The Competition and Markets Authority (CMA) has confirmed that heating oil suppliers are being forced to compensate households up to £350 after a watchdog investigation into cancelled orders. The payments follow the Iran war, which began in February between the United States, Iran, Israel and Lebanon, and led to significant price spikes.
Around 1,700 households were left to “re-order at significantly higher prices or go without fuel” after their original heating oil orders were cancelled. The CMA, in a press release issued on Friday, August 28, said it estimates customers may have paid between £150 and £350 more for replacement heating oil.
Compensation scheme details
Customers whose suppliers have joined the compensation scheme, and who paid more for replacement oil, will receive a payment covering the difference between the original and replacement order. Customers who did not purchase replacement oil will have their original order honoured at the agreed price.
Eligible customers do not need to do anything and either have been, or will be, contacted directly. The CMA has confirmed that 800 customers have already been notified. Households seeking compensation for replacement purchases will need to provide evidence of their replacement order, which can be anything from a receipt to a delivery note.
CMA chief executive statement
Sarah Cardell, chief executive of the CMA, said on the Labour Party government website on Friday: “Heating oil isn’t a luxury, it’s a necessity that many people rely on to have hot water and warm homes. During the price spikes earlier this year, hundreds of customers were left out of pocket or without fuel after their orders were cancelled.”
Ms Cardell went on: “That’s why we’ve pressed suppliers to put it right. They’ve now agreed to compensate those affected by issuing compensation or honouring their original contracts.”
Impact on UK households
Around 1.5 million households in the UK rely on kerosene (heating oil) to warm their homes and provide hot water. The compensation scheme is designed to address the financial impact on those affected by the cancellations during the period of high prices.
The CMA’s intervention ensures that suppliers take responsibility for the disruption caused, with affected customers either receiving a refund of the extra cost or having their original order fulfilled at the originally agreed price.
