The Competition and Markets Authority (CMA) has confirmed that heating oil customers affected by cancelled orders during a price surge triggered by the Middle East crisis will receive compensation of up to £350. The watchdog estimates that around 1,700 people were impacted when prices spiked following the United States' attack on Iran.
CMA Report Details Compensation and Breaches
In a report published on Wednesday, the CMA will state that approximately 1,700 customers faced possible breaches of contract. While these customers received refunds for their original orders, many were forced to either pay significantly more or go without fuel altogether. The CMA noted that some individuals may have paid between £150 and £350 extra for their heating oil.
Sarah Cardell, the CMA's chief executive, said the 1,700 customers had been “left in limbo” after their orders were cancelled. She added: “While it’s encouraging that some suppliers have agreed to compensate customers, a number of firms still have not. We’ll be pressing them to do so and are preparing to take enforcement action if they don’t.”
Consumer Protections and Regulatory Gaps
The CMA acknowledged that while suppliers did not profit materially from the crisis, consumers reliant on heating oil are not as well protected as those connected to the gas grid. To address this, Cardell called for “stronger safeguards” and recommended that the UK and devolved governments introduce a new regulatory regime for heating oil suppliers.
Government Response and Future Action
Labour Party chancellor Rachel Reeves commented: “When the conflict in the Middle East drove a sharp rise in heating oil prices, I acted quickly to get financial support to homes reliant on oil. I also asked the CMA to investigate the market to make sure consumers were being treated fairly. It is reassuring to know it is a competitive market but the lack of protection for these households does concern me, so we will look very seriously at what can be done.”
