuel entirely. Several suppliers have already agreed to compensate affected customers following contact from the watchdog.

Heating oil prices experienced a sharp increase during the period in question, with the cost reaching 123 pence per litre in April, representing a 92 per cent rise. The CMA's investigation identified that some customers paid between £150 and £350 more for their heating oil as a result of the price movements. Those who paid additional sums will receive payments covering the difference, whilst those who did not purchase replacement oil will have their original orders fulfilled at the originally agreed price. The CMA's market study found that the price increases largely reflected rising wholesale costs.

The CMA stated that some suppliers have not yet agreed to compensate affected customers and that it is preparing to take enforcement action against companies that refuse to do so voluntarily. Sarah Cardell, the CMA's chief executive, said the 1,700 customers had been "left in limbo" following the cancellations. Approximately 1.5 million UK households, predominantly in rural areas without mains gas connections, rely on heating oil for heating, cooking and hot water. The regulator indicated it is prepared to pursue court-based enforcement action against firms that fail to compensate customers.