The government led by Andy Burnham has confirmed changes to the heating oil market that will affect around 1.5 million households across the UK. The announcement comes as these households brace for a difficult winter amid the ongoing war in Iran, which has contributed to rising oil and gas costs.
The Labour government, headed by the Makerfield MP, has vowed to protect heating oil customers through better regulation. The Cabinet says rules will be tightened and competition promoted, giving customers clearer compensation routes if things go wrong. Minimum order levels, which are currently set for some customers, will also be reviewed.
Government pledges new regulatory regime
Ministers said they would work with industry to "develop a regulatory regime for the heating oil market, protecting consumers and promoting competition". This marks a significant shift in how the sector is overseen, with the government acknowledging that current protections are insufficient.
Energy minister Polly Billington said: "Thousands of heating oil customers felt they had nowhere to turn when they paid the price of rising oil and gas costs earlier this year." She added: "We won't accept that. Energy is an essential good and people should not have to think twice about whether they're protected in the market. That's why we will reform the sector."
Customers and industry respond
Nick, a 28-year-old heating oil customer from West Suffolk, told the BBC's Your Voice that "off-grid households remain a major policy blind spot" for the government. He said: "Any protection from UK government for domestic heating oil users will be very welcome, providing this is for all domestic heating oil users." He described heating his home as "no longer another household bill, but almost an investment".
Tim Buckman, chief executive of price comparison site Boiler Juice, told the BBC: "Just putting regulation in place is not going to reduce the price for customers." He added: "What we would like to see is the VAT off heating oil or targeting that specifically."
Northern Ireland particularly affected
The impact of any changes will be felt most acutely in Northern Ireland, where 60 per cent of households rely on heating oil, making it by far the most common form of home heating. The UK government said it would "engage with the Northern Ireland Executive as they consider these recommendations in parallel".
The reforms are expected to be developed in consultation with industry stakeholders, with the aim of delivering a more transparent and fair market for the 1.5 million households that depend on heating oil.
